The Financial Times has reported that the Confederation of British Industry (CBI) is calling for an early review of the Agency Worker Regulations (AWR) warning there are already signs that the new regulations are costing jobs.

The CBI conducted a survey in August and September and found that 20% of employers were planning to reduce the use of temps over the next 6 months. The CBI is keen to simplify the rules of the legislation.

However, the Recruitment and Employment Confederation (REC) has an alternative view and considers that the recent changes will not be damaging and only expects an initial fall initially with more temps being used in the long term

It appears BIS have advised REC that the implementation of the Agency Worker Regulations (AWR) will go ahead as expected.

To see the article, visit: www.rec.uk.com/press/news/1744

The Daily Telegraph has reported that David Cameron's office secretly commissioned independent legal advice on whether the Agency Worker Regulations could be amended to reduce their negative impact upon UK companies. It has been suggested that the legislation will significantly increase business costs and hamper their efforts to grow.

Downing Street has been told by lawyers that the Business Secretary's department has "gold-plated" the legislation with additional rules that need not have been included, despite a pledge by the Coalition not to introduce unnecessary regulations that undermines business.

Mr Cameron's advisers are weighing up whether to remove some of these provisions. Senior aides to the Prime Minister are growing increasingly alarmed about the potential economic impact of the Agency Worker Regulations after warnings that it could derail the fragile economic recovery.

In the event that the UK Government does not implement the AWR, it is likely to be in breach of European State Aid legislation which could have the effect on UK employers of temporary labour having to repay any financial advantage they receive. We have already seen this argument from Government when the holiday pay NIC concession was withdrawn. On this basis, David Cameron would not be keen on a refusal to implement and may seek to tweak the regulations around the margins so he is seen to “push back” and avoid a “gold plated” implementation strategy. We could see some last minute changes affecting limited company contractors, re-defining the use of a comparator and maternity rights. An exclusion for umbrella contractors is, however, extremely unlikely

The full story can be found at: www.telegraph.co.uk

The new Agency Worker Regulations (AWR) was yesterday amended by a new Statutory Instrument (SI), which was laid before Parliament on 3rd August. The amendments to the legislation will take force on 1st September. The following changes have been made:

• Regulation 14 - details steps to protect your company if a worker unequal treatment claim is made.
• Regulations 10 - PBA is no longer “during any period under the contract” but now “after the end of the first assignment under that contract.”

To see the new SI, click here: http://www.legislation.gov.uk/uksi/2011/1941/pdfs/uksi_20111941_en.pdf

On 27th May 2011, BIS issued a revised version of the recent AWR guidance.

To view the revised version, follow this link: http://www.bis.gov.uk/assets/biscore/employment-matters/docs/a/11-949-agency-workers-regulations-guidance

To see Aspire's interpretation of the changes, follow this link: http://www.aspirepartnership.co.uk/BriefingSheet.aspx?nid=7

BIS has recently issued further guidance to supplement the Agency Worker Regulations which are to be implemented in October 2011.

The new version contains clarification of several points which may shift your interpretation of how to implement the new legislation including the use of a derogated contract. The main issues are detailed below but, if you would prefer specific advice tailored to your business need please contact Alan Nolan or Karen Weston – contact details can be found on our web-site; www.aspirepartnership.co.uk

1. When using a Regulation 10 ‘derogation’ contract, the requirement to provide equivalent paid holiday entitlement is excluded. The requirement to provide equivalent annual leave (unpaid) continues.

2. If an agency worker refuses a suitable offer of employment they may, subject to the terminology of their contract of employment, forfeit their right to pay between assignments.

3. When an agency worker resigns their contract of employment they forfeit entitlement to pay between assignments.

4. Resetting the clock to zero – breaks of more than 6 weeks reset the clock to zero. The time period was previously worded “6 weeks or more”.

Final guidance upon the Agency Workers Regulations has been released by BIS. The guidance can be found at www.bis.gov.uk

Draft guidance upon the Agency Workers Regulations has been released by BIS. The guidance can be found at www.bis.gov.uk

More to follow.....

A written ministerial statement from Edward Davey, Minister for Employment Relations, Consumer and Postal affairs: Department for Business, Innovation and Skills, was issued on 19th October 2010.

Back in 2008, the CBI and TUC, in conjunction with the previous administration, brokered a deal which provided the legal basis for the legislation that is to be introduced. Prior to the general election, Jonathan Djanogly, then Shadow Business Secretary, indicated that if the Conservative Party was elected, they would review the proposed legislation. Edward Davey has now confirmed that the Government will not be proceeding with any amendment of the Regulations because of legal constraint imposed by the Confederation of British Industry (CBI) and the Trades Union Congress (TUC) deal.

So, what do we know?

The Agency Workers Directive will be implemented in the UK on 1 October 2011 through the Agency Workers Regulations 2010. The purpose of the Directive is to provide temporary agency workers with equal treatment in terms of basic working and employment conditions as if they had been employed directly to do the same job.

Having all waited to see what amendment the new coalition government would make, we have now established that the draft regulations will be implemented in their current format.

The Department for Business, Innovation and Skills advise that their officials will be developing the guidance with key stakeholders, (to include representatives from agencies, hirers and agency workers). They hope to publish draft guidance early in 2011.

Aspire Business Partnership LLP will be working with its clients to ensure that the ramifications of the Directive are understood and the impact is minimised. Further briefings will follow as guidance is released.

For a full copy of the ministerial statement click here