Global Developments of Human Resource Services June, 2008 G. Hultin Caden Corporation S.A.

Global Developments of Human Resource Services – international lessons Legislation and regulation of private employment services Legislation and regulation of private employment services A historical perspective A historical perspective Current trends Current trends The range of private employment services The range of private employment services

ILO Convention 96 (1949) Called for the progressive abolition of fee-charging for profit employment agencies Called for the progressive abolition of fee-charging for profit employment agencies Where an fee-charging employment agency exceptionally is allowed, they Where an fee-charging employment agency exceptionally is allowed, they shall be subject to the supervision; shall be subject to the supervision; shall be required to be in possession of a yearly license; shall be required to be in possession of a yearly license; shall only charge fees fixed by competent authority; shall only charge fees fixed by competent authority; shall only place or recruit abroad if permitted by the authority shall only place or recruit abroad if permitted by the authority

International policy reform process ILO Convention 96 policy remained until s, ratifications peaked at 22% Growth of private services Policy denouncements in 1990s 1994 ILO policy reform process starts Recognizes the need for labour market flexibility Recognizes the positive contribution of private employment agencies for effective functioning of labour markets

Convention 181 (1997) Legalizes fee-charging employment services Legalizes fee-charging employment services Provides the legal framework and regulatory conditions for fee-charging employment agencies Provides the legal framework and regulatory conditions for fee-charging employment agencies Recognizes the workers rights in terms of inter alia Recognizes the workers rights in terms of inter alia non-discrimination, protection of personal data, freedom of association, collective bargaining, non-discrimination, protection of personal data, freedom of association, collective bargaining, minimum wages, working time and other working conditions; minimum wages, working time and other working conditions; statutory social security benefits statutory social security benefits Confirms principle of no charge to job seeker Confirms principle of no charge to job seeker Drops requirement service fees set by authority Drops requirement service fees set by authority

Liberalization of private employment services Source: ILO governments start labour policy reform to legalize private employment services Triangular employment relations remain subject of policy debate C181 ratifications increasing Process of liberalizing private employment services still on- going

Major issues for national level legislation How to ensure that temporary employees are fairly treated? How to ensure that temporary employees are fairly treated? How ensure that flexible forms of work do not replace permanent employment? How ensure that flexible forms of work do not replace permanent employment? How to ensure that employment and working conditions of regular jobs are not eroded? How to ensure that employment and working conditions of regular jobs are not eroded?

Restrictive Liberal Lifting of sector constraints + Extension maximum length of assignment (2004) Opening to permanent recruitment (2005) Legal recognition (1997), lifting of reason restrictions + opening to HR services (03) Legal recognition (2001) Lifting of sector constraints (2004), time limitations (2002) Extension maximum length of assignment (1997), lifting of sectors constraints (2001) Legal recognition (94), removal of extra costs (06) Lifting time limits and sector restrictions (98) Extension maximum length of assignment, opening to HR services (1999) Extension of grounds for use (2004) Germany Spain Portugal Belgium France Italy Poland Greece Japan Netherlands Finland Denmark Ireland UK USA Temporary agency work legislative and regulatory trends Source: CIETT

Temporary agency work % of total work force Source: CIETT Private employment agency Temporary work 0.1-5% of total workforce Europe, share of permanent placement doubled since 2001 Belgium, agencies are involved in 10% of permanent recruitment Netherlands, agencies handle 15% of permanent recruitment one fourth of the workforce in Belgium has at some point worked for a temporary work agency Among blue collar workers the number is even higher with about 50% having worked for an agency France, 65% of unemployed registered with private agency are gainfully employed with a year

Towards better functioning labour markets The makings of successful private employment business The makings of successful private employment business 1. Compliance with law 2. Adherence to industry and company code of conduct 3. Development of superior service To client companies To client companies To job seekers To job seekers