New Agency Worker Regulations threaten temporary worker jobs

A survey of 200 HR professionals has revealed a third of medium-large organisations may terminate agency worker’s contracts before the new 12 week qualifying period in an attempt to avoid increased costs caused by the new Employment Law Regulations.

The Agency Worker Regulations 2010 come into force on October 1 and require hirers to treat agency workers in the same way as those hired directly after they successfully complete a 12 week qualifying period. This means hirers will have to offer these workers the same terms of employment covering wages, sick pay and holiday entitlement.

The main findings of the survey are as follows:

• One third of medium-large businesses will consider terminating temporary contracts before the end of the 12 week qualifying period.
• The average cost to businesses of providing the equal benefits is estimated at £1,755 per worker.
• 37% of businesses have not considered how they will appraise agency workers for performance related bonuses.
• 35% have yet to consider how the Agency Worker Regulations will affect how they will deal with the Government’s proposed auto-enrolment pension scheme.
• 52% suggest they will hire more fixed term workers.
• 38% will only hire those workers who have a permanent contract of employment with their agency and who may therefore be excluded from equal treatment in relation to pay.

Click here for information on Holmes & Hills' specialist Employment Law services that can advise you on the Agency Worker Regulations or any other aspect of Employment Law. 

Holmes & Hills Solicitors' Employment Law services for employers are provided by the firm's Employment Law specialist, David Dixey.