Proposed agency workers regulations leave a bitter taste

This warning came from representatives of some of the UK's top businesses at a recent event organised by the Association of Recruitment Consultancies. They believe that implementation of the regulations is going to be both complex and onerous for all concerned and that if employers have to increase pay and conditions for temporary workers they will be more reluctant to make use of recruitment agency workers.

One of the guest speakers at the event was the Shadow Minister for Corporate Affairs, Jonathan Djanogly. He told the packed audience that it was obvious that the Agency Workers Regulations were not wanted by either employers or in the main by employees either. He also believes that the main reason the unions are in favour of the legislation is that implementation may lead to more workers joining a union.

He added that "agency workers are a key way to getting young people into the workplace and the regulations will have a negative impact in this respect."

The Conservative party is unhappy that there was no consultation over the 12 week qualifying period with representatives of commerce, the recruitment industry or employers. He added that the Tory party will be happy to review the AWD legislation if required if they are win the 2010 election.

Adrian Marlowe, the Chairman of ARC that as well as temporary workers receiving the same rights as permanent employees after the 12 week qualifying period, permanent employees could demand pay rises to ensure their salary was on a par with the temporary workers who were working alongside them.

He went on to point out that at present we have a flexible market that benefits both employers and employees. For some agency workers, a temporary contract is a stepping stone into full-time permanent employment and these new regulations could block this type of opportunity.

Marlowe believes that the cost of implementing these regulations will be around £2.8bn annually, a sum that he believes would be better spent creating employment opportunities.

The Association of Recruitment Consultancies has suggested that the government take a two tier approach to the problem giving the lowest paid workers equal rights after 12 weeks whilst the higher paid would not benefit until they had been in a contract for 12 months. Attendees at the event showed virtually unanimous support for this proposal.

Marlowe finished by saying that both employers and recruitment agencies must continue to press the government on these regulations, and that the government must leave the door open to making further amendments.

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