Commission Proposal for a Directive on Temporary<br>(Agency) Workers<br>

Tarlo Lyons *Stop Press*

The DTI has today published a consultation document asking temporary agency workers, agencies, employers and workers for their views on the impact of this controversial draft Directive. Whilst the current round of consultation
is not concerned with how the Directive (if adopted) should be implemented in the UK, the UK Government is concerned that the Directive should not cause a decrease in the demand for agency workers with negative consequences
both for agency and user enterprises in terms of employment opportunities and flexibility in labour markets. Interested parties have until 18 October 2002 to submit their comments to the DTI. The full consultation
document and contact details can be found at
http://www.dti.gov.uk/er/agency/directive.htm.
As we reported in our earlier e-alert
http://www.tarlolyons.com/PDFS/Stop%20Press%20-%20European%20Directive%2..., the draft Directive is based on the general principle of equal treatment of temporary workers. It would require
agencies and end clients to ensure that agency workers are afforded the same basic working conditions and benefits as comparable permanent employees of the end client unless it is objectively justifiable not to do so. Equal
treatment would not be required for posts of six weeks or less.
Many commentators, such as the CBI and REC, have already spoken out strongly against the draft Directive. They believe that it will have a negative impact on the flexibility of temporary resource and significantly increase
the administrative burden, and therefore costs, for end clients and agencies without necessarily benefiting temporary/agency workers.
One of the biggest question marks for UK agencies is the intended scope of the draft Directive. The draft Directive does not currently make it clear
what constitutes an agency or temporary worker for the purposes of the legislation. A temporary worker is defined as any person who is protected as a worker under national employment law. This definition is potentially
very wide as it is not limited to those persons who would be regarded as having employment rights in the UK - it also includes workers. Under national employment legislation this would include anyone who undertakes to
do personally any work or services for another party. This definition could potentially include contractors who provide their services through limited companies, particularly where end clients interview and select a specific individual to perform a role and that individual is named in the relevant assignment details or contract. Until the European Commission clarifies the intended scope of the Directive it remains difficult for many agencies,
particularly those specialising in supplying IT contractors, to know how or whether the Directive will affect them and their clients. It is also unclear
whether the Directive will unnecessarily cover ground that is about to be covered in the UK by the Conduct of Employment Agencies and Employment Businesses Regulations (which we understand are now scheduled to come into
force in the Spring following a consultation period this Autumn).

Want More Information?
For further information on the above please contact either Kevin Barrow
(kevin.barrow@tarlolyons.com), Bridget Wood (bridget.wood@tarlolyons.com) or
Frances Lewis (frances.lewis@tarlolyons.com).
Find out more about the work of Tarlo Lyons'' IT Personnel Group at