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AWD latest - REC delighted with temp to perm win but flags areas of concern for recruiters

The final regulations for the UK implementation of the EU Agency Workers Directive (AWD) were laid before Parliament earlier today. This is an important step in an intensive eight year lobbying campaign by the REC to ensure that the potentially hugely damaging regulations are workable for the recruitment industry.

REC Chief Executive Kevin Green was notified of the imminent publication and some of the key outcomes in a conference call yesterday afternoon with the Minister for Business, Skills and Innovation Pat McFadden.  

One of the major developments is the fact that the REC’s campaign to protect current temp to perm fee structures has succeeded with the Government agreeing not to impose potentially damaging restrictions in the form of a ‘reasonableness’ test on the fees charged by agencies. This would have been extremely difficult to enforce and so we welcome the decision to maintain the status quo.  

Commenting on today’s outcome and on the implications for the UK recruitment industry, Kevin Green says:   

“The positive outcome on temp to perm fees and the delayed implementation date are vital wins for the industry. We are pleased that a number of the practical recommendations from our Agency Work Commission have been taken on board despite heavy trade union pressure. There are a number of areas in the final regulations that give cause for concern and our priority now is to work with Government on the official guidance documents to influence the way that the new requirements on recruiters will be interpreted. The industry’s voice has been at the forefront of the political debate on AWD implementation, the next phase is about giving REC members the practical tools to work with clients and prepare for implementation."   

Highlighting some of the ongoing areas of concern for the industry, Tom Hadley, REC Director of External Relations, says:

"There are some real positives for the industry in addition to the implementation date and temp to perm fees – in particular the exclusion for self-employed workers.  However, a number of areas, give cause for concern such as a wider definition of pay and the issue of short-term repeat assignments which could result in temporary workers acquiring equal treatment rights with several hirers after 12 weeks of an assignment. The REC External Relations team will continue to work pro-actively with the Department for Business to find workable solutions and to develop supporting guidance documents for clients and recruitment agencies."

 On the specific issue of how the 12 week derogation period will be measured, concerns remain as to how the agency will deal with workers who are engaged on a series of ad hoc assignments with the same hirer. There is a risk that the current arrangements could create a burden on agencies who engage workers on multiple short term assignments. The Government has recognised that these short term working arrangements provide flexibility for both hirers and workers and the REC continue to stress that this needs to be reflected in the regulations and guidance. 

 A detailed analysis of the final regulations will be made available to members. The REC will also be producing a specific AWD tool-kit for members and will continue to build links with the Conservative business team in the run up to the general election.  

Click here for further information on REC's campaign. To view the response please see the BIS website.