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Agency Workers and the Law

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Temp to perm or FTC? Considerations for the Road Home ... Any questions please contact: D.hill_at_wmleadersboard.gov.uk. 0121 678 1038 ... – PowerPoint PPT presentation

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Title: Agency Workers and the Law


1
Agency 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

4
What 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.

5
PPE 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

6
Agency 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

7
Employment 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

8
Rights after 12 weeks
9
Discrimination 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

10
Top 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
12
REC (2008) www.rec.uk.com/about-recruitment/resea
rch/bookshop/tempagencyworkintheuk
13
REC (2008) www.rec.uk.com/about-recruitment/resea
rch/bookshop/tempagencyworkintheuk
14
Future costs of Agency Workers
Berr, Implementation of the agency workers
directive A consultation paper
15
Considerations 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?

16
Considerations 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

17
Considerations for the Road Home
  • Think about your vendor contracts - inserting
    clauses into them to protect the organisation and
    individual

18
Action 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

19
Summary
  • 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

20
Thank you for listening and I hope Ive saved you
millions!
  • Any questions please contact
  • D.hill_at_wmleadersboard.gov.uk
  • 0121 678 1038
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