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Employment agencies to face tougher scrutiny in the future
An Employment Bill, which will strengthen powers of investigation and prosecution of unscrupulous employment agencies, has reached the second stage in the Assembly.
The Bill, which was introduced by Employment Minister, Sir Reg Empey, will enable the Department for Employment and Learning to pursue serious offences under employment agency law in the Crown Court, with the potential for unlimited fines. In addition, the Department will be able to demand financial information from banks about agencies under investigation.
Speaking after the second reading of the Bill, the Minister said: "The vast majority of employment agencies comply with the law and make an important contribution to the local economy. It is, however, necessary for my Department to have the powers outlined in the Bill in order to deal with the small number of agencies that bring the industry into disrepute.
"At present the maximum fine for a breach of employment agency law is £5,000, which is no deterrent to an agency which may be exploiting vulnerable workers and making money by acting illegally. The powers to demand financial information from banks will be used sparingly and only after an agency has refused to provide the data for investigation purposes."
The Bill also contains measures to allow the Department's Agency Inspectors to exchange National Minimum Wage information with HM Revenue and Customs and other minor and technical amendments. It is intended that the Bill will complete remaining Assembly stages by the end of the year.
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