On the 1st October 2011 the Agency Workers Regulations 2010 are due to come into force. The time between publication of the final Regulations and them coming into force was intended to give recuitment agencies and hirers sufficient time to adjust to the new regulatory framework.
The regulations will give temporary workers who are placed by recruitment agencies with hirers a right to equal treatment namely that the basic working and employment conditions of temporary workers shall be for the duration of the assignment at a hirer comparable to those who had been recruited directly to do the same job.
Many business have survived the recession by engaging employees or workers on short term temporary contracts to increase flexibility and reduce employment costs. Under the Regulations after 12 weeks the agency worker will be entitled to equal treatment as to pay and conditions adding cost to business.
My collegues and I in the employment team have been giving a series of talks to the recruitment sector and hirers who engage temporary staff to meet seasonal demands or short term increased demands for their business. The key question that arises is who will pick up these additional costs, the agency or the hirer.
At present there are no guidelines for business with the introduction a little over 1 year away.
I recently attended a lunch on the 30 June for selected Herfordshire business with Miles Templeman head of the IOD who confirmed that business is concerned by the introduction of these regulations and that the IOD seeks to lobby the new Government over possible modification but the signs are that these regulations will be implemented, as the time for any legal challenge has passed.
At our recent conferences the following issues arose
- who will bear the cost of equal pay and employment conditions
- how will hirers provide increased benefits
- how will business re negotiate their commercial agreements
- will hirers minimise the use of temporary workers
- what are the implications for hirers and recruitment agencies who rotate temporary workers to attempt to avoid liability
- what systems do hirers have to put in place to ensure that they are alerted to the fact that the temporary worker has been engagaed for 12 weeks giving them the right to equal pay and conditions
- how will the employment tribunal calculate compensation and apportion liability between the agency and the hirer
- what are the rights of pregnant temporary workers and those on maternity leave.
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