Temporary labour leaders unite against guaranteed-hours rules for agency workers

Industry leaders warn proposals could undermine flexible work and harm the workers they are intended to protect

Leading experts from across the temporary labour market have united in calling on the Government to rethink plans to apply guaranteed-hours reforms to temporary agency workers.

Trade associations and independent experts representing different parts of the temporary labour supply chain have written jointly to the Government warning that the proposals could have significant unintended consequences for workers, businesses and the wider labour market.

While the group supports the Government’s ambition to tackle exploitative use of zero-hours contracts, it argues that temporary agency work is fundamentally different from other forms of zero-hours employment.

For many agency workers, flexibility is not something imposed upon them — it is a key reason they choose agency work. The signatories warn that applying guaranteed-hours obligations to the sector could reduce access to flexible assignments, increase costs and bureaucracy, and encourage businesses to move towards more exploitative models of engagement.

Chris Bryce, Chief Executive of the Freelancer and Contractor Services Association (FCSA), said:

“Industry leaders from across the supply chain are in broad agreement: these proposals pose a significant risk to the very workers they are designed to protect.

“The Government is right to address the use of exploitative zero-hours contracts in permanent roles. But agency work is fundamentally different, and these rules risk jeopardising flexible work opportunities for people who actively choose that flexibility.

“The objective should be to give people greater security and choice, not inadvertently take choice away. We are urging the Government to look carefully at the evidence and rethink the application of these proposals to agency workers before proceeding.”

The group’s concerns are reinforced by the Government’s own research, which indicates that a significant majority of agency workers are satisfied with their working arrangements.

This raises a fundamental question about whether the proposed framework is addressing a problem that exists across the agency workforce — and whether applying the same approach to agency workers could undermine the flexibility that many value.

The timing of the proposals is also a concern. The Government’s separate consultation on reforming the regulatory framework for agency work has recently concluded, but its response has yet to be published.

The signatories argue that it is difficult to assess the impact of guaranteed-hours obligations on agency workers until the Government has set out its approach to the wider regulatory framework. The proposals must also be considered alongside the Government’s commitment to consult on a simpler employment status framework.

The joint letter identifies several potential unintended consequences, including:

• changes to how workers are engaged, potentially affecting their employment status;
• significant additional administrative burdens for agencies, businesses and other intermediaries;
• fewer opportunities for workers to access flexible assignments; and
• changes to business models that could ultimately weaken worker protections.

The group also warns that higher costs and reduced flexibility could discourage hiring, constrain business expansion and deter investment — potentially resulting in fewer jobs and undermining the security the reforms are intended to deliver.

The signatories are therefore calling on the Government to pause and reconsider the specific application of guaranteed-hours proposals to temporary agency work, particularly while the wider agency work regulatory framework remains under review.

They have offered to meet with the Minister and officials to discuss the practical implications of the proposals and how the Government’s objectives can be achieved without reducing the flexibility and opportunities valued by agency workers.

ENDS

Notes to editors

The joint letter was submitted to the Government following its consultation on ‘Ending one-sided flexibility: reform of zero hour and similar contracts’.

The letter has been signed by trade associations and independent experts representing different parts of the temporary labour market. They are:

• Association of Labour Providers (ALP)
• Association of Professional Staffing Companies (APSCo)
• Freelancer and Contractor Services Association (FCSA)
• Professional Passport
• Recruitment and Employment Confederation (REC)
• The Employment Agents Movement (TEAM)
• The Employment Status Forum
• The Recruitment Network (TRN)

The signatories share the Government’s objective of improving fairness at work but are calling for further consideration of how guaranteed-hours reforms would operate in the distinct context of temporary agency work.

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