Title: Agency Workers and the Law
1Agency Workers and the Law
Donna Hill, Head of Employer
Services WMLB July 2009
2- THIS PRESENTATION IS GOING TO SAVE YOU MILLIONS!
3 Route we are taking
- Definition of an agency worker
- Use of agency workers
- Agency Worker Directive (AWD)
- Perceived effects of the AWD
- Future costs of agency workers
- Considerations from AWD
4What is a Temporary Agency Worker?
-
- Temporary agency worker means a worker with a
contract of employment or an employment
relationship with a temporary-work agency with a
view to being assigned to a user undertaking to
work temporarily under its supervision and
direction.
5PPE Survey in March 2009
- 1.4 million agency workers in UK
- 30 of agency workers work in public sector
- Average cost of employing agency workers 4-7
- Average length of agency worker assignment 4.5
months - Generally Public Sector pay professional agency
staff equivalent to employees (in terms of what
is paid to the agency) - Lower skilled sometimes paid less than equivalent
permanent staff - Few public services have estimated the cost of
the new Directive - Assumed the cost of employing lower skilled
workers will rise and therefore re-assess use of
these workers
6Agency Worker Directive
- Right to equal treatment after 12 calendar weeks
- Min length breaks between assignments (4-6 weeks)
to prevent end users releasing and re-engaging
temps - EU implementation deadline - 5th December 2011
- Consultation closes 31st July 2009
- Proposals apply to Employment Business not
Employment Agency
7Employment Business
- Introduce workers to end users (i.e. LA) for
temporary work - Employment business pays the agency worker not
the end user - Employment agencies introduce workers to end
users for permanent work
8Rights after 12 weeks
9Discrimination Responsibilities
- Refuse to hire pregnant agency worker
Discrimination - Terminate agency worker due to pregnancy
Discrimination - Must carry out risk assessment for all agency
workers and make necessary adjustments
10Top reasons for using agency workers
- Provide short-term cover for
absences/vacancies - Match staffing levels to peaks in demand
- Not possible to fill staff vacancies
- Maternity or annual leave
- Obtain specialist skills
- Freeze on permanent recruitment
11 Perceived effects of proposed AWD
CBI Employment Trends Survey 2007
12REC (2008) www.rec.uk.com/about-recruitment/resea
rch/bookshop/tempagencyworkintheuk
13REC (2008) www.rec.uk.com/about-recruitment/resea
rch/bookshop/tempagencyworkintheuk
14Future costs of Agency Workers
Berr, Implementation of the agency workers
directive A consultation paper
15Considerations for the Road Home
- Do you still want to procure for agency workers
or would you prefer to move away from that method
of recruitment? - If you want to use agency workers, how will you
limit the costs? - - E.g. swap temp at 12 weeks risks
- - Re-employ after 4-6 weeks - risks
- - Temp to perm or FTC?
16Considerations for the Road Home
- Alternative methods of recruitment JCP
partnerships - - Reduced numbers of long term unemployment
through offering sustainable jobs of 13 weeks or
more (AWD kick in) - Reduced managers time in recruiting as JCP help
process - Reduced advertising spend
- Reduced agency worker spend
- Access to funding for training through LSC
- Improved diversity figures
17Considerations for the Road Home
- Think about your vendor contracts - inserting
clauses into them to protect the organisation and
individual
18Action Points
- Reply to consultation on the Directive by 31.7.09
- Prepare for new rules by checking which temps
fall within this scope - Are there likely to be comparable employees?
- Put a strategy in place arising from
considerations
19Summary
- Defined an agency worker
- Looked at where they are used most
- Explored what AWD is
- Perceived effects of AWD
- Future Costs of AWD
- Considerations/actions for you to take back
20Thank you for listening and I hope Ive saved you
millions!
- Any questions please contact
- D.hill_at_wmleadersboard.gov.uk
- 0121 678 1038