Understanding the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (as amended)
Hiring agencies play an essential role in the UK screen industries, connecting candidates with productions quickly and efficiently. However, these relationships are subject to legal obligations that are often overlooked, particularly by smaller or informal intermediaries.
This explainer sets out the core duties under the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the Conduct Regulations), which are designed to ensure fair treatment, transparent pay, and proper protections for freelancers, casual workers, and other short-term hires supplied through agencies.
An employment agency finds candidates for permanent or fixed-term jobs. The person is employed by the production company or studio.
An employment business supplies freelance workers on a temporary basis, often on daily or short-term contracts. These workers may be employed or engaged by the agency itself and then placed with a hirer (for example, a production company).
In the screen sector, many agencies act as both employment businesses and employment agencies, booking short-term freelancers for daily roles while also introducing candidates for longer-term or in-house positions. It’s important to understand which rules apply, especially where candidates are not directly engaged by the production business.
1. No fees for finding work
Agencies must not charge workers for placing them in a job, except in a few narrowly defined areas (like modelling or entertainment representation).
Example: A freelance editor must not be charged a sign-up fee or commission simply for being introduced to a post-production company.
2. Written terms before work begins
Agencies must provide work-seekers with written terms of engagement before offering them any work. This includes pay rates, notice periods, how they’ll be paid, and holiday entitlement.
Example: A hair and makeup artist booked for a music video shoot should receive written terms detailing their pay, working hours, and cancellation policy before accepting the job.
3. Key Information Document (KID)
Employment businesses must give a Key Information Document to workers before any terms are agreed. This short document must explain:
The minimum pay they’ll receive
Any statutory or non-statutory deductions (e.g. tax or umbrella company fees – see next paragraph for more on umbrella companies)
An example of how these deductions affect take-home pay
About umbrella companies:
Some agencies outsource payroll to umbrella companies, which act as intermediaries between the worker and the end client. The worker is technically employed by the umbrella company, not the agency. While this can simplify tax and insurance processes, it often comes with admin fees or 'margins' deducted from pay.
Example: A camera assistant paid via an umbrella company may receive less than expected due to weekly admin charges. The KID must explain this clearly in advance.
4. Clear job details from hirers
Agencies must collect key information about the role before introducing or supplying a candidate. This includes:
Job title and description
Start date and duration
Location and hours
Rate of pay
Health and safety risks
Any required training, qualifications or PPE
Example: A lighting technician sent to a night shoot must be informed in advance about start times, working conditions, and whether high-vis or safety boots are required.
5. Suitability checks
Before supplying a worker, agencies must take steps to ensure they’re suited to the role, particularly where specific qualifications or legal clearances are required.
Example: A drone operator working on a shoot involving aerial footage may need CAA (Civil Aviation Authority) approval or specialist certification. The agency must verify these credentials before confirming the booking.
6. Transfer fees and extended hire
Agencies may charge a transfer fee if a production company hires one of their workers directly after being introduced. However, they must:
Clearly include this in the terms of business with the hirer
Offer an extended hire period as an alternative
Example: If a production company wants to rehire a runner they first booked through an agency, they can either pay a fee or continue hiring them via the agency for an agreed period, after which no fee applies.
7. Record keeping
Agencies must retain records of their interactions with both work-seekers and hirers for at least 12 months. These should demonstrate compliance with all relevant regulations and be made available on request.
Remember: These duties apply regardless of whether the worker is on set for one day or one month. If they are supplied through an agency, the Conduct Regulations apply.
The freelance, project-based nature of the screen sector means agencies often play a gatekeeping role for jobs. Many workers rely on agencies to access opportunities, especially at short notice. If regulations are not followed, the result can be confusion, underpayment, or legal risk for everyone involved.
If regulations aren’t followed, the impact can be significant:
Confusion: Inaccurate or missing information about pay, deductions, or working arrangements can leave workers unsure of what they’ve agreed to, affecting morale and trust.
Underpayment: Without clear Key Information Documents or transparency over umbrella deductions, workers may receive less than expected. This can damage reputations and lead to disputes.
Legal risk: Businesses that rely on agencies to source talent may unknowingly end up in breach of employment law if suitability checks haven’t been carried out properly, for example, if a worker lacks the necessary legal clearances or certifications.
Delays and disruption: If a worker walks off set or cannot perform due to miscommunication about terms or role expectations, productions may face costly rescheduling and delays.
Ultimately, following the rules isn’t just about legal compliance, it helps ensure smooth, fair, and professional working relationships across the production chain.
Example: A runner is booked through an agency for a two-day shoot. They are verbally told they'll earn £130 per day, but after the job, they receive £105 per day. It turns out the agency paid them via an umbrella company that deducted fees, something the runner was never informed about in writing.
This could constitute a breach of the Conduct Regulations if:
No Key Information Document (KID) was provided
Terms were not properly agreed in writing
Deductions were not clearly explained in advance
Why this matters for screen businesses:
Even if the production company or hiring business was not directly responsible for the agency’s actions, reputational and operational risks still arise:
Damage to reputation: Word travels quickly in the freelance community. Being linked to poor agency practices can deter future crew from working with you.
Crew dissatisfaction and dropouts: Unexpected deductions or unclear pay can lead to frustration, walk-offs, or refusals to return, especially on multi-day shoots or longer productions.
Legal exposure: In some cases, businesses may be held jointly responsible if they benefit from a worker's services while knowing that the agency has not met its obligations.
To minimise these risks, screen businesses should work only with reputable agencies, request confirmation that KIDs have been issued, and ask questions about pay arrangements, particularly where umbrella companies are involved.
When working with an agency to book freelancers, casual workers, or other short-term crew, certain warning signs may indicate that the agency is not meeting its legal obligations. This can lead to operational issues, payment disputes, or reputational damage for your production.
Watch out for:
• Workers arriving without a written contract or clear understanding of their pay — this can lead to confusion, complaints, or early departures from set.
• No transparency over pay arrangements or umbrella companies — if the agency can’t clearly explain how workers are engaged and paid, you may be relying on a non-compliant supply chain.
• Agencies claiming to “handle everything” without offering key details — vague communication can hide improper deductions, poor documentation, or legal non-compliance.
• Complaints from workers about lower-than-expected take-home pay, especially if they weren’t informed about umbrella deductions in advance.
• Being told that all workers must use a particular umbrella company with no alternatives or clear justification, this can be a red flag for exploitative practices.
If these red flags arise, it’s worth investigating further or reconsidering the agency relationship. While the legal duty sits with the agency, your production may still face disruption, reputational harm, or complicity in poor working practices.
The Employment Agency Standards (EAS) Inspectorate is responsible for enforcing these rules in Great Britain. It investigates complaints, carries out audits, and can take enforcement action against non-compliant agencies.
Further Reading and Resources