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New rights for agency workers from October

Employment Law & HR update 30/09/2011

From 1st October, agency workers will get new workplace rights. If your business uses agency workers on any basis you need to know how the new regulations could impact on your business so you can plan accordingly.

What new rights will agency workers have?

The new rules are the result of an EU-wide requirement and include: “Day one” rights; and Rights after 12 weeks’ continuous work

Day one rights

From the moment they start work in your business, agency workers will have the right of access to any facilities you offer to permanent staff. These include works canteens, childcare or car parking facilities. They will also have the right to be notified of any relevant job vacancies.

Rights after 12 weeks

After 12 weeks in the same job, agency workers will be entitled to many of the same terms and conditions as comparable permanent employees. The terms and conditions include: basic pay; overtime and allowances; rest breaks; holidays and some bonus and commission arrangements. However, they do not include occupational sick pay, enhanced maternity, paternity and adoption pay, redundancy pay or pension arrangements.

What are the implications for my business?

In many cases, there will still be good business reasons for using agency workers. The important thing is to understand your options and the implications for your business.

Note that the new rules don’t mean that agency workers will automatically become employees of the hiring business - the law on this is unchanged.

What should I do now?

You must review the use of agency workers within your business in order to comply with the new law. Then, you need to consider whether, and how, you use agency workers to meet your business ambitions.

Do it now!

  • Check if you currently have any agency workers in your business
  •  Review any rules about agency workers’ use of workplace facilities, such as canteen, car parking and transport facilities
  •  Put procedures in place to notify agency workers about job opportunities
  •  Review the use of individual agency workers before 12 weeks' service is attained
  • Ensure your line managers understand these new requirements.

Plan to do

  • Consider how your business uses agency workers and how often they are hired for over 12 weeks
  • Compare the costs and benefits of agency workers against permanent staff in the light of the new rules
  • Discuss the options and costs with the employment agency you use
  • Key points
  • From 1 October, agency workers are entitled to certain day-one rights including access to facilities and to permanent employment opportunities
  • After 12 weeks' service, agency workers become entitled to equivalent terms and conditions as permanent staff, with some exceptions.
  • Exceptions include occupational sick pay, maternity, paternity and adoption pay, redundancy pay, and pension schemes
  • The 12-week qualifying period for equivalent terms and conditions does not start running until 1st October 2011.

 

If you would like further information, and already subscribe to NatWest Mentor, please call the Advice Service. If you would like more information on how Mentor could help your business in situations like this and many others, contact us today for information.

 

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