Cameron seeking to water down AWD

Employment Law & HR update 14/09/2011

Information has emerged that indicates that David Cameron is looking to dilute the new Agency Workers Directive (AWD) due to come into effect next month.

The new work regulations, which are being introduced under EU law, give temporary agency workers the same pay, holiday and maternity leave rights as full-time workers, after 12 weeks of employment.

It is understood that the Prime Minister's office has commissioned its own legal advice on the matter, which has concluded that the effect of the new regulations - which could cost British businesses as much as £2 billion every year - could be moderated.

Speaking before the Commons liaison committee, Mr Cameron said that certain parts of European employment legislation worked against the national interest.

"Some areas where [the single market] has been extremely frustrating is the working time [directive] and areas that have come in under health and safety…that are [really] labour laws that I think would be better dealt with at the national level," he explained.

"Britain has got some clear national interests that it needs to defend. We do have a flexible, open trading economy."

The AWD was first brought in by Labour, but was comprehensively re-examined by the Department for Business, Innovation and Skills, headed by business secretary, Vince Cable. The Liberal Democrat minister subsequently announced it would be implemented as planned, to the dismay of Conservative ministers.

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