HR: rogue modelling agencies - directors banned

The decisions by London Central Employment Tribunal follow investigations by the EAS, which is part of the Department for Business, Innovation and Skills (BIS).

Ifran Khan of Islington, London, ran Platinum Models and was banned for seven years whilst Michael Brown of Malaga, Spain, ran Target Models and was banned for five years. Khan operated Platinum Models from an address in Canary Wharf. Target Models traded in the Holborn area of London. Both judgements are effective from 1 August 2010.

The Tribunal heard how Platinum Models breached the law by:

charging fees to models before any work-finding services were provided;

repeated failures to provide the EAS investigators with the information they requested and obstructing the investigators in the exercise of their enforcement powers;

not operating a client account as required by the relevant regulations; and

issuing terms of employment to models that did not comply with the relevant regulations.

The Tribunal also heard how Target Models breached the law by:

deducting commission fees from payments due to models and charging a commission fee to hirers booking models;

holding payments to models for longer than 10 days;

failing to provide records that showed they recorded details of job requests from the hirer, records of booking details from the hirer, a copy of the terms issued to the hirer, or copies of applications from models;

paying money received on behalf of models into the business account rather than the client account; and

only issuing very basic terms of employment to models that did not comply with the relevant regulations.

EAS brought these cases under the Employment Agencies Act 1973. New regulations that protect workers come into force on 1 October 2010, which tighten the restrictions on the charging of up-front fees in the entertainment and modelling sectors.

Edward Davey, the Minister responsible for employment relations, said:

“Unfortunately there is a history of exploitation in some parts of the modelling sector by unscrupulous agencies but these verdicts should act as a warning signal to them. We will take action against rogue recruiters in London, and across the country, who flout the law and undermine the vast majority of agencies who play fairly.”

The Secretary of State for Business, Innovation and Skills (BIS) made an application to prohibit Ifran Khan and Michael Brown under Section 3A of the Employment Agencies Act 1973.