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Government agrees equal rights for agency workers

Government, employers and trade unions have agreed on a deal which gives equal rights to agency workers. As either an Employer or HR Consultancy this new legislation will no doubt affect you.

The deal

Under the new proposal the estimated 1.4 million agency workers in the UK will be given equal pay and holiday entitlements after 12 weeks in a job. The government feels this deal will help in reaching an agreement in Europe on an agency workers directive that secures this flexibility for the UK, and may potentially allow the government to retain its opt-out from the Working Time Directive.

Business Secretary John Hutton said the deal “achieves our twin objectives of flexibility for British employers and fairness of workers”

What it doesn’t include

The proposed legislation will not entitle agency workers to sick pay or pension rights, while temporary staff will have to work the same length of time as full-time staff to enjoy maternity leave.

What happens next?

The government will now try to reach a deal at European level, and EU members are at this moment debating legislation on this issue. Only when Brussels passes a directive will the UK government be able to implement legislation of its own.

The government is also said to be consulting with social partners regarding the practicality of new legislation including mechanisms for resolving disputes regarding the definition of equal treatment. It will also look at anti-avoidance measures, in particular how it treats repeat contracts for the same worker.

Author: David Malamentios

Date: July 2008