Recruitment Sector Update - January 2012

Recruitment Sector Update
  
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Recruitment Sector Update
Issue 02 January 2012
In this issue:
Protecting Temporary Workers from Third Party Agency Poaching
Enforcing Post Termination Restrictions and Protecting Confidential Information
What does the Reed Employment v Commissioners LON/2004/013 mean for recruitment companies and the future?
Data Protection Act 1998 DPA: A practical focus on the impact within the Recruitment Sector

Debt Recovery

Fixed and capped fee recruitment fee recovery


Employer Support

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Dear Penny

Luke Harrison

Happy New Year and welcome to the second edition of our Recruitment Sector update.

We know that many of you have your year end on the 31st December so we held off sending out this edition until the New Year. With year end being out of the way, now is as good a time to start thinking about ways to increase profits and decrease risk over the forthcoming year.

This update includes a selection of articles aimed at giving recruitment sector businesses practical tips to increase their bottom line. Some of the articles focus on maximising revenue streams and others look at issues of risk which, if not properly managed, can cost you money and ultimately affect the bottom line. If any of the articles raise questions which you would like to explore further please do call for a free consultation with one of our specialist recruitment sector lawyers.

Lastly we are pleased to report a recent victory for a recruitment sector client in a claim for three permanent introduction fees. The case involved an issue which often comes up in claims for permanent introduction fees, namely whether the employment agency was the effective cause of the introduction. A full report on the case will feature in the next edition of this newsletter. In the meantime if you need advice on similar claims please do not hesitate to contact us.

Best wishes

Luke Tucker Harrison, Senior Associate Solicitor

Debenhams Ottaway Recruitment Sector Team

This article is the second in a series of articles concerning transfer fees. For a general background on transfer fees please see the first article in the series, “ Maximising profits through transfer fees ”. ...

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ContractIn the current economic client it is becoming increasingly important forthe recruitment sector to ensure that it has the maximum protection inplace to prevent employees from taking confidential information andclients with them when they leave. What steps can be taken to protectthe confidential information and prevent clients and staff from beingsolicited?

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VAT calculatorReed Employment v Commissioners LON/2004/013, what are the implicationsfor recruitment companies?

The tribunal held that in providing temporary staff to its clients Reedwas supplying introductory services rather than making supplies ofstaff. Accordingly the company was only liable to account for VAT on thecommission element of its charge and not on the overall amount paid bythe client which included the wages paid to the temp and associatedNational Insurance contributions.

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Job StatisticsThe growing use of information technology and the boom in onlinerecruitment has expanded opportunities for data processing and sharingbut raises dilemmas about data protection and respect for individualinformation rights.

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