Employment Agencies Act 1973 Overview and Key Changes

The Employment Agencies Act 1973 was a significant piece of legislation that aimed to regulate the employment agency industry in the UK.

The Act established the Central Register of Employment and the Employment Agency Register, which required all employment agencies to be registered and to adhere to certain standards.

Employment agencies were prohibited from charging fees to job seekers, a provision that was intended to protect workers from exploitation.

The Act also introduced stricter regulations for employment agencies, including requirements for them to maintain accurate records and to provide clear information to job seekers.

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The Employment Agencies Act 1973 has undergone significant changes over the years. It was updated to include all changes known to be in force on or before 20 October 2025.

Employment Agencies Act 1973 was last updated on 20 October 2025. There may be future changes that have not been implemented yet.

Section 3 of the Act was repealed on 3 January 1995. This change was made through the 1994 c. 40 Act, specifically sections 35, 81, and Sch. 10 Pt. I para. 1(2), Sch. 17.

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The Act has also undergone word substitutions. The Criminal Justice Act 1988 (c. 33, SIF 39:1) made changes to the Act on 6 March 1988. This change involved substituting certain words, specifically those mentioned in s. 123(6), Sch. 8 Pt. I paras. 7, 16.

The Employment Agencies Act 1973 was originally enacted in 1962 as part of the 1962 c. 47 Act.

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A prohibition order can be made against any employment agency or employment business, or a specified description of one, for a period beginning with the date of the order.

This order can either prohibit a person from engaging in an activity altogether or prohibit them from doing so otherwise than in accordance with specified conditions.

The Secretary of State must be a party to any proceedings before an employment tribunal with respect to an application under this section, and be entitled to appear and be heard accordingly.

Any person who fails to comply with a prohibition order without reasonable excuse can be guilty of an offence and liable to a fine, with the option of summary conviction to a fine not exceeding the statutory maximum.

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Licences EWS are governed by specific regulations.

A prohibition order can prohibit a person from engaging in an activity altogether or with specified conditions.

An order under subsection (1) of this section, referred to as a prohibition order, can either prohibit a person from engaging in an activity altogether or prohibit him from doing so otherwise than in accordance with specified conditions.

A prohibition order shall be made for a period beginning with the date of the order and ending on a specified date or on the happening of a specified event.

The order can be made against any employment agency or employment business, or against any specified description of employment agency or employment business.

A person shall not be deemed to fall within subsection (5)(c) by reason only that the directors act on advice given by him in a professional capacity.

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Failing to comply with a prohibition order can have serious consequences. Any person who, without reasonable excuse, fails to comply with a prohibition order shall be guilty of an offence and liable to a fine.

The Secretary of State is entitled to appear and be heard in any proceedings before an employment tribunal with respect to an application under this section. This means they have a significant role in ensuring compliance with prohibition orders.

A prohibition order can be made by an employment tribunal to prevent vexatious or frivolous applications. The tribunal may prohibit the making of an application, or further application, under this section in relation to the prohibition order before a specified date.

Any person guilty of an offence under this section shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

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Limited Company contractors have the option to opt out of regulations, but this can actually make it easier for HMRC to identify them as self-employed, which may raise issues with IR35 rules.

To avoid falling within IR35 rules, every action should be taken to ensure you're not considered an employee.

You must opt out prior to your contract starting, and this is done by informing the relevant parties and signing an EAA opt-out form.

Opting out will mean you no longer receive the same protection as a PAYE worker would.

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If you're considering working with an employment agency, it's essential to understand the restrictions in place to protect workers. A person carrying on an employment agency shall not request or directly or indirectly receive any fee from any person for providing services to find them employment.

Employment businesses also face restrictions on charging fees. A person carrying on an employment business shall not request or directly or indirectly receive any fee from an employee for providing services to find another person to work under. This includes situations where the employee is seeking to work for a third party.

A person carrying on an employment business shall not request or directly or indirectly receive any fee from a second person for providing services to find a third person to work for the second person. Any person who contravenes this section shall be guilty of an offence and liable.

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A person carrying on an employment agency shall not request or directly or indirectly receive any fee from any person for providing services for the purpose of finding him employment or seeking to find him employment.

Employment agencies are prohibited from charging individuals for their services, including the provision of information to help them find a job. This means that employment agencies cannot ask for payment from job seekers for their services.

A person carrying on an employment business shall not request or directly or indirectly receive any fee from an employee for providing services for the purpose of finding or seeking to find another person, with a view to the employee acting for and under the control of that other person.

This restriction applies to employment businesses, which are prohibited from charging employees a fee for finding them another job or seeking to find them another job where they would be under the control of someone else.

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A person carrying on an employment business shall not request or directly or indirectly receive any fee from a second person for providing services for the purpose of finding or seeking to find a third person, with a view to the second person becoming employed by the first person and acting for and under the control of the third person.

This restriction also applies to employment businesses, which are prohibited from charging someone a fee for finding them a job where they would be working under the control of someone else.

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Charities are exempt from the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003.

An employment business can impose binding restrictions on a temporary worker to stop him from working directly for an end user or setting up his own business.

Agency workers have no rights regarding the choice of the umbrella company they are paid through, as regulation 5 1 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 does not provide any guidance on this matter.

It is lawful for an employment business to charge a transfer fee where the hirer introduces the work seeker to a third party.

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The Employment Agencies Act 1973 can be cited as the F9014 Short title, repeals, commencement and extent.

This Act repeals the enactments specified in the Schedule to this Act to the extent specified in the third column of that Schedule.

The Secretary of State may repeal any provision of any local Act that appears to be unnecessary or inconsistent with the Act, and make necessary amendments and transitional provisions.

This Act comes into force on a date appointed by the Secretary of State, which may be different for different provisions and purposes.

The Act does not extend to Northern Ireland.

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Interpretation is a crucial aspect of understanding laws and regulations. It's not just about reading the words on the page, but also about understanding the intent and purpose behind them.

In the context of statutory interpretation, the courts have developed various rules to guide the process. For example, the rule of literal interpretation is often used, which involves giving the words of the statute their ordinary and literal meaning.

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The courts also consider the purpose and object of the statute, as well as the consequences of a particular interpretation. This is evident in the example of the "Golden Rule" of interpretation, which suggests that the words of the statute should be read in a way that promotes the purpose of the law.

In some cases, the courts may also consider the historical context in which the statute was enacted. This can be important in understanding the original intent of the lawmakers and how it may have changed over time.

The courts have also developed rules to deal with ambiguities and uncertainties in the statute. For example, the rule of ejusdem generis suggests that where a general term is followed by specific examples, the general term should be limited to the same type as the specific examples.

Ultimately, interpretation is a nuanced and complex process that requires careful consideration of various factors. By understanding the rules and principles of interpretation, individuals can better navigate the complexities of the law.

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This Act may be cited as the Employment Agencies Act 1973.

The Employment Agencies Act 1973 repeals the enactments specified in the Schedule to this Act to the extent specified in the third column of that Schedule.

The Secretary of State may, after consultation, repeal any provision of a local Act that appears to be unnecessary or inconsistent with the Act, and make necessary amendments and transitional provisions.

This Act comes into force on a date appointed by the Secretary of State, which may be different for different provisions and purposes.

This Act does not extend to Northern Ireland.

The power of appointment conferred by section 14(4) was exercised by Statutory Instrument 1976/709.

Section 13(7)(fa) was inserted by the 1999 c. 29, and Schedule 27, paragraph 37, with effect from 3.7.2000, as recorded in Statutory Instrument 2000/1648.

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