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Agency Workers Directive Update

New MPs to review the agency workers directive

The REC has requested formal discussions with key members of the new coalition government, including both Vince Cable and Edward Davey, who now take up the role of secretary of state for business and business minister respectively.

According to the REC, one of the government’s first tasks should be a full and comprehensive impact assessment of the forthcoming Agency Workers Directive and in particular the important role that contractors, freelancers and temporary workers play within the UK economy.

A spokesperson from the REC said that the entire freelance marketplace is under threat from being over regulated. Both recruiters, contractors and umbrella companies are already struggling under the weight of excessive legislation and red tape.

The REC will make representations to new MPs over the coming months in an attempt to safeguard the future of the flexible labour market in this country.


AWD MYTH-BUSTERS

After 12 weeks will my temp become an employee of the user company and acquire the same rights as permanent employees?

No. They will still be a temporary worker. The Directive does not give temporary workers full employment rights. However they will become entitled after 12 weeks to the same basic hourly pay, holiday and holiday pay and entitlement to rest breaks as someone recruited to do the job on a permanent basis. Temporary workers will not be entitled to occupational sick pay, occupational maternity / paternity pay or entitlement to pensions.

Some temps get paid more than their permanent counterparts. Will I have to lower their rate of pay to match the rate paid to permanent workers?

No. If your temps are on a higher rate of pay than their permanent counterparts then their pay does not need to be lowered. However you will need to show that you have asked the employer what the rate of pay of a permanent worker would be.

Will temps covering permanent employees who are on leave be paid the same as them?

No. Temporary workers should be paid what they would as a permanent employee who had just joined the company rather than who they are covering. For example were a senior permanent employee to go on maternity leave and the position covered by a temporary worker they would not be entitled to the same pay. This is because the senior employee would probably be on a higher rate of pay due to their experience even if the temporary worker had joined as a permanent employee.

If a temp has been on my books for 12 weeks does this mean they’re entitled to equal pay?

Only if a temporary worker has been working for the same client for 12 weeks will they be entitled to equal pay. If a temp moves to a completely different role within the same client company this may count as a new assignment, although this is one of the areas where further clarification is needed.

Will the EU Directive mean that using temps becomes more costly and complicated?

If we get the implementation details right, the Directive should not have a negative impact on the use of temps. A high proportion of temps are paid on a par with permanent recruits and practical measures can be put in place to address concerns of additional bureaucracy. A key priority will be for agencies and employers to work together in order to prepare for new regulations.

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