APSCo warns of unlimited liability risks

06/07/2009 11:24:03

Recruitment firms have been warned against accepting unlimited liability for risks which cannot be insured as the recession ensues.

The Association of Professional Staffing Companies (APSCo) says an increasing number of end users are seeking to pass on risks to staffing firms thorough contractual clauses – even though they, unlike the recruiter, are able to insure themselves.

Consequently, companies providing hospitality and catering recruitment could be left exposed in the event of injury or death of workers, theft of client users' property or should an employee claim against the hirer.

Marilyn Davidson, director of APSCo, said end users were seeking to mitigate unpredictable costs by pushing risks onto recruiters.

She stated: "This has become a major issue for the recruitment industry over the last few months.

"Recruiters need to think carefully about agreeing to risks which could give rise to additional costs that have a significant impact on already squeezed margins."

Kevin Green, chief executive of the Recruitment and Employment Confederation, recently claimed recruitment agencies should be rising to the challenge of finding work placements for staff as the recession ensues.

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