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Survey highlights need for Government to focus on practical implications of the 12 week agency workers deal
The REC is urging the Government to recognise the practical realities of the 12 week deal as new research reveals real concerns over the practicalities of working out equal pay for temps and a possible surge of employment tribunals.
The survey of 300 recruiters, carried out by the REC, the professional body representing the UK’s private recruitment industry, has found that the majority of temporary assignments will be affected by the legislation which will give the UK’s 1.2 million temporary workers equal treatment as permanent workers after a 12-week period.
Almost half (48%) of respondents thought that the impact of equal pay would result in a 10% rise on the cost of filling a temporary position, largely due to the increased administrative burden.
Fifty seven per cent of respondents saying that the average assignment usually goes beyond 12 weeks, which confirms that the legislation could have a significant impact on the cost of placing temporary staff.
Key concerns for recruiters include:
- Determining equal treatment – only 27% of respondents thought that identifying equal pay would be relatively straightforward with 35% saying that their clients would struggle to identify a comparable worker to determine equal treatment
- Risk of employment tribunal cases – 66% of respondents stated that the legislation will expose them to a greater risk of having an employment tribunal brought against them at a time when their time and expertise is needed elsewhere
- Data protection violation – 68% of respondents think that clients will be uncomfortable disclosing information about the salaries and pay bands of their staff
- Cutting out confusion – 34% of respondents reported that they would set the rate of equal pay at the beginning of assignments to avoid worrying about the 12 week benchmark
- Admin over placing – 43% of respondents though that extra costs would be incurred by consultants being diverted from making placements to chasing up equal pay information
Commenting on the outlook for temporary work in the UK, Kevin Green, Chief Executive of the REC said: “Temporary work provides a vital route for people looking to get back into work and for businesses who need a flexible workforce so it is vital that UK implementation of the Directive is both practical and workable for employers and recruiters and doesn’t jeopardise job opportunities at such a crucial time.
“Our research shows that while recruiters are keen to make it work, there are some legitimate concerns over how it will be implemented in practice and how it will affect the use of agency workers in the long-term.”
He continued: “It is important to remember that this directive will affect a wide variety of people who work on a temporary or interim basis – from secretaries to marketing professionals, hospitality staff to finance personnel. The REC will work to ensure that the implementation of this Directive respects the different temporary work markets that make up the professional recruitment industry today.”
The REC is holding its second Agency Summit today (Thursday 27th November) to give both employers and recruiters a chance to share their views and provide input into how equal treatment for agency workers can be applied in the UK.
The event will culminate in the REC finalising its recommendations to the Government on the Directive, which has been developed through the REC’s Agency Work Commission.
The event will also see the launch of the Future of Employment Working Group draft White Paper for consultation. The final version of the White Paper will enable recruiters to plan ahead by focusing on the practical implications of the Agency Workers Directive and how the new regulations can work for the benefit of all.
