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Equal rights for Agency Workers
21 May 2008
Within the last few days and after years of protracted debate the Government has agreed a deal between the CBI and union officials on how equal treatment for agency workers should be achieved.
Under the proposals agency workers will be entitled to the same basic employment conditions as normal employees who have been directly recruited, such as the same pro-rata pay and other working conditions.
While rights to benefits that tend to be linked with longer term service such as sick pay and pensions are unlikely to be included, overtime and other employee benefits could be.
The entitlement to equal treatment is to kick in after 12 weeks in the job.
Anti-avoidance measures will be introduced to prevent employers evading the regulations. For example, there is a concern that employers may use repeat contracts for the same worker or change the employee's job description just before the 12 week deadline to prevent the worker from receiving equal treatment. A mechanism for resolving disputes that would inevitably arise in relation to compliance with the new rules will also be created.
The declaration by the Government reflects a compromise between employer and employee interests in terms of achieving a reasonable amount of flexibility for employers and fairness for agency workers.
The Government now anticipates being in a stronger position to negotiate an opt-out of the European Union Directive on agency workers by implementing its own regulations which are consistent with it. This approach has been welcomed by employers, particularly the CBI.
There will be further consultation on how the new rules will be implemented in the months to come. The Government hopes to seek approval of the agreement with its European partners in time for the necessary UK implementing legislation to be introduced into the next parliamentary session.
If you would like to speak to one of our employment team about this or any other employment matter, please contact Nick Hall in our Northampton Office or Elizabeth Swinburn in our Cambridge Office.