Employment: New regulations to implement the Temporary Agency Workers Directive

January 3, 2010

Following consultations in 2009, the regulations implementing the EU
Temporary Agency Workers Directive, the Agency Workers Regulations 2010
(the “Regulations”), have been laid before Parliament.  The Regulations
are due to come into force on 1 October 2011.

The draft Regulations have been amended from those published in
October last year as a result of the consultations.

The central right under the new Regulations is for temporary workers
who are contracted by an employment agency but work under the control
of the hirer to receive the same basic working and employment conditions
as comparable employees in the hirer’s organisation after a 12 week
qualifying period.

On completion of the 12 week qualifying period agency workers must
receive equal treatment in relation to:

“Pay” includes salary, fees, bonuses and commission but excludes
pension, occupational sick pay, maternity and paternity pay, redundancy
pay, financial participation schemes such as share options and bonuses
and incentives which are not directly attributable to individual
performance.

Ordinarily a break of 6 weeks between work assignments for one hirer
will be sufficient to “re-set the clock” on the 12 week qualifying
period, however certain absences, for example due to ill health,
maternity or temporary cessation of work at the hirer will be treated as
suspending the qualifying period.  Periods before and after such
absence that meet specified criteria will be added together for the
purposes of the qualifying period.

Extensive anti-avoidance provisions in the Regulations are designed
to prevent agencies and hirers artificially constructing assignments to
defeat the 12 week qualifying period and tribunals can award individuals
additional compensation of up to £5,000 in the event that
anti-avoidance rules are breached.

Resources

The
Agency Worker Regulations 2010

Explanatory
memorandum

Department for
Business Innovation and Skills Impact Assessment

For further
information or to discuss the issues raised, please contact Colina
Greenway (colina.greenway@abbisscadres.com)
on +44 (0) 203 051 5711.

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