The DMA has recently welcomed DTI clarification of compliance levels expected of field marketing companies under the Employment Agencies and Employment Business Regulations 2003. Osborne Clarke employment partner Victoria Parry reports
The Conduct of Employment Agencies and Employment Business
Regulations 2003 (the "Regulations") & Field Marketing Companies
DTI provides clarification over level of compliance expected of field marketing companies
The uncertainty over whether the Regulations, in force since 6 April 2004, apply to field marketing companies has finally been resolved. The DTI has stated that if the client company employing the field marketing agency exercises no control over the worker delivering the promotional service, then the field marketing company is not covered by the Regulations.
As such, there will be no obligation on the field marketing company to adhere to the minimum standards that both client companies and workers are entitled to expect under the Regulations. As expressed by the Direct Marketing Association (UK) Limited in its news release this month “field marketing companies will be released from further complications to employment, and will be able to deliver the level of flexibility and productivity associated with this popular and highly effective channel of direct marketing.”
Two points, however, should be clearly noted. Firstly, if the client company does exercise any control over the worker delivering the promotional service, the Regulations will apply and the field marketing company would, therefore, have to comply with the Regulations. Secondly, the fact that a field marketing company falls outside these particular Regulations does not mean it is free of obligations under other legalisation which protects employees and other workers.