The reality is that there are a number of practical issues that employers need to work through with their recruitment partners.??With the regulations now in effect, the media spotlight has fallen on how leading employers are choosing to implement AWR, with a specific focus on new models of supply, such as the so-called 'Swedish Derogation'.
Under this model, the recruitment agency essentially becomes the employer of the temporary workers and has to guarantee extra payments including paying the workers between assignments as well as additional payments if the contract is terminated.
Media stories have picked up on the Trade Union argument that some workers may end up worse off under this model as it limits the application of equal treatment measures.
The reality is however that this model was included within the regulations after extensive consultation and can provide a perfectly legitimate way of supplying temporary staff. In fact, the Swedish Derogation can be seen as great news for temps who want to work in this flexible way as it provides more security and essentially means that they have been given a permanent job.??Some press reports may have given the impression that there are ways of simply 'opting out' of the AWR.
This is not the case. However, the regulations do allow for the development of new supply models such as the Swedish Derogation.??There are a few misconceptions over how alternative supply models can work in practice - for example, the perception that the Swedish Derogation removes workers from the scope of AWR entirely. Whilst the model does take workers out of scope of the equal pay provision, workers employed by their agencies under Regulation 10 contracts are still entitled to day one rights such as access to collective facilities and to all other equal treatment provisions following 12 consecutive weeks in the same role with the same employer.
It is in nobody's interest to create future problems by misinterpreting some of the new requirements which is why agencies within REC membership have invested huge amounts of time and resource in working with their clients to prepare for implementation.
One of the real issues with regards to these new models is whether they are commercially viable for agencies due to the additional risk and obligations they entail. This is something that recruitment providers will need to discuss with their clients.
On a general note, the key to making any new supply models work is to ensure strong collaboration and ongoing dialogue between employers and their recruitment partners.??It is also important to bear in mind that implementing whole new supply models will not be necessary in the vast majority of cases. In most sectors temporary staff already earn the same and often more than direct recruits and a high proportion of assignments - around 50% - are shorter than the 12 weeks threshold.
In addition, the new regulations do not impact on the flexibility and speed of supply that agency work provides which is why it will continue to form an integral part of business resourcing strategies - whether through a Swedish Derogation model or not.
Tom Hadley (pictured), head of policy and professional services at the Recruitment and Employment Confederation
