EU at final stage in paving way for future of temps

25-Jun-2008

The European Commission has come to a unanimous agreement on the Temporary Agency Workers Directive, breaking a five-year deadlock and paving the way for the future of temporary work.

The last-minute deal was brokered after the UK government offered a compromise to opt out of offering agency workers the same pay and basic conditions as fulltime staff from day one, and instead implement them after a 12-week period. The Commission has agreed that member states can derogate from introducing equal rights from day one.

The agreement on the length of the period was struck by the government’s social partners, the TUC nd the Confederation for British Industry.

The terms of equal rights are yet to be clearly defined, but will include equal pay and are likely to include holiday pay, sick pay, working time, information about permanent job vacancies and amenities which are available to comparable permanent staff.

Occupational benefits, such as contractual pension and statutory sick pay, will not be included.

However, the Recruitment and Employment Confederation estimates that establishing equal pay could cost the industry more than £10m a week if the Directive is not thought through. The REC has set up a commission to identify and mitigate potential risks.

Discussions with the government will focus on the scope of what equal treatmentcovers; how the comparator will be established; alternative dispute resolu - tions to avoid tribunals; rec - ognising the need to exempt limited company contractors; smaller employers, where there are no formal pay bands; and whether workplace agreements could be set up to derogate from the agreement.

Brian Stahelin, managing director of generalist recruiter Stafflex, told Recruiter: “Clients have consistently told me that they will reduce the use of temps without increasing their permanent workforce [if the Directive comes into effect].”

However, Dermot McGinley, chairman of construction recruiter McGinley, told Recruiter: “Regulatory controls make the industry more culturally acceptable.”

He said legislation will create a better understanding between clients and agencies and predicted it will benefit larger recruiters as preferred supplier lists are reduced. 

The Directive will be heard by the European Parliament who will vote on whether to ratify the legislation. If passed, it will probably become law in the UK in 2010.

christopher.goodfellow@centaur.co.uk