Agency worker legislation to prove costly for businesses
Tuesday, 6th September 2011
Crombie Wilkinson Solicitors are informing businesses that the new regulations which come into force on 1st October 2011 will give agency workers greater rights.
Neil Largan from Crombie Wilkinson Solicitors said, “After 12 weeks of working for a hirer, agency workers will be entitled to the same basic employment and working conditions as permanent staff, including holiday time, pay and maternity leave. However, the 12 week qualifying period can be stopped or paused and therefore, it could prove very difficult for employers to keep track of whether or not a worker as accrued the required 12 continuous weeks to enable them to qualify for equal treatment for the purposes of the regulations.
“Additionally, they will be able to use communal facilities such as crèches and canteens from their first day at the company”.
While this is good news for the more than one million workers affected, business groups have warned of the costs for companies and the underlying impact on the economic recovery. According to the Institute of Directors, the government has “gold-plated” the EU directive which provoked the changes although it could have chosen to introduce it in a much more limited form.
Indeed, analysis by the Department for Business has shown that the new regulations will cost firms more than £1.8 billion a year. On average, this means an extra £2,493 for small businesses and £73,188 for larger ones. It is therefore even more important that businesses understand what the regulations will mean for them and also to be aware of the potential consequences of not adhering to the new regulations.
We are here to help
Call 0800 027 5999 or ask a quick question here:
