The Government Procurement Service has committed to eradicating ‘pay when paid’ clauses in contracts between recruitment companies which supply staff, and Recruitment Process Outsourcing (RPO)/ Managed Service Provider (MSP) firms. It has signed up to the newly formed APSCode, a move that has been swiftly followed by a number of leading RPO companies including the world’s leading RPO provider, ManpowerGroup
The APSCode – created by APSCo (the Association of Professional Staffing Companies) - represents the interests of all parties involved in the Recruitment Supply Chain and seeks to address the uncertainty over contractual relationships between RPOs/MSPs and recruitment firms. The Code states that any contract drawn up between a recruitment firm and an RPO/MSP should include a backstop date at which payment to the recruitment firm must be met or allow a suitable recourse in the event of non-payment, such as contacting the end user client directly.
Matthew Griffin from the Government Procurement Service commented:
“The Government Procurement Service will be supporting the Code of Conduct as it aligns with much of what the Government is trying to achieve with regards to transparency and fairness for all parties in the Supply Chain. We will be asking those managed service providers that we engage with to support the Code. We will also be working on a sustainable model to speed up payments to days rather than months”.
Stephen Gilbert, UK RPO Practice Lead says: “ManpowerGroup is pleased to sign up to the APSCo RPO / MSP code of conduct which supports our on-going commitment to defining and shaping best practice across the RPO and MSP industry.”
Commenting on the new Code, and the support it has achieved, Ann Swain CEO of APSCo says: “ Historically, clauses such as ‘pay when paid’ and ‘non assignment of debt’ were causing major cash flow funding problems for recruitment companies. The new Code marks a huge step forward for those recruitment organisations engaging with RPO and MSP by addressing this issue. The endorsement by both the Government and a world leading RPO is testament to the strength and robustness of the Code of Conduct – a Code that will benefit all parties in the Recruitment Supply Chain.”
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Notes to Editors
The Association of Professional Staffing Companies (APSCo) is the UK’s leading professional recruitment industry body. APSCo provides a unified powerful voice for the professional recruitment industry and its membership which includes small specialist independents through to publicly quoted companies.
Other Companies signed up to the APSCode include:
Adecco, Alexander Mann Solutions, Allegis, Advanced Resource Managers, Capita Managed Services, Elemense, Hudson, Hyphen, Interquest Solutions, Project People, PRO Unlimited, Randstad Managed Services, Resource Solutions, Resource Solutions Group, STR and Volt.
Further information on RPOs/MSPs:
Recruitment Process Outsourcing Businesses and Managed Service Providers work with organisations to manage all, or part of, their recruitment by either targeting candidates directly or by managing relationships with select recruitment agencies.
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