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Equal treatment of agency workers undermines flexibility

The Chartered Institute of Personnel and Development has hit out at the recent agreement to give equal rights to agency workers who have worked at a company for more than 12 weeks.

Under a new deal reached between the Government, unions and employers, agency workers will have at least the basic working and employment conditions that would apply to employees doing the same job but who had been recruited directly by the employer.

But the CIPD says this would be bad for business.

“Our research shows significant employer resistance to a qualifying period of less than six months, so the Government’s intention to push for 12 weeks is bound to cause a great detail of unhappiness among employers,” says Mike Emmott, employee relations adviser at the CIPD. “Undermining the flexibility of agency workers risks blocking an important pathway into work for many jobless people.”

It is hoped the deal will lead to an agreement in Europe for the Agency Workers Directive, which is to be discussed in Brussels next month. The directive proposes that agency workers get equal treatment at 0-6 weeks, but the UK Government is hoping to secure an opt-out of 12 weeks.

Government hopes the terms will be agreed so it can implement them in time for the next parliamentary session in September. Further consultation will occur between the TUC, CBI and the Government on the definition of equal treatment, compliance and anti-avoidance measures.

There has been an ongoing struggle between business groups and unions over the issue of extending agency workers’ rights, with business leaders worried that an extension could render such workers obsolete. Unions, however, have been pushing for the extension, saying that many agency workers are exploited in the UK. There were plans to set up an independent commission to examine the issue, but these plans have now been scrapped.