NEW LEGISLATION - 31.03.2011

Agency workers: prepare for changes

New rights for temps. After some lengthy delays, the Agency Workers Regulations 2010 will come into force on October 1 2011. When they do, subject to some qualifying conditions, all agency workers must receive the same basic conditions as those employed by you in an “equivalent, directly-recruited, permanent role”.

Unprepared. Yet research recently conducted by Randstad has found that only 7% of companies have actually assessed how the Regulations will affect them and put measures in place to deal with their effects where problems have been revealed. As to be expected, those ahead of the game are blue chip companies with vast financial resources and experience at their disposal. Smaller firms, which use temps infrequently, are the least prepared. So what, if anything, should you be doing?

The good news. Agency workers will only gain the right to receive the same basic conditions as directly recruited employees once they’ve worked in the same role for twelve weeks. It’s only at this point that they must be given the same rights to: (1) pay; (2) overtime; (3) shift allowances; (4) bonuses; and (5) annual leave, as your own staff.

Consider your position. So where the company has no need for temps whatsoever, the directors can happily ignore these Regulations. If you only ever bring them in for less than twelve weeks, again, there’s no need to worry. But should the company have (or if the directors can identify) areas where temps are, or might be, used for this length of time, e.g. to cover long-term sickness absence or peak holiday periods, it should start looking at ways to limit their use now.

Tip. This will vary depending on your sector and business needs, but a policy of only hiring temps for less than twelve weeks, or insisting that the agency sends you a different one when this period draws to a close are both acceptable. Also, whilst it won’t suit every company, employing staff directly on short-term contracts may be cheaper in the long-run.