Last month’s European legislation giving agency workers new rights understandably caused some grumbling among employers already struggling in difficult trading conditions.

The Agency Workers Directive gave temporary workers in the private, public or voluntary sectors across the UK entitlement to the same basic employment and working conditions as if they had been recruited directly, if and when they complete a qualifying period of 12 continuous weeks in the same job.

The improved conditions include access to facilities such as crèches, canteens and transport services from the first day of employment. Agency workers are also now entitled to information about internal vacancies for which they can apply.

After 12 weeks in the same role with the same employer, agency workers will be entitled to the same pay, holiday entitlement and working hours as permanent staff, and will also receive improved maternity rights.

However, they will not get occupational sick pay, redundancy pay or health insurance.

Keith Clay of Parkhurst Hill says: “While the direct cost of providing equal treatment to agency workers will fall on employment agencies, they may seek to pass on these costs to hirers in rates charged.

“If employers are unwilling to accept the additional costs, we may find that they simply make sure workers don’t meet the qualifying period - or they may bring agency workers in-house or even stop using them altogether.”

Employers need to take note that the regulations envisage that equal treatment can be measured against comparable employees in terms of pay, the duration of working time, night work, rest period and breaks, annual leave, pay for bank and public holidays, shift allowances, overtime rates and unsociable hours premiums.

Interestingly, the regulations do not confer employee status on agency workers, who will not therefore have the right to claim, for example, redundancy pay or unfair dismissal.

For further information contact Keith Clay.