Employment Agencies and Employment Businesses are legislated by the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
Employment Agencies introduce workers to hirers for direct employment by the hirer. Employment businesses are suppliers of temporary workers to third-party hirers.
The Government's aim is to promote labour flexibility with protection for all workers whilst reducing bad practice. The regulations are intended to provide greater clarity and to ensure that businesses review their practices, procedures and documentation to reflect the changes.
More information can be found at http://www.berr.gov.uk/employment/employment-agencies/index.html