Tue, 3 Jan 2012

Agency workers’ rights boosted over Christmas

Agency workers’ rights have been boosted after a new directive came into force over the Christmas period, but many will miss out on benefits as employers take advantage of a loophole.

The Agency Workers Directive (AWD) gives casual staff equality with directly employed workers after 12 weeks in a job but can be circumvented if agencies hire temps directly, making them exempt from their rights.

The AWD was launched by the government on October 1st last year meaning agency workers would have worked 12 weeks since then on Christmas Eve.

As a result they could now be due pay rises, holiday rights, sick pay, maternity leave and bonuses attributable to individual performance – in line with their permanent colleagues.

The Communication Workers Union described the move as “the best possible Christmas present” for its agency members.

As well as full equality after 12 weeks the 1.4m agency workers in the UK will be allowed to use some of the same facilities as permanent staff from the day they start including creches, canteens and transport services.

Damaging market

However, concerns have been raised that the new rules may damage the temp market.

It could cost businesses across the UK an additional £1.8m a year to pay temps that currently earn about 10% less an hour than permanent staff.

And as reported by Payroll World last year a number companies, including DHL and Carlsberg are using the ‘Swedish derogation model’ to avoid paying equal wages to temp staff that are directly employed by an agency.

It is understood that Tesco, for example, is using the loophole with a number of its recruiters resulting in many of its agency staff losing out on potential benefits.

See also:

• Royal Mail pay ‘disaster’ could lead to tribunals and raises questions over in-house management of temp workers
• Agency Worker Regulations: equal pay will impact only one in ten employers but raises a number of legal issues