Employers swap temporary workers for permanent staff

A recent report suggests employers may be swapping temporary workers for permanent staff due to uncertainty over the Agency Worker Regulations (AWR) which came into force on 1st October 2011.

Under the regulations, agency workers who have been with a firm for 12 weeks or more are entitled to the same employment terms and conditions as someone employed by the firm directly. The recent report by The Recruitment and Employment Confederation and KPMG found that temporary appointments fell at the fastest rate for two and a half years during the month of March whilst the number of permanent positions being offered increased.

The report suggests that the shift from temporary to permanent staff may be due to the new regulations as survey respondents frequently cited the regulations as the reason for converting from temporary to permanent placements.

In addition to the regulations, commentators have suggested increased confidence among employers may also be a factor, with more employers willing to take on permanent staff than was previously the case.

David Dixey, employment law specialist at Holmes & Hills Solicitors, said: “It is difficult to identify a clear and causal link between the Agency Worker Regulations brought in last year and the decline in agency workers as there are many factors which effect employers’ hiring decisions.

“Many employers of temporary workers only hire staff for very short periods of time, often less than the 12 week period necessary for the regulations to come into effect. For these employers the regulations have had little impact.”

David went on to advise: “If employers are looking at using agency workers, or already employ agency workers, they should seek advice as to what they should be doing to ensure they comply with the regulations and protect themselves from potential employment claims.”