Businesses must prepare themselves for major changes in the way they use agency staff, warns Welsh law firm Dolmans.
New Regulations due to come into force later this year mean that firms must give agency staff the same basic terms and conditions as their employees, with anti-avoidance measures to be implemented which include hefty fines.
Jennifer Cottle, employment law expert at Dolmans, said: “The new Regulations will give new rights to agency workers after 12 weeks’ continuous work. After this period, agency workers will have the same rights as if they had been directly recruited by the hirer. The Regulations require conditions such as pay, working time, rest breaks and annual leave for agency workers to be at a level equivalent to that of directly recruited employees. The Regulations also prohibit detrimental treatment or dismissal of agency workers on the ground of their status. The Regulations are a shake up of the way the system is currently run and their core aim is to ensure that agency workers are treated fairly and equally. Agency workers will be able to claim compensation where they have been denied the protected terms and conditions granted under the Regulations.
“If there is a breach in the Regulations, the liability can fall with either the recruitment agency or the hirer so claims can be made against both parties. At any point, an agency worker who believes they are not getting equal pay or treatment can request that they be provided with a copy of the hirer’s terms and conditions. The agency must provide these within 28 days. On this basis, the agency will need to take reasonable steps to ascertain a hirer’s standard terms and conditions for like workers, relating to issues such as how much employees are paid and what rest breaks and annual leave they are entitled to. Consequently, the hirer is obligated to efficiently and accurately respond to these requests for information from the agency.
“The significant factor within these Regulations is that anything deemed to be a way of avoiding compliance will be dealt with. If any avoidance tactics are used, there is scope for an additional fine of up to £5,000 to be levied against the offending party.
“If businesses are going to use agency staff, they need to think what benefits it will bring them. Such benefits may continue to exist but they are changing so businesses will need to review their requirements. Some businesses will be apprehensive about the changes, at least in the short term. With the increased burden of ensuring compliance with the Regulations, many hirers may well wish to review their use of agency workers in the next six months, before the Regulations come into force in October. Likewise, agencies are likely to be fast reviewing their existing terms and conditions of supply to protect their position.”
