Newsflash - Agency workers
Agency Workers Regulations 2010
4 October 2011
The Agency Workers Regulations 2010 came into force on 1 October 2011. They have significant implications for employers using agency staff. Under the regulations staff supplied by employment agencies “to work temporarily for and under the supervision and direction of a hirer” will, following a qualifying period, be entitled to the same basic working and employment conditions as employees recruited directly by the hirer (the equal treatment principle).
Rights Acquired on Day 1
Under the regulations, from the start of the assignment, hirers are obliged to inform agency workers of any relevant vacancies with the hirer that arise during their assignment. The hirer also needs to ensure that agency workers have access to any collective facilities, such as canteens, gyms, crèches or transport available to employees of the hirer, as well as to training.
Rights Acquired After 12 Weeks
After a 12 week qualifying period an agency worker will be entitled to equal treatment in relation to pay, the duration of working time, night work, rest periods, rest breaks and annual leave.
The definition of “pay” includes wages, holiday pay, shift allowances and individual performance related bonuses. Items excluded from the scope of “pay” include company sick pay, pensions, redundancy payments, maternity, paternity and adoption pay and non-performance related bonuses.
Enforcement
A range of claims can be brought in the employment tribunal by agency workers where their rights under the regulations have been infringed.
Liability for ensuring equal treatment lies primarily with the agency. A business hiring agency workers only becomes liable where the agency has taken reasonable steps to get information about basic working and employment conditions and the hiring business fails to supply it, or supplies incorrect information.
However, liability in relation to “Day 1” rights falls upon the hirer.
Conclusions
There are approximately 1.3 million agency workers in the UK labour market. The new regulations are intended to provide some of these workers with employment rights similar to those of a permanent employee and have been welcomed by trade unions and other lobby groups.
Business organisations are however more ambivalent about this extension of quasi employment rights to agency workers. The previous government estimated that the regulatory and economic cost of the implementation of the regulations would be £1.9 billion. The regulations will increase the administrative and management burden on employment agencies and hirers alike. There may also be a risk that the regulations will in some cases work to the disadvantage of agency workers – with employers declining to use them and turning instead to alternatives such as greater use of self-employed workers and managed service contracts (which are outside the scope of the regulations).
Contact
This briefing is written as a general guide only. It is not intended to contain definitive legal advice. If you require advice please contact:
