DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2009/56)
issued by COI News Distribution Service. 12 March 2009
The Government has
put modelling and entertainment agencies in London under the
spotlight. Nine agencies have been issued with warnings for
failing to comply with the law.
This follows an investigation by the Government's Employment
Agency Standards Inspectorate. Of the nine offending agencies,
inspectors found 37 separate infringements of the law.
Many of these offences were relatively minor, but the worst
practices identified included:
* charging illegal fees
* sub-standard accounting practices
Employment Relations Minister Pat McFadden said:
""There are some agencies willing to exploit models and
entertainers who think they've got the X-Factor but
don't know their rights. This behaviour is unacceptable and
agencies that flout the law should get their final curtain call.
"The Government has doubled the number of Employment Agency
Standards inspectors so that they can get out on the ground and
target the rule-breakers."
The Employment Agency Standards team acted in London following
reports of improper activity in agencies supplying staff in the
modelling and entertainment sectors. Follow up investigations will
take place to make sure that the agencies concerned have acted to
change their ways. Agencies that continue to disobey the law
could be prosecuted, hit hard with fines or even banned from
operating for up to 10 years.
The Government will shortly publish a consultation, which will
seek views on any further steps that might be needed to protect
models and entertainers.
These inspections come hot on the heels of a successful
prosecution of an agent in the West Midlands, who withheld £3,500
from entertainers including comedian Tom O'Connor.
People can report employment agencies they suspect of breaking
the law by contacting the Employment Agency Standards inspectorate
on 0845 955 5105 or emailing eas@berr.gsi.gov.uk.
Notes to Editors
1. The Employment Agency Standards inspectorate is part of the
Department for Business, Enterprise and Regulatory Reform. The
Inspectorate carries out inspections of agencies on the basis of
perceived risk of non-compliance and investigates complaints about
agency conduct.
2. The inspectors were in London in the week beginning 23
February, visiting 10 agencies in total.
3. Agencies who break the law could face prosecution and fines of
up to £5,000 per offence. Rogue agencies could also be banned from
operating for up to ten years.
4. For legal reasons, Department for Business cannot name the
agencies warned, unless they are prosecuted or prohibited.
5. Under the Conduct of Employment Agencies and Employment
Business Regulations 2003 it is illegal to charge both the hirer
and the work-seeker for finding employment for a work-seeker.
Agencies are also required to protect fees taken from models and
entertainers in a separate pot. This is so that in the unlikely
event that an agency went out of business, employees' money
would be guaranteed.
6. Further Information on the rules around models and
entertainers can be found here -
http://www.direct.gov.uk/en/Employment/Understandingyourworkstatus/Agencyworkersandemploymentagencies/DG_173262
7. Information on the recent prosecution of Gerald Leslie Hemming
for withholding fees from entertainers can be accessed here - http://nds.coi.gov.uk/content/detail.asp?ReleaseID=391138&NewsAreaID=2&NavigatedFromSearch=True