Employment agency regulations and reference checking — UK compliance obligations

What employment agency regulations require for references

The Conduct of Employment Agencies and Employment Businesses Regulations 2003 require agencies and employment businesses to take reasonable steps to ensure that a work-seeker is suitable for any position they are introduced to. For positions involving work with vulnerable people — children, elderly people, people with disabilities — the regulations specify additional requirements including obtaining references that address suitability to work with the relevant group. These requirements underpin the regulated sector reference obligations for care, education and healthcare agencies and represent the baseline obligation for all UK employment agencies.

Employment businesses and temp worker reference obligations

Employment businesses — which supply workers who remain employed by the business rather than being placed into direct employment — face specific obligations under the regulations regarding worker suitability. An employment business that supplies a temp worker to a client workplace has obligations to verify that worker's suitability for the role, including through references. The obligation exists before the first supply to any new hirer, regardless of whether the worker has previously been supplied to other clients.

UK agencies that have not reviewed their reference checking process against the Employment Agencies Act and Conduct Regulations may have compliance gaps they are unaware of. The regulations are the baseline — regulated sector requirements (CQC, Ofsted, NHS) layer additional requirements on top. RefAssure satisfies both baseline regulatory requirements and sector-specific requirements through a single automated reference process. From 99p per reference.