Gordon Brown promises to fast-track Agency Workers Directive before next general election

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Brown to fast-track agency workers rights

<< News archive September 2009

24th September 2009

Gordon Brown has pledged to fast track the introduction of new laws to give temporary agency workers the same rights as full-time employees.

Speaking to the TUC conference in Liverpool the prime minister promised to avoid postponing the UK’s adoption of the Agency Workers Directive, which must come into force by 2011, by introducing it to the statute book within the next few months.

The pledge is frustrating for employers and recruiters who had hoped the implementation of the law might be delayed and had warned of job losses in the face of a recession. They say the move will make it more difficult to dismiss temporary workers, and thus employers will think twice about taking them on in the first place.

One study earlier this month suggested nearly two-thirds of recruiters would scale back on their use of agency workers were the law to go through.

Speaking to union delegates, Mr Brown said: “I believe that the fight for fairness must include agency workers and so I pledge…that when parliament returns our new legislative programme will include equal treatment for agency workers”.

Under the new EU rules agency workers and temporary staff will be entitled to employment rights such as holiday and sick pay, after just 12 weeks in a job affecting 1.3 million agency staff nationally.

Shadow Business Minister Jonathan Djanogly warned the cost to new jobs would be massive. He said: 'We opposed these proposals in Brussels for six years and were amazed that the Government gave in to union demands to bring them in.

'This law will cost the economy £40billion over six years according to the Government’s own figures. It is hugely complex and will undoubtedly destroy thousands of jobs during a recessionary period. It is madness.'

Ann Swain, of the Association of Professional Staffing Companies, which represents recruitment firms, said the new laws would damage the employment prospects of thousands of well-paid contract workers.

She added: 'The Government appears to have a very outdated view of what a typical UK temporary worker looks like. The majority are not the vulnerable low-paid workers the EU is seeking to protect, but professional or skilled workers for whom this is hugely detrimental.

'It would be ridiculous to try to rush these changes through in order to curry favour with the TUC and we would hope the Government would delay implementation for as long as possible.'

Despite the Prime Minister’s announcement, the government has the discretion to delay implementation until October 2011.

John Cridland, deputy-director of the employers’ organisation the CBI, urged the Government to delay the new laws for as long as possible.

Mr Cridland said: 'It is imperative that the Government does not rush these complex proposals, and they should not be included in this Parliamentary session.

'Likewise, it is vital that business, agencies and workers are given time to adapt, and any changes must not be brought in before 2011.

Employment solicitor Susan Mayall of Pearson Hinchliffe Commercial Law, commented: “The move to push through the Agency Workers Directive (AWD) as early as next spring is widely seen as a bid to keep unions onside before next year's general election. It will give employers less than seven months to prepare for the changes and will probably deter firms who regularly employ agency staff from recruiting temporary staff.”