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Housing Seminar: Partnerships with the Public Sector – Avoiding the pitfalls
Thu 31 May 2012
Minerva House, 5 Montague Close, London, SE1 9BB
Businesses 'keen to avoid impact of AWR'
Thu 12 Jan 2012
Many British companies are aiming to avoid being affected by Agency Workers Regulations (AWR) by terminating the contracts of temporary staff, experts have noted.
Research by the Association of Professional Staffing Companies (APSCo) found that some businesses are taking this step because the new regulations will give temporary workers the same rights as permanent members of staff.
Ann Swain, chief executive of the organisation, said this shows the introduction of AWR is "clearly having an impact" on businesses in various industries.
This, she stated, is because contractors and temps do not always earn more than permanent members of staff, which means companies could end up paying more by employing people such as young graduates under the new system.
Ms Swain noted that this trend has been apparent "even at the professional end of the market".
Sue Kelly, an employment partner at Winckworth Sherwood Solicitors, commented: "It is surprising that this commentator seems to have felt it necessary to emphasise the fact that agency workers ('contractors and temps') do not always earn more than permanent members of staff.
"The AWR were introduced to implement a European Directive on the same topic. It proceeded from an assumption that agency workers needed protection, because they tended to be paid less (rather than more) than those directly employed. Clearly much depends on the sector of the market and type of worker.
"Employers should, however, bear in mind that, where the AWR apply, the agency workers' pay needs to be compared with that of permanent staff at a comparable level."
This comes after employment relations minister Edward Davey described Britain's agency sector as a "key part" of the country's flexible labour market.
