Posts Tagged ‘ Agency Workers Directive ’

Ed Miliband comments about agency workers misleading

p37airportREUTERS

Responding to statements made by Labour leader Ed Miliband about Agency Workers Regulations in a column in yesterday’s Independent on Sunday, Recruitment and Employment Confederation chief executive Kevin Green says:

“It is wholly misleading of Ed Miliband and the TUC to describe pay between assignment contracts (PBA), also known as Swedish Derogation, as a loophole or as anything to do with immigration.

“These arrangements are part of the 2010 Agency Workers Regulations that were agreed following consultation between the last Labour government, business and the unions and apply to British and non-British workers. Workers on PBA contracts are employed by their agency on a permanent basis, giving them greater security and all the benefits that come with permanent work such as protection from unfair dismissal, maternity leave and statutory redundancy pay. Is the Labour party really saying they want to deny British temps the option of permanent employment?

“The pledge to ban recruiters from only advertising vacancies overseas is a ridiculous straw man. It is already illegal to do this. Ed Miliband has made this accusation against our industry before, we have asked to see any evidence that it is occurring and he has failed to produce any. It’s an unwarranted slur on the UK’s professional recruitment businesses who helped more than 600,000 people find new permanent jobs last year and on any given day place 1.1 million temps into work.”

2014
01/06
CATEGORY
Uncategorized
TAGS






Leave a comment

AWR two year anniversary, what impact has there been?

Author Tom Hadley, Director of Policy & Professional Services

This week marks the two year anniversary of the Agency Worker Regulations (AWR) coming into force. Most recruiters are pretty tired of hearing those three letters but let’s take a deep breath and take stock of how equal treatment measures have impacted.
awr

Based on our monthly data and the latest feedback from REC members, here is our assessment of how the industry and the temporary work market has responded:

• There has been little or no impact on the overall demand for temporary and contract staff – This was always the major concern – i.e. that the regulations would create so much additional cost and uncertainty that employers would simply stop using agency staff. The fact that this hasn’t been the case is to a large extent due to the proactive approach to implementation and client awareness that recruiters demonstrated.

• The latest data is extremely encouraging – The latest REC/KPMG Report on Jobs shows temp billings rising at the strongest rate in over 15 years. Looking ahead at future hiring intentions, the REC’s JobsOutlook shows that 96 per cent of employers plan to increase or maintain their temporary workforce over the coming year.

• Although demand has remained strong, the AWR created significant cost for recruiters – This has been in the form of increased training and HR costs, putting the right tracking systems in place and awareness-raising activities amongst clients and workers. Larger recruiters have estimated that the cost of implementing AWR runs into six figures. Most recruiters estimated the overall cost of implementation has been between 5k and 20k.

• There is an on-going need to raise awareness of the regulations amongst employers – One of the major challenges flagged by REC members is that employers have not always co-operated in terms of providing the right information on pay. The regulations are still seen as an ‘agency issue’. This is something we will continue to drive through our ‘client awareness’ activities and our work with representative bodies such as the CBI and CIPD.

• The 12 week derogation period has not increased ‘churn’ of temporary staff – Feedback from recruiters confirms that initial concerns over employers systematically terminating assignments after 12 weeks have not been borne out. Initial data suggested a very marginal decrease in the average length of assignment, but this was most likely linked to the economy rather than AWR. Some recruiters have actually reporting an increase in the length of employment.

• The predicted surge in tribunal activity has not materialised – This is something that we will continue to monitor closely – in particular through continuing discussions with ACAS – but so far, so good. Recruiters have played a key role by raising awareness and addressing any misconceptions amongst workers.

• The political debate will rumble on – The Trade Unions will continue to hone in on ‘pay between assignment’ models. The recent Labour Party conference confirmed that we have a real challenge on our hands in terms of addressing residual mistrust of any form of work that is not permanent, full-time work.

In summary, our ‘elevator’ pitch on the impact of the AWR is that we could have done without it – especially as there has been a significant cost for our sector – but that the on-going benefits of temporary and contract work for business and for workers have generally outweighed initial concerns over how the regulations would play out.

Our priority now is to drive a good practice agenda in terms of how businesses manage their flexible workforce and how they engage with their recruitment partners. As part of this, we will build on one of the ‘collateral’ benefits of the whole AWR saga – the fact that it demonstrated our industry’s ability to step up to the plate and make things work on the ground.

2013
10/04
CATEGORY
Uncategorized
TAGS


Leave a comment

Just four percent of employers cut back on temps because of AWR – REC

Only four percent of employers reported that they had reduced their use of agency workers in direct response to the Agency Worker Regulations, according to on-going analysis of the impact of the one-year-old rules conducted by the Recruitment and Employment Confederation (REC).

Further findings from the REC’s Industry Research Unit that have been sent to new Parliamentary Under Secretary of State for Employment Relations Jo Swinson ahead of a meeting later this month include:

• Only one in 10 employers had stopped or significantly decreased the use of temporary staff in the seven months to April 2012. (A further 18 percent said they had marginally reduced their use of agency workers.)
• Of the 28 percent of employers who said they had in any way reduced their use of agency staff, two thirds said it was because of continued economic uncertainty and weak growth.
• Overall satisfaction with being a temporary worker increased from 43 percent to 52 percent in the first seven months of AWR’s implementation.
• Employer satisfaction with staffing agencies remains high, at 92 percent.

REC CEO Kevin Green says:
“One year in it’s clear to us that there have been only limited problems for businesses, some real positives for workers and that it’s recruitment agencies across the UK who have really absorbed the administrative burden and costs associated with the implementation of the new rules.

“Of the minority of employers who reduced their use of temps most of them made that decision because of the wider financial climate, rather than it being a knee-jerk reaction to the new regulations. So it makes sense that demand for agency staff will pick up as growth returns. In fact, our latest data shows that there’s already been a turnaround and the outlook for temps is starting to improve despite the fact we’re still officially in a recession.

“Jo Swinson has a key decision to make about the future of these regulations. The government should either hold a substantial review which looks at all the relevant issues including pay, assignment lengths, bonuses – or they should leave it alone. What we don’t want is businesses’ time and energy being wasted on a partial review that upsets the current system, creates uncertainty and could risk interfering with the work of agencies and employers making effective use of temporary staff and keeping the temporary labour market buoyant.”

2012
10/01
CATEGORY
Agency Work Regulations
Press Release
TAGS





Leave a comment

Guide to the new Agency Workers Regulations

Anyone working through a recruitment agency, who is under the direct supervision and control of the hirer, will fall under the scope of this legislation which comes into force on 1 Oct 2011.

This will also apply to individuals who have their own limited company (PSC) and whose working practices fall inside IR35. It is widely believed that the AWR reinforce the IR35 legislation and will therefore strengthen HMR&C’s case against those whose contract is not an accurate reflection of their working practices.

The latest guidance, issued in June 2011, states: “If the arrangements do not reflect the reality of the relationship (e.g. despite the wording of the contract, the actual reality is that the individual is not in business on their own account and they work under the supervision and direction of the hirer) or are an avoidance tactic, then individuals are likely to fall into scope of the Regulations. Unlike the Conduct of Employment Agencies and Employment Businesses Regulations there is no opt-out from this legislation; the only exemption is from Section 5 which relates to equal pay and this is only if your preferred umbrella company has implemented the Swedish Derogation model.

Contractors are already entitled to a range of statutory protections, whilst working through ’contractor umbrella’, provided by the Working Time Regulations, national minimum wage legislation etc. This new legislation is intended to give additional protection and rights equal to those of permanent employees in comparable positions.

Some of the rights are available from day one at a client’s site and concern accessibility to site facilities and information on job vacancies. Ensuring that these provisions are made is the responsibility of the hirer who will be liable for any breach of the obligation. For instance, if the company has parking facilities which are available to all its employees, those facilities would also need to be made available to temporary workers.

However, it does not mean that they would be entitled to preferential treatment so, if the company had only five parking spaces, which were available to the longest serving members of staff, the temporary worker would not be able to jump the queue. The client or hirer is not obliged give access to off-site facilities which they do not directly provide such as subsidised gym membership or the opportunity to purchase discounted company goods.

The legislation is not intended to give enhanced rights but to ensure that treatment should be ’no less favorable than a comparable worker’ i.e. one doing the same or a similar job at the same location. The types of facilities that should be made available from the first day at a client site typically include; Canteen facilities, a workplace crèche, bathroom/shower facilities, staff common room, mother & baby rooms, prayer rooms, food and drinks machines. The hirer is also obliged to provide information about any relevant job vacancies that the client has that would be made available to a comparable worker. Again the intention is not to give preferential treatment and the client will still have complete freedom with regard to qualification or experience requirements and how applicants are treated.

The right to information will not apply when there is a genuine headcount freeze or when internal moves are required to restructure or avoid redundancy. The legislation makes other new rights available after a qualifying period of 12 weeks, with the same client, in the same role: Duration of working time night work, rest periods, annual leave, paid time off for ante-natal appointments The 12-week period refers to 12 calendar weeks irrespective of how many hours are actually worked in that seven-day period. The qualifying period is also not altered by a change of employment agency; it refers solely to the time spent working at a particular client site.

The qualifying period should be ’re-set’ when a new assignment begins for a new client or when a new assignment begins for the same client but in a new role or when there is a break between assignments of six weeks or more. Breaks of more than six weeks may sometimes merely ’interrupt’ the qualifying period e.g. sickness or annual leave.

The qualifying period cannot be broken by moving from one site to another within the same company unless the role is completely different. After the qualifying period has been completed pregnant temporary workers will be entitled to take paid time off for antenatal medical appointments and antenatal classes.

In cases where the original assignment cannot be completed for Health and Safety reasons it will be necessary for another assignment to be found. Under certain circumstances it may be necessary for the client to carry out a risk assessment to determine whether or not the role is still appropriate. If a risk assessment determines that the original placement is unsuitable, a suitable alternative must be offered and cannot be unreasonably refused. If an alternative role cannot be provided by the Employment Agency, they will be obliged to pay the contractor at the same rate for the duration of the terminated assignment.

Swedish Derogation model

Where appropriate, the Swedish Derogation can be applied by umbrella companies; a rather strange name given to an agreed opt-out from section 5 of the regulations, which relate to equal provision of pay. The worker enters into a permanent contract of employment with the umbrella company who is then responsible for paying the contractors’ salaries and for maintaining continuity of assignments.

This obviously restricts liability for employment agencies and ensures a closer working relationship between recruiters and umbrella companies. To guarantee full compliance with the new legislation the contract of employment must be signed and returned to the umbrella company any assignments commence.

The Contract of Employment will include the following information: Client details minimum pay rates and their basis of calculation Location of work, reflecting where you will be willing to travel.

Minimum and maximum expected hours

The nature of the work to be undertaken The Contract will also contain a statement which confirms that the individual becomes an employee of the umbrella company and therefore accept the exemption from section 5 of the agency worker regulations which relates to equal treatment provisions on pay.

The rest of the new legislation will still apply to which means individuals will have entitlement to equal treatment in respect of duration of working time, night work, rest periods, rest breaks and paid annual leave.

Under the contract of employment with the umbrella company there will also be entitlement to statutory maternity pay, paternity pay, adoption pay and sick pay.

2011
06/07
CATEGORY
Industry Report
Press Release
TAGS




Leave a comment

Final BIS guidance signals need to step up planning for AWR, says REC

The Department for Business, Innovation and Skills (BIS) has published the final version of its guidance to accompany the Agency Workers Regulations, four months before the new rules come into force on October 1.

The previously released guidance has been edited and re-issued due to the need for additional clarity on key issues, including the ‘Pay Between Assignments’ or ‘Swedish Derogation’ model.

The REC urged agencies and hirers to consider the publication of the final guidance as a reminder to begin planning in earnest for AWR, if they have not already done so.

Commenting on the new guidance,  Gillian Econopouly, the REC’s Head of Policy, said:

“Whilst we did not  get all the improvements we had hoped for, several issues have been clarified within the guidance and we are pleased that BIS has taken into account some of the critical questions raised by REC members.”

These include further clarification about in-house banks, which explains the impact of the Conduct Regulations; asserting that the 12-week clock is only re-set by breaks of more than six  weeks (rather than six weeks or more); and a clear statement on workers placed in a permanent job being completely out of scope.

However the REC cautioned that concerns still remain, in particular about the ‘Pay Between Assignments’ or ‘Swedish’ derogation. The latest guidance indicates that workers on a Pay Between Assignments contract are entitled to equal treatment in relation to working time and annual leave, after the 12 week qualifying period. This means that under such a model, the worker’s entitlement to leave over and above the statutory minimum is entitlement to the leave only and not to payment for the leave.

Gillian Econopouly added:

“The clarification on annual leave entitlements under the Pay Between Assignments (Swedish Derogation) model could make those who considered this as a possible option think again about the commercial impact.

“Whilst in one way this helps make the rules clearer, the requirement for such contracts to be subject to a minimum of one hour per week remains muddy, and could have been much more explicit. Some recruiters may also be disappointed that the provisions for ending a pay between assignments contract have not been further clarified.”

She concluded:

“However, it is important to remember that guidance does not have the same legal weight as the actual regulations, so it must be viewed in this context. No guidance document will ever provide all the answers, so what is important now is that agencies work with their clients to assess the likely impact of AWR and put plans in place for October.

“This will not only help minimise the disruption to each business, but can also create a positive advantage for agencies who can demonstrate their understanding of AWR and a clear plan for managing it in their agency.”

2011
06/02
CATEGORY
Industry Report
Press Release
TAGS



Leave a comment

Agency Workers Regulations Guidance published

The Government has published guidance to help recruiters and employers prepare for the introduction of the Agency Workers Regulations.


The guidance, which has been produced in partnership with a wide range of businesses, trade unions and recruitment agency representatives including the REC, will help agencies and hirers understand the requirements of the Regulations. Separate guidance for agency workers will be published shortly.

The Regulations implement the EU Agency Workers Directive as agreed by the Government in 2008 following social partner agreement between the CBI and TUC and come into force in the UK on 1 October 2011. They will give agency workers the right to the same basic employment and working conditions as if they had been recruited directly by the hirer – if and when they complete a 12 week qualifying period in a job.

Ed Davey, the Employment Relations Minister, said:

“The agency sector is a key part of the UK’s flexible labour market.  It provides the flexibility needed for employers to meet surges in demand, cover temporary absences or cope with seasonal fluctuations and provides a route into employment for thousands of individuals.

“The Agency Workers Directive was agreed under the last Government following negotiations between the CBI and TUC and the Regulations were on the statute book before the election. We looked carefully at the possibility of amending the Regulations to address employers’ concerns but were forced to conclude that we could not do so without putting the 12 week qualifying period at risk. This qualification period is something that is a key flexibility that we know is vital to business.

“Our focus therefore has been on providing the best possible guidance to help everyone affected understand these regulations. We have collaborated with key organisations including employment agencies, employers, trade unions and representative bodies to develop this guidance and I believe the resulting document will help prepare everyone for the forthcoming changes.”

Kevin Green, the REC’s Chief Executive,  said:

“There has been a genuine effort to take on board the concerns of recruitment agencies and to clarify how these regulations will work in practice. Agency work plays a vital role within our economy. Limiting bureaucracy and uncertainty will ensure that it continues to benefit businesses and job-seekers.

“Implementation will create some challenges, but the regulations do not fundamentally impact on the crucial flexibility that agency work provides. The publication of the guidance is the latest milestone – it is now up to agencies and employers to come together and make it work.”

Taking on agency workers

Using agency staff can be ideal, especially when you need emergency temporary cover. It can cost more than employing a temporary staff member directly, but a big benefit is that all of the administration is handled by the agency.

The business usually pays the agency and the agency pays the worker. The rate an agency would charge your business could also include elements of National Insurance payments, holiday pay and sick pay, as well as an administration fee and profit margin.

It is the agency’s responsibility to meet requirements such as paying the worker at least the national minimum wage, but do some research to ensure you are happy with the agency’s reputation. Any poor experience the worker has – such as not getting paid on time or the right amount – could reflect badly on your business.

By law, employment agencies must comply with the Employment Agencies Act 1973 (as amended) and the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (as amended). These regulations stop them, for example, from charging workers fees for finding jobs. They must also ensure a worker has any qualifications legally required to do the work. Download guidance on the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (as amended) from the Department for Business, Innovation & Skills (BIS) website (PDF, 162K) – Opens in a new window.

Even though agency staff do not work directly for you, you are still responsible for their health and safety. In fact, they are likely to be at greater risk because they don’t know the business well. See our guide on agency workers’ health and safety for more information. Find out about your health and safety obligations on the Health & Safety Executive website

You must also comply with rules such as the Working Time Regulations and ensure temporary employees get the rest periods they are entitled to. See our guide on hours, rest breaks and the working week.

Subjects covered in this guide

2011
05/06
CATEGORY
Industry Report
Press Release
TAGS



Leave a comment

Key dates: Employment law changes expected in 2011

Recruitment consultancy IntaPeople lists the key employment law changes of 2011 and the dates they are expected to come into force – essential for any human resources professional, line manager or business owner keen to keep up with the looming changes.


April 3

– Fathers can claim up to six months’ of the mother’s maternity leave provided she returns to work, under new Additional Paternity Leave arrangements. The new right is granted to fathers of children due on or after 3 April 2011. The extra leave is in addition to the current two weeks’ paternity leave entitlement.

April 4

– Single Equality Duty for public bodies comes into force, replacing the current separate duties for race, disability and gender, and including other grounds such as sexual orientation and religious belief.

April 6

– Default retirement age set to be abolished. Employers no longer able to issue notifications for compulsory retirement using the DRA procedure. Some employers may be able to objectively justify why certain workers should retire, such as those in the police force or construction industry.

– Personal allowance for income tax for basic rate tax payers under the age of 65 will be increased by £1,000.

– Employers’ national insurance contributions increased by 1pc to 13.8pc. National Insurance Contributions will also be increase by 1pc for employees, and the primary threshold increased by £570. Threshold at which employers pay National Insurance raised by £21 per week.

– Employees of companies with fewer than 250 employees are granted statutory right to request time off for training or study. Already in place for businesses with more than 250 employees, the change means employers have to seriously consider any training requests received.

Also in April (date TBC)

– Right to request flexible working extended to parents with children under 18, one year older than present. Employees must be employed by the same business for 26 weeks or more before they are eligible.

– Bribery Act 2010 comes into force, introducing a new corporate offence of failure to prevent bribery by employees, agents, or other “associated persons” working on behalf of a business. This is unless a business can show that it has adequate anti-bribery procedures in place.

October 1

The Agency Workers Regulations 2010 will give agency workers the same basic employment conditions as permanent employees after just 12 weeks on an assignment. This will relate to pay, holidays and other conditions of employment.

IntaPeople is an independent recruitment consultancy, providing permanent and contract staff throughout the UK, Europe and Middle East.

2011
02/15
CATEGORY
Equality Act 2010
Recruitment
TAGS



Leave a comment

REC launches Your AWR Advisor programme

The REC is launching one of the most extensive support programmes it has ever mounted. It is focused on helping REC members prepare their businesses, staff, clients and temporary workers for the implementation of the Agency Workers Regulations on October 1 this year.


The programme, Your AWR Advisor, comprises a wide range of guidance services and products, all of which are available exclusively to REC members. The package includes webinars, an extended AWR tool kit, client packs, sector-specific briefings, model documents, legal support and in-house training for frontline consultants.

The next AWR webinar will be held on Monday February 21 and the AWR will also be one of the main topics of the REC’s Compliance Summit on April 7. A similar package will also be available for IRP members.

The REC is currently working closely with the Department for Business Innovation and Skills on the development of the Government’s official AWR guidance document which is likely to be finalised in April. The REC has launched this programme now to enable recruiters to start preparing now and to provide a suite of practical services to ease the implementation of equal treatment measures.

Commenting on the launch of Your AWR Advisor, Kevin Green, the REC’s Chief Executive said:

“Following a decade of lobbying in Westminster and Brussels, we are fast approaching the final stretch.   The next nine months will be crucial in terms of implementation.

“As well as continuing to work with Government on the official guidance, our aim is to minimise the impact on recruiters and their clients. The programme we are launching today will ensure that every single REC member can get to grips with the necessary changes and plan ahead. REC members will have the task of making these regulations work in practice.  The REC’s task is to provide all the advice and guidance necessary.”

Kevin Green added:

“A poll during the REC’s last webinar in December revealed that 63 per cent of recruiters felt they needed more information and support on the regulations. ‘Your AWR Advisor’ is the outcome of this feedback and is based on the regular input from members at sector group meetings, regional events, policy committees and training workshops.

“Being ahead of the game will enable REC members to demonstrate real added value to their clients in the run-up to October 2011.”

Full details of Your AWR Advisor can be found by visiting www.rec.uk.com/awr.


Contact us

2011
02/02
CATEGORY
Press Release
Recruitment
TAGS



Leave a comment

Tribunal reform is important step forward and can help aid AWR implementation, says REC

The REC has welcomed Government confirmation of plans to reform the UK’s tribunal system. This was one of the key areas for Government action called for by the REC in recent discussions with Employment Relations Minister, Ed Davey.


The announcement is significant for recruiters in light of the forthcoming Agency Workers Regulations, which could lead to more tribunal claims.

Specific proposals include a new fee for lodging a tribunal action, a rise in the qualifying period before people can make unfair dismissal claims to two years, and a requirement that all cases must first be lodged with ACAS, the conciliation service that attempts to resolve disputes without resorting to a tribunal.

The net result of this should be to limit the number of unfounded and frivolous claims.

Highlighting the importance of this reform, Tom Hadley, the REC’s Director of Policy and Professional Services, says:

“We have been calling for concrete action to help businesses, and this is a step in the right direction. REC members have flagged employment tribunals as a major source of unnecessary cost and bureaucracy, and so the Government’s plans must deliver an effective filter.

“Organisations such as ACAS are not predicting a huge surge in tribunals once the AWR comes in later this year. However, there will clearly be some claims made by temporary staff,  who feel they are not benefiting from equal treatment provisions.

“Reform of the tribunal system provides further reassurance to recruiters and their clients that the new regulations will not add significant risk to the supply of temporary and contract staff.”

2011
01/27
CATEGORY
Press Release
Recruitment
TAGS



Leave a comment

Extrastaff – helping you understand the rules about blue collar temps

Extrastaff’s experienced managers can help warehouse and logistics operations keep abreast of their legal responsibilities regarding drivers and other blue collar temp staff. Tim Millward, founder of Extrastaff, looks at some of the key areas.


Driver CPC:

Following an EU directive, since September 2009 all new drivers who undertake a test to drive a vehicle of 7.5t and above are required to pass and hold a Driver Certificate of Professional Competence (CPC). By September 2014, this will be the case for all existing licence holders too. Many drivers see this as so far in the future that they feel it’s not necessary yet, and that by magic it may just disappear; some haven’t even heard about it. There has been a lack of publicity surrounding driver CPCs, and agency drivers in particular are reluctant to organise it, as it means taking time off working Monday to Friday and thereby using their holiday up. Furthermore they are even less inclined to self-fund the training.

Our response has been to publicise the Driver CPC’s existence and forge a strong partnership with a professional training college to undertake weekend training, which Extrastaff funds up front. If drivers remain loyal for a minimum 6 months, we absorb the whole cost. Courses are planned over the next 12 months, with drivers having to undertake 5 separate sessions of 7 hours before 2014 to comply with the legislation. In some instances we are able to involve our client’s drivers to supplement numbers and create stronger relationships with them. The take up has been massive, with strong positive feedback from the participants.

AWD:

Another EU directive, The Agency Workers Directive (AWD) represents the biggest change and challenge to the recruitment agency sector since its inception in the 1950’s. At the moment, the Agency Workers Directive is a particular source of confusion, and the implications are not yet fully understood. Whilst the AWD was published under the Labour Government and the Coalition has said it cannot do a great deal about changing it, the new Government is going to be issuing guidance notes as to interpretation of the Directive and its likely impact. Until the guidance notes are published no one can be certain how the AWD will be enforced in the UK.

Under the legislation Temporary Workers will receive the same rights and benefits accorded to their full time counterparts after a minimum 12-week qualifying period. For regular temps working on long-term contracts, this can work fairly well and is relatively easy to manage. However a temporary worker will only have to work one day a week to qualify, and there can even be gaps of up to four weeks. For example a driver who works for five different companies each week for 12 consecutive weeks, will potentially have these rights with all five companies. This has the potential for a huge increase in administrative costs for both the agency and the customer, as whilst the agency has the primary obligation both will probably be held liable for ensuring compliance. Logically clients will presumably be under an obligation to provide pay comparators for permanent staff doing similar work.

A direct increase in the charge rate to clients is an obvious consequence, as an increase in pay will have to be passed on by the agency. However there are a couple of potential solutions to ensure it doesn’t have a detrimental effect for the client, agency and the temp worker.

One possibility is to transfer the temporary workers onto the agency on a full time basis, to work under a contract of service as opposed to a contract of service. The agency would have to fulfil a number of obligations, including offering a minimum amount of work at a given pay rate. This is known as the Swedish Derogation and is already used by some international competitors.
Alternatively a client might be able to have an operation that is solely run by agency staff, and therefore there is no wage or benefit comparison with full time staff. It will be interesting to see how the guidance notes impact our sector, which is very fast paced and where many temps may not work beyond the 12 week period.

Working Time Directive:

Another EU directive, since 1998 all mobile workers, both drivers and mates, have received the same rights as all other workers – 20 days paid holiday per annum. This has subsequently increased for all temp workers to 28 days. This has led to an increase in direct costs, and an increased shortage of drivers to cover ‘extra’ holidays, and hence an increase in advertising costs. Whilst an increase in costs is always an issue it has made the job of an agency driver more attractive.

In 2006, mobile workers had their working hours restricted to 48 hours per week. The burden of administering this fell upon the agency. Extrastaff’s response was to appoint an internal administrator to ensure compliance and record hours worked. Furthermore, we introduced an internal auditing procedure and trained all internal staff utilising the FTA.

GLA:

At about the same time the government formed the Gangmaster Licensing Authority (GLA), following on from the Morecombe Bay disaster, controlling temps primarily working in agriculture, forestry, food production and packaging. Whilst we hold a licence we do not work within this sector as a matter of choice as it goes against our business model, because generally numbers are high and margins are low.

Compliance:

In order for Extrastaff to stay one step ahead and show an auditable trail, we have developed an independent bespoke IT system at a cost of nearly £100,000 to help our teams work better. We never lose the human touch, but the system helps us keep constant track of each temp and each client’s requirements and the relationship between the two, whilst having compliance issues fully built in. The system, which is currently being beta tested, will not only be able to record each temp’s assignment with every client and the hours worked, but also measure a variety of KPI’s, which can be requested by each client. The plan is that clients will be able to access compliance files via a secure web link for their temps, in order to ensure their eligibility and suitability to work on any given assignment. This revolutionary product will enable us to pull together the variety of legislative processes that every agency has to undertake and provide a one stop shop for all our and our clients’ needs.

Extrastaff Ltd   Tel: 01727 810000   www.extrastaff.com

 

2010
11/25
CATEGORY
Industry Report
Press Release
TAGS








Leave a comment

Follow us on Facebook