Industry holds breath as AWD becomes law
The legislation that will bring into effect the Agency Workers Directive and the biggest shake-up of temporary workforce regulation in years was expected to pass this week.
The end of the 40-day “praying period”, which gives MPs an opportunity to oppose the statutory instrument, was set to expire on Monday (15 March). At time of press a spokesperson for the House of Commons said it was “highly unlikely” anyone would stand in its way. urged recruitment professionals to start considering the effects of the legislation, which will give equal pay and selected benefit rights to temporary workers after 12 weeks, with the changes due to come into effect on the 1 October 2011.
Tom Hadley, external relations director at the Recruitment and Employment Confederation, told Recruiter it was important recruitment agencies and employers start to work together on how to address the issue, ahead of the date.
Kathrin Robinson, director of food manufacturer Pasta Verdi, told Recruiter the legislation would affect the company’s sporadic use of temporary workers.
“Anything which increases the administrative burden on small business is likely to have an effect. The 12-week rule is a problem; it will increase the expense of using temporary workers and we may have to go down a different route.”
Anything which increases the administrative burden on small business is likely to have an effect. The 12-week rule is a problem; it will increase the expense of using temporary workers and we may have to go down a different route.
Liability for meeting the directive’s requirements will lie with recruitment agencies in the first instance, as they hold the contract with the employee. Attendants at a seminar by law firm Irwin Mitchell heard that they will have to make “reasonable enquiries” to clients, to find out information and determine equal terms.
John Hayes, a partner at the firm, told Recruiter: “If they [recruitment agencies] take all reasonable steps to find out the pay structure, the liability can be shared with the employer. They will need to look at the terms and conditions in the contracts they have with their clients.”
Several issues with the implementation of the directive are yet to be defined, according to Hayes, who said the way performance-related pay would be given to temporary staff remains unclear.
Guidelines from the Department for Business Innovation and Skills, which will inform business on how they need to respond to the legislation, will be released shortly, according to a spokesperson.
