New legislation to hit recruitment agency profits

Recruitment
agencies believe legislation to improve the working conditions of temps will
dramatically affect their profits.

Nine
out of 10 recruitment agencies questioned by law firm Howard Kennedy believe
that administration and wage costs will increase as a direct result of
impending EU and UK legislation.

In
most cases the extra cost will be passed to clients rather than the agencies
themselves, the survey finds.

The
survey of 50 firms also confirms fears that the regulations may reduce job
opportunities for temps thereby harming the very people they are designed to
protect.

More
than 80 per cent of the recruitment agencies surveyed expect the EU proposals
to reduce the demand for temporary workers.

A
similar number also expect the EU and UK proposals to have a negative effect on
the recruitment industry.  www.howardkennedy.com

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