Agency Worker Update

Posted on: 08.06.2012    13:49:35

A survey, conducted by The Employment Agency Movement (TEAM) in conjunction with the Department for Business Innovation and Skills (BIS), which compared temporary usage during the first quarter of 2012 with the first quarter of 2011 and reflected the views of agencies managing over 20,000 temporary workers across the UK has released the following data:

  • 60% of temporary workers have received little or no change in their remuneration
  • 60% of agencies feel their experience of the legislation has been negative.
  • 53% have had to increase their charge rates as a result of the AWR and
  • 36% have seen a negative impact on margins.
  • 16% reduction in the use of temporary workers has been reported by Employers.
  • 28% had opted to use ‘The Swedish Derogation’ under which agency workers are engaged on permanent contracts. The derogation guarantees workers minimum levels of payment between agency assignments, although there is still some debate as to whether that means they fall outside the remit of the AWR.

A lack of clarity was also highlighted with respondents frustrated by the fact that the regulations are still open to some interpretation. Many expressed disillusionment at being repeatedly told by their advisor’s that ‘we will need to wait for case law.’

Another piece of overarching European legislation that has created extra work for little benefit but has represented an opportunity for suppliers to harmonise supply arrangements with clients that take social responsibilities seriously but one hears that certain parties are trying to renege on reciprocal Swedish derogation commitments that lie at the heart of the arrangement by threatening to change suppliers.


Author: Chris Slay

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