Big business divided on agency rights

With a Parliamentary private members' bill seeking to give agency workers the same employment rights as permanent employees due for its second reading tomorrow (Friday), and possible agreement on the stalled EU Temporary Agency Workers Directive on the horizon, the Chartered Institute of Personnel and Development (CIPD) has published the findings of a survey of employer opinion on increased rights for agency workers and the likely impact of the proposed EU Directive.

The survey of more than 1500 employers finds employers divided on the principle of equal rights for temporary agency workers and how long agency workers should have to work for an employer before qualifying for the same rights as workers on permanent contracts.

More than one in four employers responding to the survey are of the opinion that agency workers should never qualify for the same rights as permanent employees.

But one in five think that agency workers should be given the same 'pay and contract of employment' conditions from the first day of employment with a given employer. In all a third think this should apply within the first six months of employment, while a further third prefer a qualifying period of at least six months.

Fewer jobs

However, the survey findings also suggest that increased rights for agency workers could mean fewer jobs in the economy overall and block an important pathway into work for many jobless people.

Almost half of responding employers think the Agency Workers Directive would make the process of hiring agency temps more bureaucratic while 61 per cent think it will increase labour costs.

Well over a third of employers think the Directive would have a negative impact on their organisation with two in five saying it would have an effect on recruitment. Of the latter more than two thirds report that they would hire fewer agency temps though one third expect that as a consequence they would hire more workers on permanent contracts.

Practicalities

In light of the survey findings the CIPD contends that public policy debate on increased rights for agency workers should focus on the practicalities - especially the matter of the most appropriate qualifying period - rather than the principle at issue.

Mike Emmott, Employee Relations Adviser at the CIPD, said: "If agency workers are to be given the same rights as permanent employees it is crucial that we get the detail right. Our latest survey findings suggest that a qualifying period of at least six months is necessary to command the support of employers. However, with over a third of employers believing the agency workers directive will have a negative impact, the proposed independent commission will need to work hard to consider the risks associated with this policy if it is to allay employer concerns."

Background

The main issue facing freelancers is that any measure could be so widely drafted that it could affect contractors who do not want employment rights and could deter their clients from using them. The issue has been widely debated in Europe and in the UK with the trade unions arguing that temporary agency workers are denied employment rights, whereas the CBI and other big business has fought against any introduction of agency workers' rights.