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An employment agency is an organization which matches employers to employees. In developed countries, there are multiple private businesses which act as employment agencies and a publicly funded employment agency.
One of the oldest references to a public employment agency was in 1650, when Henry Robinson proposed an "Office of Addresses and Encounters" that would link employers to workers. [1] The British Parliament rejected the proposal, but he himself opened such a business, which was short-lived. [2]
The idea to create public employment agencies as a way to fight unemployment was eventually adopted in developed countries by the beginning of the twentieth century.
In the United Kingdom, the first labour exchange was established by social reformer and employment campaigner Alsager Hay Hill in London in 1871. This was later augmented by officially sanctioned exchanges created by the Labour Bureau (London) Act 1902, which subsequently went nationwide, a movement prompted by the Liberal government through the Labour Exchanges Act 1909. The present public provider of job search help is called Jobcentre Plus.
In the United States, a federal programme of employment services was rolled out in the New Deal. The initial legislation was called the Wagner-Peyser Act of 1933 and more recently job services happen through one-stop centers established by the Workforce Investment Act of 1998.
In Australia, the first public employment service was set up in 1946, called the Commonwealth Employment Service.
The first known private employment agency Robinson, Gabbitas & Thring, was founded in 1873 by John Gabbitas who recruited schoolmasters for public schools in England. [3] In the United States, the first private employment agency was opened by Fred Winslow who started an Engineering Agency in 1893. It later became part of General Employment Enterprises who also owned Businessmen's Clearing House (est. 1902). Another of the oldest agencies was developed by Katharine Felton as a response to the problems brought on by the 1906 San Francisco earthquake and fire. [4]
The International Labour Organization's first ever Recommendation was targeted at fee charging agencies. [5] The Unemployment Recommendation, 1919 (No.1), Art. 1 called for each member to,
"take measures to prohibit the establishment of employment agencies which charge fees or which carry on their business for profit. Where such agencies already exist, it is further recommended that they be permitted to operate only under government licenses, and that all practicable measures be taken to abolish such agencies as soon as possible."
The Unemployment Convention, 1919, Art. 2 instead required the alternative of
"a system of free public employment agencies under the control of a central authority. Committees, which shall include representatives of employers and workers, shall be appointed to advise on matters concerning the carrying on of these agencies."
In 1933 the Fee-Charging Employment Agencies Convention (No.34) formally called for abolition. The exception was if the agencies were licensed and a fee scale was agreed in advance. In 1949 a new revised Convention (No.96) was produced. This kept the same scheme, but secured an 'opt out' (Art.2) for members that did not wish to sign up. Agencies were an increasingly entrenched part of the labor market. The United States did not sign up to the Conventions. The latest Convention, the Private Employment Agencies Convention, 1997 (No.181) takes a much softer stance and calls merely for regulation.
In most countries, agencies are regulated, for instance in the UK under the Employment Agencies Act 1973, or in Germany under the Arbeitnehmerüberlassungsgesetz (Employee Hiring Law of 1972).
An executive-search firm specializes in recruiting executive personnel for companies in various industries. This term may apply to job-search-consulting firms who charge job candidates a fee and who specialize in mid-to-upper-level executives. In the United States, some states require job-search-consulting firms to be licensed as employment agencies.
Some third-party recruiters work on their own, while others operate through an agency, acting as direct contacts between client companies and the job candidates they recruit. They can specialize in client relationships only (sales or business development), in finding candidates (recruiting or sourcing), or in both areas. Most recruiters tend to specialize in either permanent, full-time, direct-hire positions or in contract positions, but occasionally in more than one. In an executive-search assignment, the employee-gaining client company – not the person being hired – pays the search firm its fee.
An executive agent is a type of agency that represents executives seeking senior executive positions which are often unadvertised. In the United Kingdom, almost all positions up to £125,000 ($199,000) a year are advertised and 50% of vacancies paying £125,000– £150,000 are advertised. However, only 5% of positions which pay more than £150,000 (with the exception of the public sector) are advertised and are often in the domain of around 4,000 executive recruiters in the United Kingdom. [6] Often such roles are unadvertised to maintain stakeholder confidence and to overcome internal uncertainties.
Contract - Contract staffing refers to a type of employment arrangement where an individual is hired by a company for a predetermined period to work on a specific project or task. Contracts can vary in duration and may be short-term or long-term. [7] This arrangement often benefits employers by providing flexibility in staffing for temporary needs. In contract staffing, individuals, often referred to as "contractors" or "consultants," bring specialized skills and expertise to tackle short-term projects or address specific organizational needs. This staffing model is prevalent in industries like IT and engineering, where demand for specialized skills can fluctuate. Contract employees may be called independent contractors, 1099 employees, or freelancers, and are considered self-employed workers who operate on a contract basis for clients [8]
Contract-to-hire - Contract-to-hire, also known as temp-to-perm, is a staffing model where an employee initially works for a company as a contractor or temporary worker with the possibility of being hired as a permanent employee after a trial period. This arrangement allows employers to assess an employee's skills and fit for a role before making a long-term commitment. Contract-to-hire arrangements, sometimes termed "try before you buy", allow companies to evaluate a candidate's cultural fit and performance before committing to a permanent hire. [9] This approach can mitigate hiring risks and ensure a better match between the candidate and the organization's long-term goals.
Temporary - Temporary staffing involves hiring individuals for short-term positions to meet immediate staffing needs. Temporary workers are typically employed by staffing agencies and may work on assignments ranging from a few days to several months. [10] This provides flexibility for employers to manage fluctuations in workload.
Part-time - Part-time staffing refers to employment where individuals work fewer hours than full-time employees. Part-time employees often have a set schedule but work fewer hours per week or month. [11] This arrangement is commonly used in industries with variable workloads or to accommodate employees seeking work-life balance. [12]
Full-time - Full-time staffing is the traditional employment model where individuals work a standard 40-hour workweek. Full-time employees typically receive benefits such as health insurance and paid time off. This type of staffing is common in many industries and offers job stability. This model is standard across many industries, fostering loyalty and long-term commitment. [13]
GAP staffing (graphic arts professional) - GAP staffing, specific to graphic arts professionals, may involve hiring individuals with specialized skills in graphic design, illustration, or related fields on a temporary or contract basis to fill gaps in creative teams. This staffing type is essential for companies with fluctuating design and creative needs. This term is not widely used but is niche within the recruiting space.
Many agencies offer partial refunds on their fees if appointed staff do not remain for long in employment, if invoices have been paid within seven days of issue. This allows the agency and employer to share risk. In 2006, the Court of Appeal for England and Wales ruled that the loss of such a refund in circumstances where invoices had not promptly been paid did not amount to a "penalty charge" under the English law which then applied, because the legal issues regarding penalty clauses only arose in circumstances where a breach of contract was potentially being penalised. The issues in the case of Euro London Appointments Ltd. v Claessens International Ltd. did not amount to a breach of contract. This ruling enabled UK recruitment agencies to maintain this practice within their terms and conditions. [14]
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties. Employees in some sectors may receive gratuities, bonus payments or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits may include health insurance, housing, and disability insurance. Employment is typically governed by employment laws, organisation or legal contracts.
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £10.42 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995. Workers must be able to vote for trustees of their occupational pensions under the Pensions Act 2004. In some enterprises, such as universities or NHS foundation trusts, staff can vote for the directors of the organisation. In enterprises with over 50 staff, workers must be negotiated with, with a view to agreement on any contract or workplace organisation changes, major economic developments or difficulties. The UK Corporate Governance Code recommends worker involvement in voting for a listed company's board of directors but does not yet follow international standards in protecting the right to vote in law. Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work. Collective agreements are ultimately backed up by a trade union's right to strike: a fundamental requirement of democratic society in international law. Under the Trade Union and Labour Relations (Consolidation) Act 1992 strike action is protected when it is "in contemplation or furtherance of a trade dispute".
Temporary work or temporary employment refers to an employment situation where the working arrangement is limited to a certain period of time based on the needs of the employing organization. Temporary employees are sometimes called "contractual", "seasonal", "interim", "casual staff", "outsourcing", "freelance"; or the words may be shortened to "temps". In some instances, temporary, highly skilled professionals refer to themselves as consultants. Increasingly, executive-level positions are also filled with interim executives or fractional executives.
Recruitment is the overall process of identifying, sourcing, screening, shortlisting, and interviewing candidates for jobs within an organization. Recruitment also is the process involved in choosing people for unpaid roles. Managers, human resource generalists, and recruitment specialists may be tasked with carrying out recruitment, but in some cases, public-sector employment, commercial recruitment agencies, or specialist search consultancies such as Executive search in the case of more senior roles, are used to undertake parts of the process. Internet-based recruitment is now widespread, including the use of artificial intelligence (AI).
An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old master-servant law, used before the 20th century. Employment contracts relies on the concept of authority, in which the employee agrees to accept the authority of the employer and in exchange, the employer agrees to pay the employee a stated wage.
Wage labour, usually referred to as paid work, paid employment, or paid labour, refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labour power under a formal or informal employment contract. These transactions usually occur in a labour market where wages or salaries are market-determined.
This article gives detailed information on the employment situation in Hong Kong.
Permatemp is a U.S. term for a temporary employee who works for an extended period for a single staffing client. The word is a portmanteau of the words permanent and temporary.
Contingent work, casual work, or contract work, is an employment relationship with limited job security, payment on a piece work basis, typically part-time that is considered non-permanent. Although there is less job security, freelancers often report incomes higher than their former traditional jobs.
Executive search is a specialized recruitment service which organizations pay to seek out and recruit highly qualified candidates for senior-level and executive jobs across the public and private sectors, as well as non-profit organizations. Headhunters may also seek out and recruit other highly specialized and/or skilled positions in organizations for which there is strong competition in the job market for the top talent, such as senior data analysts or computer programmers.
Foreign domestic helpers in Hong Kong are domestic workers employed by Hongkongers, typically families. Comprising five percent of Hong Kong's population, about 98.5% of them are women. In 2019, there were 400,000 foreign domestic helpers in the territory. Required by law to live in their employer's residence, they perform household tasks such as cooking, serving, cleaning, dishwashing and child care.
In Australia, labour hire is referred to by the legal term of art labour hire arrangement, and refers to the employment practice of an employer supplying its employees to another workplace, for profit.
The Employment Agencies Act 1973 is a United Kingdom act of Parliament and part of a wider body of UK agency worker law. It regulates the conduct of employment agencies which recruit and manage temporary and permanent labour. It applies to approximately 17,000 employment agencies operating in the UK. It was introduced by a private member's bill by Kenneth Lewis, member of parliament for Rutland and Stamford.
United Kingdom agency worker law refers to the law which regulates people's work through employment agencies in the United Kingdom. Though statistics are disputed, there are currently between half a million and one and a half million agency workers in the UK, and probably over 17,000 agencies. As a result of judge made law and absence of statutory protection, agency workers have more flexible pay and working conditions than permanent staff covered under the Employment Rights Act 1996.
Agency worker law refers to a body of law which regulates the conduct of employment agencies and the labour law rights of people who get jobs through them. The typical situation involves the person going to an employment agency and then the employment agency sending the person to an actual employer for proper work.
Iranian labor law describes the rules of employment in Iran. As a still developing country, Iran is considerably behind by international standards. It has failed to ratify the two basic Conventions of the International Labour Organization on freedom of association and collective bargaining, and one on abolition of child labor. Countries such as the US and India have also failed to ratify many of these Conventions and a mere 14 other Conventions, only 2 since the Islamic Revolution.
The Temporary Foreign Worker Program is a program of the Government of Canada that allows employers in Canada to hire foreign nationals. Workers brought in under the program are referred to as Temporary Foreign Workers (TFWs) and are allowed to work in positions that are not filled by Canadians. The aim was to address skill shortages and promote economic growth. Initially, the program was aimed at nurses and farm workers, but today it gives highly skilled and less skilled workers the opportunity to work in Canada.
Dispatched labor refers to an atypical employment relationship. Dispatch work agencies receive requests from businesses to have them hire and manage labor on the business' behalf. This type of labor is known as "dispatched labor". There is in fact no direct contract between dispatched laborers and the enterprise which uses the agency's services, so in this way, dispatched employment follows a triangle structure. As dispatch agencies are often highly adept in hiring and managing workforces, businesses are more than happy to use an agency to manage part of their workforce as it saves time, money, and if you are a foreign enterprise, the hassle of quickly understanding the legal workings of a local labor force.
Lebanon has gone through many stages in its absorption of migrant workers, both before and after the Lebanese Civil War. This development has led to multiple problems regarding integration in Lebanese society. The ambiguity of the Kafala system in Lebanon has resulted in migrant domestic workers facing many legal issues and violations to their basic human rights. The government has largely been inactive and ineffective in implementing laws to protect migrant domestic workers but has attempted to manage the situation but to little avail.
Labour hire is a form of employment in which an employer directs their de jure employees to perform work at an external workplace, belonging to a client of the legal employer.
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