A Court of Appeal ruling that agency workers are not entitled to statutory sick pay (SSP) if they are engaged for less than three months is expected to benefit the recruitment industry.

Matthew Tom, an employment lawyer with Blake Lapthorn Tarlo Lyons, told Recruiter: "This has to be good news for those agencies who supply short fixed-term temporary workers. It should encourage better attendance and cut costs."

Tom's view comes after the court ruled in favour of Nottingham-based construction recruiter Thorn Baker following a case brought by Her Majesty's Revenue and Customs (HMRC). HMRC challenged Thorn Baker after they refused to pay SSP to two agency workers, who had worked for them for one month and two months before falling ill and claiming sick pay.

Their challenge was on the wording of the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 which, while specifically excluding agency workers, purported to change the law relating to eligibility for all workers to claim SSP under the Social Security Contributions and Benefits Act 1992.

However, the Court of Appeal ruled that it would not be logical for an amendment to apply to agency staff, as the regulations were not meant to apply to agency workers initially.