Temp agency owner charged with violating federal tax code

April 12, 2012 under all posts

Temp agency owner charged with violating federal tax codeThe owner of two temporary placement agencies in Pennsylvania has been charged with violating federal tax code. Kim Yoeun allegedly failed to collect $229,000 in employment taxes and if convicted, could face up to 5 years in jail, 3 years of parole, and a $100,000 fine.

Yoeun’s agencies, Lancaster Packers and BC Farm Resources, supplied workers for low-skill jobs such as agricultural work, packaging and assembly work at client businesses for cash wages. Yoeun told businesses that his agencies would file the employment taxes but prosecutors claim that he did not pay these taxes, many IRS forms were falsified, and the agency’s workers were not supplied with the appropriate paperwork.

See the full story on LancasterOnline.com

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Executive search firm sued in New York Supreme Court

January 6, 2012 under all posts

Executive search firm sued in New York Supreme CourtSenior executive search firm Marshall-Alan Associates is being sued by Amsterdam Hospitality Group (AHG) in the New York Supreme Court for allegedly breaching contract and committing fraud. The hotel chain alleges that Marshall-Alan have been charging lucrative placement fees for senior members of staff and then, shortly thereafter, have been placing the same personnel at different hospitality companies in order to claim an additional placement fee.

Marshall-Alan have rebutted, saying that the accusations made by AHG are false and they’ll defend the claims in court.

See the full news piece on PRWeb.com
See Marshall-Alan’s response on WorkForce.com

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Recruitment agencies, beware of cyber attacks

January 6, 2012 under all posts

Recruitment agencies, beware of cyber attacksThe UK’s Government Communications Headquarters (GGHQ) reports that cyber attacks now join international terrorism at the top of the threat list. And it’s not just retailers and multi-national organisations under attack by cyber criminals. High-profile attacks are happening left and right but it is thought that 2012 will see a change of tactics by hackers, who will start going after smaller companies with little or no cyber security in place.

This list of companies includes recruitment agencies. Recruitment agencies hold a vast amount of personally identifiable information including names, addresses, bank details and much more, not to mention that they have an increasing reliance on the internet to run their business. In order to prevent a hack attack, and to soften the blow in case one does take place, geniusteam.org suggests agencies make sure their data protection protocols are up-to-date and that they have insurance in place to protect against costly breaches.

See the full story on geniusteam.org
Our recruitment policy includes cyber and privacy liability as standard. Click here for more info.

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Pay dispute leads to Argos employee strike

January 6, 2012 under all posts

Pay dispute leads to Argos employee strikeAfter just a few months in effect, the Agency Worker Regulations are already causing a few headaches. Just a few weeks ago, around 200 people showed up to support a strike held by several Adecco-placed employees from Argos, Burton-on-Trent. The agency workers decided to go on strike just before Christmas over what the union Unite called “pay apartheid.”

Due to receive a £3 per hour pay rise on Christmas Eve, the agency workers had found that their new Swedish Derogation contracts would not grant this. These were contracts that they were asked to sign or risk being asked to leave.

Although the union had suggested a “phased approach” to pay and other compromises, Argos would not budge. Recruiter.co.uk reports that the Argos response was that it is Adecco who deal with the terms of the contract. It seems there is still some grey area around agency workers.

See the full story on Recruiter.co.uk
See other stories about Swedish Derogation by clicking it in the “tags” section beneath this post.

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AWR updates to CFC’s recruitment product

October 26, 2011 under all posts

AWR updates to CFC’s recruitment productThe new UK Agency Worker Regulations came into effect on October 1st. In response, CFC has made some key updates to its recruitment policy (RES) wording.

In an effort to keep employers from exploiting temporary workers, the Agency Worker Regulations (AWR) which came into effect earlier in the month will give those on shorter term contracts that same rights as permanent staff in the same position after 12 weeks. This includes everything from pay to holiday allowance.

Although the new regulations have good intentions at heart, the implications are nonetheless concerning recruiters. Temporary recruitment agencies in the UK are going to have to change their procedures and train their staff accordingly to ensure they comply with the AWR.

This creates a new insurance requirement because agencies will be exposed to financial loss if they fail to comply. However, we at CFC have recently updated our RES wording to provide cover for any unintentional breaches of the AWR. This cover attaches to the professional indemnity insuring clause and is included at no extra cost.

Not in the UK? We have news for you too! We’ve removed the non-standard contract exclusion in RES policies worldwide to help clarify our actual underwriting intent and make it really clear that we can cover recruitment firms even when they are not working on their own standard terms of business.

To find out more about the AWR, how it affects the liability of recruitment agencies and what CFC is doing to cover these exposures, feel free to email us with any questions you may have.

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Regulation 10 muddies the AWR transition

October 17, 2011 under all posts

Regulation 10 muddies the AWR transitionThe Agency Worker Regulations which came into effect on October 1st are already kicking up a few issues. The REC reports that recruitment agencies are getting asked increasingly by clients to adopt Regulation 10, also known as the Swedish Derogation model, as a way to get around some of the new regulations. Many clients don’t understand the complexities of this process nor that specific requirements must be met for this to be possible.

It is probably best to first explain Regulation 10. Named after a concession gained by Sweden during AWR discussions, the Swedish Derogation model means that agency workers cannot claim their rights for equal pay if they are permanently employed by the umbrella company. All other equal treatment provisions, such as holiday leave, must still be respected.

The common misconception amongst clients, however, is that the Swedish Derogation model removes contractors from the ambit of AWR altogether. Therefore, clients are increasingly asking recruiters to move to the model in order to avoid the changes. The REC Drivers chair, Rod Harris, comments: “Whilst the majority of agencies are well equipped to move their temps onto Regulation 10 contracts where suitable, there is a mistaken belief amongst some clients that this is a simple step that fully removes workers from the scope of the regulations and one which can be adopted at no extra cost. Neither of these points are true, and recruiters across the country must come together to better educate clients as to the commercial and regulatory realities of the Swedish Derogation model.”

See the full story on the REC website
Read more about the Swedish Derogation model here

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CFC discusses ProSurance RES and vicarious liability

October 10, 2011 under all posts

Tom Chaplin, Recruitment Underwriter at CFC, explains some of the unique benefits of the vicarious liability clause included in its policy specifically designed for recruitment, staffing and employment agencies – ProSurance RES.

ProSurance RES includes professional liability, general liability, property, business interruption and crucially vicarious liabilty. Being a modular insurance policy, it allows firms to choose what cover they desire.

To learn more about vicarious liability and why it’s so important or to get more details on ProSurance RES, click here to email us.

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AWR could cost UK businesses £1.3bn a year – report

September 15, 2011 under all posts

AWR could cost UK businesses £ 1.3bn a year - reportAccording to law firm Allen & Overy, the Agency Worker Regulations coming into effect on October 1st could put half a million temporary employment contracts at risk. Recruiter.co.uk reports that a third of medium to large businesses in the UK will consider avoiding the increased costs of long term temporary contracts by terminating the contracts before the 12-week qualifying period.

The regulations were designed to protect temporary workers, giving them equal rights to those who perform the same job on a full-time basis. Many fear, however, that the changes could have the opposite effect but disincentivising businesses from taking on temporary workers. The estimated cost of these regulations to UK businesses could be in the region of £1.3bn a year.

Only time will tell. We will be keen to see the knock-on effect this has on recruitment agencies if it does indeed change the way businesses hire their employees.

See the full story on Recruiter.co.uk

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UK employees view social media as risk

September 14, 2011 under all posts

UK employees view social media as riskSocial media has changed business, from the way companies market themselves to the way recruiters find employees. But new research by global risk consultancy, Protiviti, shows that one in six employees believe corporate security is put at risk by social networking sites and 28% believe the sites to be a major risk to their personal security. In addition, the research discovered that more than a quarter of workers said more should be done to clarify how social media should be used in a working environment.

See the full story on Recruiter.co.uk

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Consumer safety might not always translate into employee safety

September 8, 2011 under all posts

Consumer safety might not always translate into employee safetyCompanies are forever trying to find ways to make their products better and safer. But a recent safety measure taken by Pacific Coast Producers has resulted in 43 of their workers being sent to hospital. The cleaning process used to make tomatoes safe to eat when used in things like pasta sauce backfired when chlorine gases were leaked into the air at the packing plant.

Although none of the injuries were severe, the California Department of Occupational Safety and Health (Cal/OSHA) has ordered the company to stop the use of the cleaning equipment until they can show it can be operated safely. In addition, Cal/OSHA has started an investigation into the employer and RUSH personnel, the employment agency that hirers workers for the plant.

This is the second time that Pacific Coast Producers has had trouble with their sanitising equipment. In 2007, machines provided by a different vendor got clogged with organic matter, causing chlorine gas to leak and ultimately caused 39 employees to go to hospital. Although the process is essential for consumers, the safety of employees will no doubt be raised as cause for concern for the company and its recruiter.

See the full story on www.scienceblogs.com

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