Negotiations are underway to limit the administrative and cost burden of the Temporary [Agency] Workers Directive (TAWD).

Tom Hadley, director of external relations at the Recruitment and Employment Confederation (REC), told Recruiter he was “pretty confident” that the Department for Business, Enterprise and Regulatory Reform (BERR) has been convinced to settle any disputes by tribunal, rather than having its inspectors visiting agencies.

“[If the TAWD was enforced this way] you would keep paper records, but if you’re confident the rate you’re paying is above [that paid to] the permanent employees, you wouldn’t have to worry about the increased administrative burden created by inspections.”

The Directive will give temporary workers the same pay and working conditions as permanent employees after 12 weeks on the job.

Initially the industry was worried a comparator would have to be established within the client’s company to establish a basis for equal pay and benefits. However, the European legislation on which TAWD is based contains no reference to comparators, and the subject appears to be a moot point.

“You shouldn’t have to compare temporary workers to someone already in the place of work,” he said.

Instead Hadley envisages including a question in clients’ contracts asking if the pay rate being offered to the temporary worker corresponds to what would be paid if the worker was hired directly.

The developments came last week after the REC met the minister for employment relations, Pat McFadden.

The government has until 2011 to implement the new legislation, under EU law. McFadden gave no indication of whether the government would wait until then, but he made it clear he was aware of the timeline, Hadley said.

A BERR spokesman assured Recruiter it would take steps to avoid unnecessary burdens and costs for business.

The next stage in the implementation of TAWD is to launch a public consultation, which will happen soon, the spokesman said.