This is the warning from Dallas Kirkland (Professions) Ltd, the insurance broker for recruitment agencies in the UK, in the light of recent agency-worker claims against ëemployersí, where tribunals have treated agencies as well as end-users as ëemployersí. 
Robin Kirkland, MD of Dallas Kirkland explains, ëThe tribunal case of Astbury v Gist Ltd (EAT decision 14/4/05) for example, gave guidelines to employment tribunals indicating that where the tribunal is called upon to decide upon whether an employment relationship exists between the temporary worker and end user or the agency then ìit is highly desirable that all three parties should be involvedî.
Kirkland feels that this could have significant impact on agencies since they could be included in tribunal actions where they have no knowledge of the circumstances giving rise to the dispute. Indeed this makes no allowance for the potential problems to agencies that may be caused by the new age discrimination at work legislation.
ëTemporary recruitment agencies could find themselves involved in defending all manner of agency-worker claims.í Explains Kirkland. ëThe size and frequency of claims against them is one problem but the cost of legal representation and wasted management time are potentially more damaging. An agency looking to defend a claim, even if that claim is eventually dismissed, could easily part with over 10,000 in solicitorsí and barristersí fees. The average cost of a solicitor is 150 per hour and counsel would charge at least twice that.í
ëAgencies should consider Legal Expenses insurance especially if it provides a free legal helpline as part of the service. Costs start at around 179 (inclusive of insurance premium tax) per annum irrespective of the number of calls made to the legal helpline. It generally covers legal fees relating to defending civil proceedings by employees/agency-workers in connection with a contract of employment, race relations or sexual discrimination plus it will reimburse a subsequent Employment Award.í
Agencies may be dragged into tribunals where they have no knowledge of the dispute
Kirkland feels that this could have significant impact on agencies since they could be included in tribunal actions where they have no knowledge of the circumstances giving rise to the dispute
