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Agency Workers and the Law

Agency Workers and the Law. Donna Hill, Head of Employer Services WMLB July 2009. THIS PRESENTATION IS GOING TO SAVE YOU MILLIONS!. Route we are taking. Definition of an agency worker Use of agency workers Agency Worker Directive (AWD) Perceived effects of the AWD

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Agency Workers and the Law

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  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/research/bookshop/tempagencyworkintheuk

  13. REC (2008) www.rec.uk.com/about-recruitment/research/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 I’ve saved you millions! Any questions please contact: D.hill@wmleadersboard.gov.uk 0121 678 1038

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