Agency Workers Regulations 2010 background

The Directive had been in the offing since 2002 and had always been opposed by the UK until 2008, 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.

What do the Agency Workers Regulations mean for Agency Workers?

After 12 weeks on an assignment (calculated in a fairly complex way) all Agency Workers as defined  will obtain:

• Equal pay with a comparable worker doing broadly similar work.
• The pay will include holiday pay, overtime, shift allowance andcertain bonuses.
• Equal conditions to permanent employees i.e. equal rest periods, holidays, breaks and working time.
• Payment for the whole of an assignment if laid off for pregnancy related health and safety reason.

Certain rights also apply from day one of an assignment, e.g. the right to be informed about vacanbcies at the hirer site, and the right not to be discriminated against.

What isn't covered?

• Rights to flexible working.
• Redundancy.
• Reasonable notice before dismissal.
• Time off for children to look after children.
• Unfair dismissal

Will Limited Company Contractors be within scope?

Yes and the Regulations will apply on the face of it. All individuals that are supplied to work for a hirer under its direction and supervision are generally included within scope.However guidance promised by the Government may throw some light on this area, and we are working with our advisers on arrangements that may assist.

When will it become law?

Following two consultations in 2009 the final draft Regulations were laid before Parliament in January 2010 at which time they became law although Parliament had the rights to review and object for 40 days thereafter. It is important to note that the law wills not apply until October 2011.

What are ARC's views?

ARC has fought hard to persuade the government not to "gold plate" the Directive by introducing aspects that go beyond the Directive. In Summer 2009, following ARC's successful campaign in conjunction with the Institute of Directors to restrict scope to that set out in Article 3(1)(f) of the Directive, the government changed its plans and introduced limitations that previously had not been considered. Numerous other points put forward by ARC were also acted upon.

ARC has an ongoing campaign to highlight damaging issues. In March and April 2010 ARC considered whether to bring a judicial review of certain "deeming" provisions.ARC continues to press for  changes to the regulations to enable a fairer result for the recruitment industry and hirers. This served to draw attention to the problem area at a time when interest in the subject is under threat, and helps keep the issue alive for an incoming government in May 2010.