Proposals would 'put pressure on UK firms' says Recruiters

57% of UK recruitment agencies believe that the proposed Temporary Agency Workers Bill would place unnecessary pressure on businesses that rely on temporary workers, according to new research.

The research, conducted by specialist Recruitment Finance provider, Bibby Financial Services, questioned recruitment agencies about the effect the Bill, which gives temporary workers the same employment rights as permanent staff, will have on the UK economy.

Over half (53%) of recruitment agency owners and managers felt that the Bill would increase the amount of red tape for both recruitment agencies and potential employees through regulatory paperwork. Half (50%) said that it would hit small businesses hard by increasing staffing costs and the amount of administration required, but that those working on a temporary contract would feel the benefit.

Around three in ten (31%) felt that the Bill would be a good thing and would stop workers from being exploited by unscrupulous companies. However, over a third (34%), believed that it would encourage companies to stop using temps on a regular basis and may consider other staffing options altogether.




Overall, only one in seven (14%) recruitment agencies view the proposed Bill in a positive light, expecting it to increase the number of people looking for work, in turn helping them to fill vacant positions in what is already a difficult market with high employment levels.

Edward Rimmer, chief executive of UK operations for Bibby Financial Services, comments: ìThe proposed Temporary Agency Workers Bill is viewed by many in the recruitment sector with an element of scepticism. While it will undoubtedly bring benefits for temporary workers themselves, it will be the recruitment industry and small businesses that are hit hard ñ facing more red tape and increased costs associated with employing staff.î