Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Auto-enrolmentEmployment lawHR practiceAgency workers

Agency Workers Regulations could threaten 500,000 temporary jobs

by Laura Chamberlain 13 Sep 2011
by Laura Chamberlain 13 Sep 2011

The introduction of the Agency Workers Regulations next month could threaten up to 500,000 temporary employment contracts, a report has found.

One-third of medium-to-large businesses admitted that they may attempt to avoid increased costs caused by the Regulations by terminating agency workers’ contracts before the 12-week qualifying period is reached, according to a report by international law firm Allen & Overy.

The report estimates that the cost to business of providing equal benefits for temporary workers will be £1.3 billion per year, an average cost per worker of £1,755.

From 1 October 2011, agency workers will have the right to the same basic employment conditions – such as pay, holidays and performance-related bonuses – as direct recruits after 12 weeks working for the same hirer in “the same role”.

However, the report, which surveyed 200 HR practitioners, found that many employers are yet to look at how the changes will affect certain benefits, with 37% saying that they are yet to consider how they will appraise temporary workers for performance-related bonuses and 35% are yet to evaluate how the Regulations will affect them after pension auto-enrolment rules are introduced next year.

Stefan Martin, employment partner at Allen & Overy, commented: “The advantages of using a flexible workforce during the current economic climate will be compromised as employers feel the burden of additional rules and regulations.

“While businesses will undoubtedly continue to use agency workers, this will result in increased costs. Rather than strengthening their rights, this may actually make the position of agency workers much more uncertain, exposing them to early termination of contracts.”

He added that employers that use agency workers need to assess how they are going to manage their temporary workforce, and should review their agency contracts to make sure that they minimise the scope for the agencies to pass on the increased costs.

Employers can find a full guide to what is covered by the Agency Workers Regulations on XpertHR.

Avatar
Laura Chamberlain

previous post
C&S Wholesale Grocers partners with Kenexa to improve recruiting processes
next post
North-South divide returns to the jobs market

You may also like

HMRC looking to recoup £1.4bn from businesses’ use...

1 Aug 2022

Ministers release guidance to clarify UK employment status...

28 Jul 2022

Underpayment not reported due to ‘fear and insecurity’

25 Jul 2022

Supreme Court: Holiday pay for part-year staff should...

20 Jul 2022

Frasers Group scraps Friday working from home policy

15 Jul 2022

The risks of sexual harassment in the metaverse

14 Jul 2022

MPs vote to replace striking staff with agency...

12 Jul 2022

One in nine UK workers is in insecure...

12 Jul 2022

Should employers pay for restrictive covenants?

8 Jul 2022

Founder disputes: the significance of fair play

8 Jul 2022
  • 6 reasons why work-based learning is better than traditional training PROMOTED | A recent Fortune/Deloitte survey found that 71% of CEOs are anticipating that this year’s biggest business disrupter...Read more
  • Strengthening Scotland’s public services through virtual recruiting PROMOTED | This website is Scotland's go-to place for job seekers looking to apply for roles in public services...Read more
  • What’s next for L&D? Enter Alchemist… PROMOTED | It’s time to turn off the tedious and get ready for interactive and immersive learning experiences...Read more
  • Simple mistakes are blighting the onboarding experience PROMOTED | The onboarding of new hires is a company’s best chance...Read more
  • Preventing Burnout: How can HR help key workers get the right help? PROMOTED | Workplace wellbeing may seem a distant memory...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+