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Temporary and contract workers play an important role in providing flexibility for UK businesses and from the 1st October 2011, agency workers will be entitled to the same basic pay and benefits as permanent employees after 12 weeks in the same assignment. Employment Law specialists Citation advise that Employers should be thinking about their use of agency workers and clearly understand why they are using them. Employers also need to ensure they have appropriate systems and processes in place to track the use of agency workers and be aware when they are accruing rights. The main feature of the Agency Worker Regulations is to enable agency workers to the same basic working and employment conditions as if they had been recruited directly by the end-user client such as; - The same basic pay as permanent employees including areas such as some bonus schemes
- Contractual overtime and shift allowances
- Holiday allowances
- Accessing the staff canteen
- Childcare
Agency workers who are also supplied by ‘umbrella’ companies and act as an employer to agency contractors are also protected however, self employed are not protected by the new regulations, providing they are genuinely operating in business on their own account. The cost of using temporary workers will inevitably increase, and many employees are considering using casual workers instead to create their own in house ‘bank’ of labour they can call on. However, this can lead to a risk that over reliance on certain casual workers could result in a pattern of work where it could be argued they are actually employees. Some hirers may try to structure the placements for fewer than 12 weeks to deliberately break the qualifying period and avoid this protection accruing. This is prohibited and can attract a fine of up to £5000. We encourage all businesses to look at their use of agency workers and understand what is required of them. For more information about Citation and the services they provide, visit the Citation website at http://www.citation.co.uk or call 0845 844 1111. REF: CEL-HS-160811
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