If you’re reading this then you will be well aware of the impending changes to Agency Workers Regulations, but just in case Tecs Recruitment’s Andrew Hubbard looks at how the new legislation will affect the recruitment industry.
The new regulations derive from European legislation designed to give temporary agency workers parity in pay and employment conditions as they would have been entitled to had they been recruited by the hirer directly to do the same job.
You may also have noticed that AWR is also referred to as AWD. The Agency Workers Directive (AWD) become the Agency Workers Regulations (AWR) once they become law in October 2011.
Some experts are predicting that unemployment is set to rise significantly towards the end of this year as businesses actively scale back or completely cut their use of ‘temps.’
From October, the UK’s agency worker force, which is estimated to be around the 1.3million mark, will be entitled to the same pay and working conditions as permanent employees after just 12 weeks in a job.
Put simply this is only an issue if clients pay a lower rate, or do not offer the same working conditions to their temps.
As part of the agreement, temps will get the same holiday pay as regular staff, and pregnant agency workers will be entitled to paid time off to attend medical appointments and antenatal classes.
When researching this blog I found some figures indicating that one in five employers may cut their use of temporary workers to avoid the new legislation. If these figures prove to be accurate then it could tremendously damage the industry.
The Government has estimated it will cost businesses an extra £1.6bn a year to comply with the rules.
From a recruiter’s perspective the new legislation comes with mixed emotions. Operations Manager at Tecs Recruitment, Becky Sanders, said: “The agency workers directive will give recruiters and clients a more transparent relationship which isn’t the worst thing in the world.
“On the other hand though these new rules will offer no benefits to the clients and will undoubtedly have an adverse affect on the recruitment industry.”
There are added concerns that the new legislation could lead to hundreds of thousands of temps to sign on for unemployment benefits and compete with the estimated 2.45m already out of work.
Clients may look to get around the AWR by deciding not to engage agency workers beyond the 12 week qualifying period. There is nothing in the regulations to prevent an agency worker being released after 11 weeks or for assignments of 11 weeks to be the usual practice of any client.
However, clients and recruitment agencies should be aware of anti-avoidance provisions which address any situation where a pattern of assignments emerge that are intended to intentionally deny an agency worker of their entitlements.
For instance, if an agency worker completes two or more assignments with the same client, where they have already worked for 11 weeks with a six week break and then a further 11 weeks with another six week break.
If the agency worker is then taken on for a third time with the same client then it may be viewed as a deliberate attempt to avoid the completion of the qualifying period.
Agencies and clients need to ensure regular communication, not just as the new regulations become law, but afterwards to ensure the new legislation is being correctly observed and adhered to.
The legislation regulations can be viewed here.
