Nearly one third of businesses which take on temporary staff and contractors are expected to end contracts early to avoid new laws giving those workers the same employment and working conditions as permanent staff, according to a poll of recruitment companies.
The survey, carried out by the Association of Professional Staffing Companies (APSCo) said that 29% of its member recruiters were expecting companies hiring professional level contractors to terminate contracts before the Agency Workers Regulations (AWR) could take effect. Ann Swain, the body's chief executive, said that this showed the new regulations were having an impact "even at the professional end of the market".
Under the Agency Workers Regulations 2010 (AWR), which came into force on 1 October 2011, agency workers are entitled to have the same basic working and employment conditions as if they had been employed directly by the hirer once they have completed a qualifying period of 12 calendar weeks with the same hirer, in the same role.
Under the new Regulations, agency workers are those individuals who have an employment contract with an agency or ‘any other contract with the agency to perform work or services personally’.
The same basic working and employment conditions they are entitled to receive after 12 weeks’ service include rights relating to:-
- Pay
- Duration of working hours
- Breaks
- Night work
- Holidays; and
- Public Holidays
Agencies and employers must also be aware that there is an obligation for end users to provide certain rights from the first day of any assignment. From the outset, agency staff must be provide with the same access to collective facilities and amenities that are made available to other members of staff. This includes the use of car parking, canteens and childcare facilities. Details of any relevant vacancies within the hirer organisation must also be made available to agency staff so that they are given the same opportunity as a comparable worker to find permanent employment.
When dealing with the AWR, agencies and employers need to be conscious that there are strict anti-avoidance provisions in place which will prevent a series of assignments being structured in a way that prevents an agency worker from completing the 12 week qualifying period.
The Gregg Latchams' employment department can help draft contracts to ensure compliance with the AWR, and further, the Employment Agencies and Employment Businesses Regulations 2003/2007, which necessitate the provision of certain information to be provided to agency workers (and end users) at the outset of any assignment. Alternatively, a specific contract of employment can be provided between the agency and the agency worker (also known as ‘the Swedish Derogation’) which will offer employment rights in preference to those guaranteed by the AWR.
