EU Council reaches agreement on principles of Agency Workers Directive

On the 10th June, the EU Council  agreed points of principle as to the content of the proposed Agency Workers Directive. Fundamentally it was agreed that the entitlement for agency workers to have comparable rights to regular employees of the end user shall apply from day one of an assignment in terms of pay, leave and maternity leave. However it was also agreed that member states can derogate from this period, by allowing a longer qualifying period and no upper limit was set for that qualifying period.

Additional points agreed include

(a)    temporary agency workers to be informed about permanent employment opportunities in the user enterprise

(b)    equal access to collective facilities (canteen, child care facilities, transport service)

(c)    Member States have to improve temporary agency workers access to training and child care facilities in periods BETWEEN their assignments so to increase their employability

(d)    Member States have to ensure penalties for non-compliance by temporary agencies and enterprises.

This means that on the face of it the UK government's intention to introduce legislation relating to agency worker rights, with a provision that entitlement to the rights accrues once an assignment has run for 12 week, would be lawful under the proposed directive.

However, the directive still has several hoops to jump through before becoming law, with formal adoption as the first step, and then submission to the EU Parliament. However it is clear from the terms discussed at the council meeting yesterday that it is the UK's initiative that has resulted in the directive being able to move forwards. Several countries are opposed to the 12 week derogation period and wish there to be a maximum period, in some cases lower than 12 weeks. The UK's initiative relies upon the "deal" announced by government in May between the unions, the CBI and other employer organisations, including the REC.

There is little doubt that employer organisations were strong-armed into this, since there is a sense that most employers and recruiters would prefer there to be no extension of rights to agency workers for fear of upsetting the flexible workforce. There is also a strong sense that once again the UK is headed down the path of more legislation affecting all when in fact it is only the vulnerable that require protection.

The actual terms of the legislation, and therefore the extent of its application, are still not yet known. 

Should agencies be concerned? Welcome, or a disaster?

Clearly there will be an impact across the board. Wait and see? Won't affect me? The position is not yet known, but many pundits see this measure as a disaster waiting to happen. Assurances to the contrary, and any view that contractors are automatically to be excluded, cannot be relied upon at this stage. By doing nothing now you increase the chance that key factors affecting your business may be overlooked, and opportunities to affect the outcome could be lost. The best thing to do is get the facts, consider the problems and make your voice heard.

GET THE FACTS - SEMINAR

We will be discussing this issue in detail at our "Knowledge is Power" seminar on 24th June 2008. In addition Anne Fairweather of the REC will be advising on the REC's position and its efforts on behalf of the industry. At that time the position may well have become clearer (indeed following the above, it already is) and we will have had a chance to analyse the options for recruiters. We shall also be covering off a whole range of other crucial supply related issues.

If you would like to be kept informed of the latest updated information on events related to  and evolution of the new legislation please email us.