Demand for temporary workers unlikely to be affetced by AWR

THE demand for temporary staff is unlikely to change despite the introduction of the new Agency Workers Regulations, employment analysts have said.

The new regulations give temporary workers the right to receive the same pay and basic working conditions as permanent employees after they have spent 12 weeks in post.

With eight out of 10 employers set to increase temporary staff over the next quarter – according to research by the Recruitment and Employment Confederation – the legislation will have a significant impact on businesses.

Chris Piggott, a partner and employment law specialist at Irwin Mitchell’s Birmingham office, said with most people expecting the new legislation to act as a disincentive to temporary workers, the new research was surprising.

“Most people expected the AWR would act as a disincentive to employers to utilise temporary workers if the main benefits of so doing – flexibility and reduced labour costs – are potentially going to be eroded,” he said.
 
“However, many employers are involved in industries where demand fluctuates, which means that the use of agency workers is both common and necessary. In addition, the current economic climate also means some businesses are reluctant or simply unable to recruit permanent staff.”
 
He said that while use of agency workers may not change, employers still needed to be fully aware of the impact of the AWR.
 
“Our experience suggests employers will continue to use agency workers mainly because they have to but, as the REC report indicates, they will need to be alive to the effects of the 12-week equality rule. Many of our clients are looking at how they can implement recruitment processes to ensure that the effects of the AWR are minimised,” said Mr Piggott.
 
“Rather perversely, the AWR looks as though it could therefore have a detrimental impact on temporary workers, because employers may be less likely to engage them on assignments on a long-term basis, and earlier terminations may become the norm to avoid the effect of the 12-week rule.

“All employers operating on this basis will need to have one eye on the ‘anti-avoidance’ provisions of the AWR when planning agency worker recruitment programmes.”