Released on 30 July 2009
The close of the consultation on the Agency Workers Directive at the end of the week (31st July) is a significant milestone in the implementation of controversial new EU regulations that have been debated in Brussels and Whitehall since 1999.
The Directive provides for equal treatment between agency workers and direct recruits after 12 weeks of an assignment. After what has been a heavily politicised debate, it is now down to the practicalities of how EU regulations that are ill-suited to the agency work model in the UK can best be implemented. The REC has presented a blueprint for a workable implementation through the work of the Agency Work Commission and the feedback of thousands of recruitment professionals.
Commenting on what is at stake with the new regulations, Kevin Green, Chief Executive, REC said: “There are over a million temporary and contract workers out on assignment each week and it is thanks to these flexible working options that the UK jobs market is starting to show signs of life. There will be intense Trade Union pressure to gold plate the new regulations but the Government must be brave and avoid the kind of cost, bureaucracy and uncertainty that would have the perverse effect of limiting job opportunities.”
“The feedback from recruiters confirms that the EU Directive could add over 20% cost to the provision of agency workers through added bureaucracy and complexity. Recruiters are also concerned about the huge practical issues linked to establishing equal treatment in the UK. The Government must look beyond the political rhetoric and the misinformed notions that temporary workers are systematically exploited and must adopt a pragmatic approach that serve the interests of UK jobs and competitiveness.”
“The reality is that there is already fair pay for the vast majority of agency workers in this country, what we need is fair play for the thousands of agencies who will have to make the regulations work on the ground.”
Key demands from the REC include:
•The Directive should not implemented until the last possible moment at the end of 2011. This will enable agencies to work with clients to make sure that equal treatment is properly understood. It is also vital that the temporary jobs market is not disrupted as we pull out of recession.
•Equal treatment should be established on objective grounds, such as pay scales and company practice detailed in handbooks. There should never be an attempt to invent hypothetical comparators to establish equal treatment. These would lead to great uncertainty in the market.
•Equal pay should be limited to that given in hourly wage. Reflecting complex and varying bonus structures would simply be too complex to work out in an ad hoc temporary relationship.
•Self employed workers in business on their own account should not be covered by this legislation. These people engage with agencies as a company and are highly paid.
•Equal treatment should be earned after 12 continuous weeks in an assignment. Genuine ad hoc arrangements where a worker may move between a variety of clients in a 12 week period should not add into the 12 week qualifying period.
•The Government must not go beyond those rights clearly laid down by the Directive and social partner agreement.
A copy of the REC response to the Government’s consultation will be available at: http://www.rec.uk.com/about-recruitment/externalrelations/consultations
source:
http://www.rec.uk.com/press/news/721
