The Temporary (Agency) Workers Directive seminar

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Blake Lapthorn solicitors' Recruitment sector group look at the proposals under The Temporary (Agency) Workers Directive at a seminar in November 2008

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The Temporary (Agency) Workers Directive seminar

  1. 1. The Temporary (Agency) Workers Directive 2008 – how will it affect users of temporary workers? Presented by Frances Lewis, Partner, Recruitment sector group, Blake Lapthorn 26 November 2008
  2. 2. Agenda Introduction Where are we now? What rights will "agency workers" have? What type of temporary worker will be covered? How will end users be affected? Ways around the new legislation Conclusions
  3. 3. Introduction European Social Agenda since early 1990s Underlying objective – basic equal rights for all types of worker May 2008 – TUC/CBI "deal" = secured right to derogate from Directive October 2008 – TAWD becomes European law
  4. 4. Where are we now? No going back = EU law Implementation in UK = new regulations by October 2009? CBI focussing on delaying implementation
  5. 5. What rights will "agency workers" have? 12 week qualifying period – part of CBI "deal" Principle of equal treatment Same "basic working conditions" as comparable permanent employee "basic working conditions" = pay, working time, holiday and sick pay BUT Occupational benefits excluded = occupational sick pay, pensions
  6. 6. What rights will "agency workers" have? Continued…. Notice of permanent vacancies – notice board? Intranet site? Access to amenities – canteen, childcare facilities, transport facilities "agency workers" count for purposes of collective consultation BUT Position re contractual maternity/paternity benefits unclear How will "pay" be assessed? What if there is no obvious comparator?
  7. 7. Who is an "agency worker"? Directive defines as a worker, "with a contract of employment or employment relationship with a temporary agency, who are assigned to user undertakings to work temporarily under their supervision and direction." How will this translate into the UK regulations? Aimed at "PAYE temps" Does NOT appear to include limited company contractors or other "self-employed" workers, e.g., interim managers, freelancers etc Andrew Miller, MP has assured recruiters that "professional contractors" will not be caught
  8. 8. How will end users be affected? Widely reported concerns that equal "pay" requirements will lead to increase cost Agencies and end users will need to assess who is caught and who is not Agencies will have to request "comparator" information – commercially sensitive? At what stage will comparator information need to be provided? Not yet clear how compliance will work in practice What about temporary workers already under contract? More "churn"
  9. 9. Ways around the new legislation Limit assignments to less than 12 weeks – NB anti avoidance measures Use of limited company contractors? Engaging temporary workers on "project" basis without end user "supervision or direction" "Swedish derogation" – employed contractor model Workplace and collective agreements
  10. 10. Conclusions Now EU law UK regulations have yet to be finalised A lot of hype and scaremongering out there – unlikely to apply to all temporary workers Don't panic – hold tight until draft UK regulations are published Speak to agencies about possible "work arounds" Identify which, if any, of your temporary workforce is affected Keep an eye on updates in early 2009
  11. 11. The Temporary (Agency) Workers Directive 2008 – how will it affect users of temporary workers? Presented by Frances Lewis, Partner, Recruitment sector group, Blake Lapthorn 26 November 2008

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