News

Government hands agency workers new groundbreaking deal

Release date: 21/05/2008

Improved employment rights are to be handed to an estimated 1.4 million agency workers following a groundbreaking deal announced by the Government.

After years of campaigning by unions, the Government has agreed to table legislation later in the year which will ensure agency workers receive equal treatment after 12 weeks' employment in any given job. This means agency workers will be entitled to at least the same basic working and employment conditions as their permanent colleagues.

The Government believes the deal could pave the way to reaching agreement in Europe on a new Agency Workers' Directive, while at the same time securing flexibility for the UK. But the British Chambers of Commerce and the Federation of Small Businesses have both criticised the plans and warn that firms may stop using temporary staff altogether.

Nick Bone, an employment specialist at Midlands' law firm Harvey Ingram, has been following the developments closely.

He says: "Agency workers provide a useful way for employers to respond to seasonal or short-term fluctuations in demand. However, the Government has been under considerable pressure for some time from unions to provide some protection for agency workers.

"There is no clear guidance on precisely what benefits and entitlements will be granted to agency workers and the Government proposes to consult on the implementation of the European Directive, in anticipation of introducing UK legislation. Nevertheless, this could be seen as the first step to improving rights for a significant proportion of the UK's workers.

"It's likely to have a significant impact on businesses which use agency workers as cheaper labour rather than their own permanent staff, or to cover seasonal fluctuations in demand."