AGENCY WORKERS DIRECTIVE
The
proposed Directive generally gives Agency Workers (AW) equal rights to
permanent employees in relation to pay and conditions. It has been in
the offing since 2002 and has always been opposed by the UK, on the
grounds that we need the flexibility of AW and it should not apply to
pay.
However, an agreement made in May 2008 between the Government, TUC and
CBI changed this. The directive will now be introduced on the basis
that it will apply to any AW after 12 weeks on an assignment. This was
agreed by the CBI provided the UK could keep the working time directive
opt out. This is now in doubt after the EU Parliament failed to agree
that this exclusion for the UK should continue.
WHAT DOES THE PROPOSED DIRECTIVE MEAN FOR AGENCY WORKERS?
After 12 weeks all AW supplied by an Employment Agency will obtain:
-
Equal pay with a comparable worker doing broadly similar work.
- The pay will include holiday pay, overtime, shift allowance and
generally bonuses. In relation to the last, we are waiting for the
Government’s decision on this, when the draft regulations are published.
- Equal conditions to permanent employees i.e. equal rest periods, holidays, breaks and working time.
WHAT ISN’T COVERED?
-
Rights to flexible working.
- Redundancy.
- Reasonable notice before dismissal.
- Time off for children to look after children.
WHEN WILL IT BECOME LAW?
The Government has just finished the first consultation and is now
considering the responses. Draft regulation and the Government’s views
on the consultation, are expected about September /October. The
directive will probably become law in about April/May 2010, subject to
possible legal challenges.
WHAT ARE ARC VIEWS?
We have campaigned hard against many aspects of the directive and have
been working closely with the Institute of Directors and the Federation
of Small Businesses. Adrian Marlowe chair of ARC has also had extensive
meetings with the Government, CBI, British Chambers of Commerce, and
the Conservative and Liberal parties.
ARC is responsible for proposing two major amendments to the consultation paper. We have suggested:
- The government should implement the directive as drafted by the
EU without gold plating it. The current proposal will apply to nearly
all AW after 12 weeks. The actual Directive only relates to AW who are
subject to “regulations, administrative provisions, collective
agreements and or other binding general provisions in force in the user
undertaking”(hirer). This means mainly the public sector and very large
companies. If the government implement the Directive without gold
plating the vast majority of AW would not be affected. This would
result in an enormous saving of £1.2bn and many more agency jobs
retained or created. This is very important at a time when
unemployment is a serious concern to many
- If the Government insist on gold plating the directive, there
should be a two-tier system whereby AW would be subject to the
directive after 12 weeks. However, higher paid AW, earning say 1.5 %
of the national minimum wage, would only be subject to the directive
after a year. This would allow many AW the flexibility they enjoy at
present and would avoid the problem of hirers sacking people after 11
weeks.
WHAT HAPPENS NEXT?
The
Government will start a second consultation period probably in
September or October and publish draft regulations at the same time.
This will be the last chance to influence their decision.
The Directive is expected to become law around April or May 2010 unless
successfully challenged in the courts. Alternatively the Government
could delay implementation to nearer the last date provided for by the
EU, which is 5th December 2011.
WHAT YOU CAN DO
If
you are an Employment Agency and agree with ARC’s proposals, why not
join us? For more information contact ARC on 01273 236236 or click on
the link below.
Our detailed response to the first Consultation is available to ARC members.