Weekly Employment Update - 14th September 2011

Radical changes to the rights of agency workers

Welcome to Ashfords' Weekly Employment Update, where each week we consider recent developments in Employment and HR issues. This week, we consider how businesses should be preparing for the implementation of the Agency Workers Regulations 2010.

Controversy over next month's fundamental changes to the rights of agency workers continued last week, with David Cameron rumoured to be considering moderating the new laws.  While the political debate continues, businesses should be aware of and prepared for these reforms.

At present, the Agency Workers Regulations 2010 come into effect on 1st October 2011, and will affect agency workers, employment businesses supplying temporary workers and businesses that hire such workers. 

The purpose of the regulations is to provide agency workers who have been working on the same job for a 12 week qualifying period with the same basic working and employment conditions (including pay and holidays) as permanent employees. In addition, from day one of any assignment, agency workers, like any comparable permanent employee, will be entitled to access employment opportunities within the hirer and to use its facilities, such as canteens, transport services and child care.

With 1st October fast approaching, it is important for hirers to assess whether any agency workers they currently use will qualify for the protection afforded by the regulations. Unfortunately, the regulations are not straightforward, particularly when calculating the 12 week qualifying period. Good news for hirers is that the qualifying period is not retrospective.

Under the regulations, temporary work agencies and hirers will also be obliged to share information on the conditions under which permanent employees work.  Hirers may, therefore, want to evaluate the current differences between the treatment of agency workers and permanent employees with a view to ensuring that, from 1st October, they are treated equally in accordance with the regulations.

This is a complex area of law and, at this stage, it is far from certain as to how the regulations will work in practice.  It should, however, be noted that any deliberate attempts to prevent agency workers qualifying for equal treatment may result in a fine of up to £5,000. With that in mind, both hirers and temporary work agencies should review their contractual documentation to ensure compliance with the regulations.

Ashfords LLP is regulated by the Solicitors Regulation Authority.  The information in this note is intended to be general information about English law only and not comprehensive.  It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.