Recruiters could face civil penalties for breaches of a proposed code for the employment services industry released today.

The RCSA is seeking public comment on the Employment Services Industry Code (ESIC), which would provide a single national framework to regulate the recruitment and on-hire industry.

The ESIC will apply to all "employment services providers and to all dealings for the supply of an employment service", and a breach would be treated as a contravention of the Competition and Consumer Act, exposing companies to remedies including compensation and injunctions.

RCSA president Robert van Stokrom told Shortlist the ESIC is "significantly different" to the RCSA's code of conduct because it covers "everyone that plays in the employment services industry".

"Quite often we'll receive a complaint from either a host employer; a candidate that's applying for a role; [or] a member of the RCSA about the activities and behaviours of another employment company, and if that employment company... [isn't a member] of the RCSA, we're powerless to correct, indicate or even get involved in the behaviour because there's no constraints or no legislation governing [it]," he said.

"The big difference for us is that [the ESIC] does cover all stakeholders in the process and in the supply chain. That, for us, is essential for this industry to stop the kind of practice we saw on Four Corners."

The RCSA announced the ESIC in May following a Four Corners report on exploitative practices in the labour hire industry.

Under the ESIC, employment services providers must disclose the identity of all suppliers and customers in tiered supply arrangements.

"It'll improve the transparency by clarifying the role of employment services in a lot of the complex, multi-tiered or supply chain arrangements," said van Stokrom.

The ESIC will also govern the conduct of Australian providers operating offshore, including by requiring those companies' overseas agents to comply with the code.

Further, it will prohibit employment services providers from conducting background screening or suitability checks of jobseekers via social media without their permission.

Van Stokrom said that clause just reinforces existing legislation but noted its inclusion in the code was "debated quite vigorously".

"We've all got to realise the current privacy laws do prevent recruiters and employers from looking at candidates' social media unless they have their consent," he said.

"This provision helps everyone to know what's off limits and helps candidates remain in control of their private [and] personal information. There's a lot of argument as to whether some of that information is in the public domain or not, but people's Facebook pages, LinkedIn pages, Twitter [and] Instagram are not considered in the public domain. The privacy laws clearly state that."

Public consultation on the ESIC is open until August 14, and the RCSA is seeking feedback on whether the proposed code should be a mandatory or voluntary code.

How will the ESIC deal with disputes?

The ESIC will also facilitate the establishment of an Employment Services Industry Advisory Council to advise the Australian Competition and Consumer Commission (ACCC) and assist with the code's dispute resolution process.

The council will comprise an independent chairperson, three representatives from the employment services industry, an ACCC officer, one person from an "employee organisation", and an additional person who is either from outside the industry or also from an employee organisation.

The ESIC requires both employment services providers and their clients to agree to submit any code complaints to arbitration, as part of their employment services agreement.

Employment services companies must also appoint a "code compliance manager" – an internal or external representative who investigates and tries to resolve code complaints.

Any complaints must be addressed in writing to the code compliance manager, who then has 20 business days to investigate the complaint.

Complainants who are dissatisfied can escalate their concerns to the Employment Services Industry Advisory Council and seek to appoint an independent arbitrator.