The Recruitment and Employment Confederation (REC) has backed the government's drive to protect employment standards.
Lewina Farrell, head of professional services at the organisation, explained that it sends a powerful message to people considering flouting regulations.
She made her comments after a recruitment agency director was penalised for withholding money from staff, with the executive being banned from running an agency for seven years.
Ms Farrell suggested such penalties will act as a deterrent, adding: "We fully support the enforcement drive. Agencies that mistreat workers and flout regulations are often able to undercut legitimate, law abiding providers."
The REC spokesperson also noted the organisation intends to work closely with the state to stamp out bad practices in the recruitment sector.
This week, the institution published its Report on Jobs for October, which showed the availability of temporary and contract staff grew at its highest rate for seven months, while overall demand slowed.
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