Crystal Umbrella

As the Agency Workers Directive regulations were laid before parliament last week there was a widespread sense of relief that it would not be implemented until October 2011. However, there still remain widespread concerns regarding this legislation and many professional bodies have spoken to Contractor UK to voice these.

The Association of Professional Staffing Companies (APSCo) believe the Directive is “riddled with inconsistencies”. They are also of the opinion that the high costs associated with AWD compliance “will be borne by the contractors who usually earn more than permanent staff but may now get lower rates.”

APSCo chief executive Ann Swain stated: “The exclusion of limited company contractors from the regulations is a huge victory for the professional recruitment sector. Determining whether limited company contractors are genuinely self employed or not is hugely complicated and is not something recruiters will be able to do reliably without detailed guidance.”

Meanwhile the Association of Recruitment Consultancies (ARC) are dismayed that despite two consultations last year, industry were not given the final word on the regulations. They believe the directive still has “many anomalies”.

ARC chairman, Adrian Marlow, commented on the reality for workers when the directive comes into force: “The jury must be out until the detail can be seen. We are not jumping to any conclusions.”

The government stated that the decision to lay the regulations before parliament last week stays true to their promise that the AWD would be on the statute book during this parliamentary session. However, they have said that agencies, recruiters and workers now have “time to prepare and plan” before it is enshrined in October.

Source: Contractor UK

Yesterday, as the final regulations for the Agency Workers Directive were laid before Parliament, there was confirmation that its implementation would be delayed until October next year. This move has been welcomed by agencies and contractors alike.

As reported in The Recruiter, chief executive of the Recruitment and Employment Confederation, Kevin Green, said of this news: “Professional recruiters will bear the brunt of making these complex regulations work on the ground and we are pleased that some of the recruitment industry’s key concerns have been taken on board. In particular, we welcome the delayed implementation date and the decision not to impose potentially damaging restrictions on the fees charged by agencies where a temporary worker is taken on permanently by an employer.”

In conclusion, however, Mr Green added his concerns about the legislation: “However, there are real concerns that these EU regulations are ill-adapted to the UK labour market and could limit job opportunities at a time when flexible working options are providing a crucial route into employment. The priority now is to ensure that effective guidance is developed for employers and recruitment agencies.”

While the later implementation date is good news, there are still concerns and apprehension aplenty regarding this directive. Speaking for manufacturers’ organisation EEF, their head of employment policy David Yeandle confirmed their stance with The Recruiter, stating: “manufacturers will be pleased the government has confirmed that this legislation will come into force in October 2011 and that it has resisted pressure for its earlier implementation. However, we remain concerned about the costs and administrative burdens that this new legislation will impose on employers and, in particular, about how the decision to include some bonus payments in the definition of pay that will be used for equal treatment.”

Mr Yeandle concluded: “It will now be important for the government to publish clear and practical guidance for employers on these regulations well before their implementation in October 2011.”

It had been hoped that the implementation of the Agency Workers Directive would be postponed; however Gordon Brown has confirmed that it will become law within the next few months. The Prime Minister made this promise when he was addressing the TUC Congress.

The Directive has caused concerns amongst contractors and agency groups alike. It is feared that this EU directive would make contractors a less attractive option due to the employment rights that it would award them. The original aim of the Directive was to protect the most vulnerable agency workers.

The Prime Minister said: “I believe that the fight for fairness must include agency workers, and so I pledge to you today that when Parliament returns our new legislative programme will include equal treatment for agency workers and that in the coming few months the law will be on the statute book.”

This promise by Gordon Brown was met with condemnation from the Association of Recruitment Consultancies (ARC) whose chair, Adrian Marlowe, said: “”Forget Liverpool, Union leaders must be living in la la land if they think bring in the Agency Workers Directive now will protect one job. If this directive goes ahead it will hit jobs and the economy hard. The Government should think twice of the true cost of implementing the directive at cost in excess of £2 billion, money the Country can ill afford. At a time when employers need flexibility and encouragement to take on new workers gold plating the directive will simply lead to greater unemployment.”