press release



Employers warning over agency workers rights


20 February 2008


Employers may soon have to treat agency workers on an equal footing with permanent employees according to legal experts at Browne Jacobson.

Earlier this month the Court of Appeal ruled that in most cases agency workers have a contractual relationship with the employment agency and not the employer. They are therefore not entitled to the same rights as other employees.

Edward Benson, Employment Partner at Browne Jacobson, commented:

“The Court of Appeal’s ruling will be welcomed by agencies and employers, who had feared judicial expansion of the rights of Britain’s 1.4 million agency workers and subsequent undermining of the flexible labour market.

“However, the decision may only provide temporary respite for employers. Trade unions argue that the current legal position creates a two-tier workforce and MPs are set to debate a private members bill this month which if eventually successful will confer equal rights on temporary and agency workers.

“The United Kingdom has been under pressure from Europe to introduce laws that would give agency workers the same rights as permanent employees after only six weeks of continuous working for the same business.”

In the meantime, Benson outlines some dos and don’ts for end users so that temporary workers and recruitment agencies are clear that the relationship is between worker and agency – not between worker and end user:

Do

  • Maintain a periodical dialogue with the agency about its workers
  • Ensure arrangements for sick pay and holiday pay are made by the agency

 

Don't

  • Give agency workers an employee handbook unless you clarify that it is given for information only and does not apply to them
  • In documentation, refer to agency workers as employees
  • Apply company sick pay schemes or company holiday arrangements to agency workers

 

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