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Following this week’s confirmation that the EU Agency Workers Directive would progress to the next stage, the REC has today announced the setting up of  an ‘Agency Work Commission’ to ensure that new EU regulations do not have a negative impact on the UK industry.  

Although any new regulations will not come into force in the UK until 2010 at the earliest, the REC is taking the lead in ensuring  that the details of equal treatment provisions are workable and that the final text agreed by the European Parliament maintains provisions for flexible implementation in the UK.

The Government had initially mooted the concept of a Commission last April but this was superseded by the recent ‘deal’ agreed with the CBI and the TUC. Despite last week’s agreement in Luxemburg on the EU Directive, a number of issues still need clarification which is why the REC is taking the initiative to establish the Agency Work Commission.  

The initiative was initially discussed at the recent REC ‘Agency Summit’.

Commenting on the aims of the Commission, REC Chief Executive, Kevin Green says: “The agency work debate has been heavily politicised and it is now time to focus on the practical details of what equal treatment provisions might look like so that it meets the need of workers as well as employers.

"Getting these details right is crucial in order to maintain the dynamism of the UK’s  agency work market. Temporary and contract workers are a key element of a 21st century labour force and the aim of our Commission is to ensure that the EU directive does not suffocate our jobs market in a way that would cost flexibility for employers and opportunities for workers.” 

The REC has invited the TUC, the CBI and the CIPD to take part in this new working group and will be seeking input from other business organisations as well as recruitment experts, HR professionals and leading employment lawyers.  There are legitimate concerns over how equal treatment provisions might impact – for example, the REC estimates that it could cost the recruitment industry more than £10 million a week to establish the correct pay for temporary workers.

The aim of the Commission is to find practical solutions in order to make equal treatment work for everyone.   

The Commission will focus on a number of key areas that are key to ensuring that any new regulations are workable.

These include: 

·  The scope of what equal treatment covers;

·  How would the ‘comparator’ be established in practice;

·   Alternative dispute resolutions to avoid an upsurge in Tribunal cases;

·   Recognising the need to exempt limited company contractors;

·   Specific issues for smaller employers where there are no formal pay bands; 

·   Workplace agreements that would derogate from the regulations.  

Conclusions and suggested solutions from the different meetings will be provided to Government.  A final report will collate all the REC Commission’s conclusions and will be presented to UK Ministers and Members of the European Parliament.