Demand for contract workers remains strong

A snapshot of the impact of the agency workers regulations shows that there is still significant bureaucracy and cost for agencies, but the demand for temporary or contract workers remains strong.

Agency group the REC is continuing to track the impact of the Agency Workers Regulations through a monthly monitor. This collates the latest data on the agency market as well as the practical feedback from recruiters who have been at the forefront of trying to make the new regulations work on the ground.

The EU-inspired rules give similar rights to temporary or contract workers after a 12 week qualifying period as exist for employees. Freelancers are exempt provided they operate as a genuine business.

Key messages from the latest AWR Monitor are:

• The new rules continue to create significant bureaucracy and cost for agencies, but the demand for temporary and contract staff has overall remained strong, despite a slight blip in some sectors.
  
• The REC's JobsOutlook report - which tracks the future hiring intentions - shows that the vast majority of employers plan to maintain or increase their temporary workforce in both the short and longer term.
  
• There have been very few early signs of workers instigating employment tribunals for alleged breaches of the new equal treatment requirements. This is something the REC will continue to monitor over the coming months.
  
• The regulations have had specific implications in specific sectors such as industrial, driving and education. The REC will continue to call on Government to review and streamline some of the bureaucracy for agencies and their clients.
  
• Recent meetings in Brussels have provided an update on how the Agency Workers Directive (AWD) is being implemented across the EU. The priority for the industry across Europe is to use the Directive as a lever for lifting barriers to agency work that still exist in many countries.

Tom Hadley, Director of Policy and Professional Services, said: "Implementation has been a huge challenge and the regulations have created specific issues in a number of sectors. However, the AWR has also provided an opportunity for many agencies to build stronger links with clients and to demonstrate their ability to make the new rules as workable as possible.

"The overall demand for temporary and contract staff has remained strong overall despite a slight blip in some sectors. Looking ahead, a key priority is to continue actively promoting the benefits of temporary and contract work through ongoing research and initiatives such as the Flexible Work Commission."