Agency Workers to have Equal Rights with permanent staff

1st May 2008 Under proposals agreed between the Government, the TUC, and CBI, agency workers will soon be given equal rights as permanent employees after 12 weeks work.

The Government has been put under pressure by the Unions for some time to extend the rights of agency workers in the UK. Ministers now plan legislation for autumn 2008 to extend the rights of agency workers. As there is estimated to be nearly 1 ½ million agency workers in the UK, the proposals may have a significant effect on the UK workforce, and UK employers.

The view of the CBI is that the agreement is the “least worst of the options” available for employers. The CBI has raised concern over the reduction in flexibility in the UK labour market that the proposals may produce. The Federation for Small Businesses has also warned that if flexibility is lost as a consequence of these proposals that many small businesses will stop using agency workers.

However, the figures produced by the CBI suggest that half of agency placements do not exceed 12 weeks anyway. This suggests that the impact of the proposals may not be as significant to business as has been suggested.

The proposals do not require employers to provide equal treatment in every regard. For example employers will not be required to extend pension provision to agency workers under the proposals.

The proposals still hinge on an EU wide Agency Workers Directive being agreed, as only after that will the UK Government be able to put forward its own implementing legislation. It is currently intended that the Directive will be finalised in time for the UK Government to introduce legislation within the next parliamentary session.

Much of the detail will have to wait until the EU Directive is agreed. However, employers should now start looking at how this will affect their employment practices, and use of agency workers. If you need advice on this, and its impact on your business, please contact us.