Facts of the case:
Talent Systems Europe Ltd (trading as Spotlight) operates an online directory through which performers, such as actors and musicians, can pay to upload and maintain their profiles for casting directors to view. Spotlight describes itself as a “Software as a Service” (SaaS) business.
A claim was brought against Spotlight by Equity (a trade union for performers) as well as several individual performers, seeking a declaration that Spotlight is an employment agency for the purposes of the Employment Agencies Act 1973 (EAA) and the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (Conduct Regulations).
The dispute:
The dispute related to the reasonableness of the fees charged to performers by Spotlight for inclusion in the online platform. The charging of fees by an employment agency to work-seekers is limited and controlled by the EAA and the Conduct Regulations, so it was necessary for the Court to determine whether Spotlight was an employment agency.
The Law:
Under the EAA, an employment agency is defined as “a business…of providing services (whether by the provision of information or otherwise) for the purpose of finding persons employment with employers or of supplying employers with persons for employment by them”.
Spotlight argued that their online directory did not exist to find work for performers, but to enable performers to promote themselves.
Decision of the Court:
The High Court found in favour of Spotlight, ruling that the directory is “a number of steps away from” a service for the purpose of finding people employment. As Spotlight does not vet, edit performers’ profiles, make recommendations to casting directors, act as a “middleman” in negotiations or manage money on behalf of performers, it was found not to be an employment agency.
The Judge drew similarities to other directory services like Checkatrade, Yell (formerly Yellow Pages) and LinkedIn, which all allow users to advertise their services but are not considered employment agencies.
Comments:
This case provides helpful clarification of what constitutes an employment agency under the EAA. It was emphasised by the Court that passive facilitation does not equate to active job-finding.
This decision is significant for digital platforms operating in the recruitment and employment space. As novel, tech-based business models evolve, the definition of a traditional employment agency becomes blurred. Businesses offering work-related solutions should seek legal advice, to avoid unpleasant surprises and ensure that their operating model is compliant.
First published on 23/09/2025 on FCSA’s main website https://fcsa.org.uk
