The DTIís Employment Status Review is set to complicate an already complex array of draft legislation which will dramatically affect our industry. This Review examines the effect of extending employment rights, such as maternity leave, redundancy, unfair dismissal etc, to atypical workers including agency workers. Under existing employment law the Government can extend employment rights to various groups of workers and it looks like this is now on the cards. Combined with the final draft of the EAA Regulations and the EU Agency Workers Directive (AWD) this represents a triple whammy for the recruitment industry. The consultation periods for these three proposals expire from October 2002.
Some of the implications of all the proposed legislation would be that:
1. Agencies would have to provide temps with similar pay and benefits to the clientís workers;
2. Temps would become entitled to the full range of employment rights from agencies;
3. Agencies would be subjected to far more onerous operating conditions;
4. Temp-to-perm fees would first be restricted then banned altogether.
ëUnless the Government is stopped the recruitment industry and the flexible UK economy as we know it will be irrevocably damaged. It is not only recruitment agencies that will be affected by these regulations. Most of the increased costs of using temps will have to be passed on to end-users. The short consultation periods for these three proposals means it is important that agencies understand how their businesses will be affected and make their voices heard now.í Comments Adrian Marlowe, MD of specialist legal consultancy, Lawspeed.
Lawspeed is running a series of nationwide seminars to help recruitment agencies understand the implications of all the proposals. For more information call 01273 236 236 or visit.
Stand up to triple whammy of new legislation
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