It regulates the conduct of employment agencies which recruit and manage temporary and permanent labour.

The act came at the same time as similar reforms around Europe, for instance, the German Arbeitnehmerüberlassungsgesetz (Employee Hiring Law of 1972).

Instead, enforcement of regulations would rely on the Employment Agency Standards Inspectorate.

In 1999 the Employment Relations Act 1999 section 31 with schedule 7[3] empowering the Secretary of State to make further regulations affecting agencies and their workers.

The additions made in 2003 were few, primarily relating to confidentiality of information and candidate qualification checks.