Agency Worker Regulations Overview
The Agency Workers Regulations (2010) come into force on 1st October 2011. The Regulations will give Agency Workers the right to equal treatment in terms of the same basic working and employment conditions as they would have been entitled to had they been directly employed by the hiring client to do the same or similar role. The Regulations limit this equal treatment to pay after the agency worker has worked in the same or similar role for for 12 weeks and to certain working conditions from day one.
What does Equal Treatment Cover?
- Pay – basic hourly rate, overtime and shift allowances
- Breaks and working hours
- Rest periods
- Annual leave
- Collective facilities
- Access to vacancy information
- New rights for pregnant agency workers
An Agency Worker has “Day One” rights of access to vacancy information and facilities
- Vacancy Information: The right to be provided with the vacancy information but no automatic right to be employed
- Access to Facilities: Same on site facility access as direct employees, such as canteen, childcare, car parking and transport services. These can be withheld provided there is objective justification
An Agency Worker has the right to equal pay after a 12 week qualifying period:-
Included
- Basic Pay
- Overtime
- Shift allowances
- Unsociable hours premiums
- Dangerous duties premiums
- Luncheon vouchers
- Bonus (attributable to individual performance)
- Annual Leave
Excluded
- Occupational sick pay (above statutory)
- Childcare Vouchers (salary sacrifice arrangement)
- Any payment in respect of occupational maternity, paternity or adoption leave
- Redundancy pay and Notice pay
- Any financial participation scheme e.g. share and option schemes
- Health and Life Insurance
- Loyalty bonus or any bonus not directly attributable to the amount or quality of work
- Pension payment (separate legislation in 2012)
- Subsidised gym membership and season ticket loans
- Discounts
The 12 week qualifying Period
- The agency worker must have completed the 12 week period by working in the same or similiar role
- Any week in which the Agency Worker works will count, even if it is just for one day
- If there is a break of 6 weeks or more the 12 week qualifying period starts again (the clock)
- In certain circumstances the clock will be suspended e.g. sick leave, pregnancy, maternity, jury service and client shutdowns
- The Agency Worker’s qualifying period can be accrued over a periodof time which exceeds 12 weeks
Swedish Derogation
- Agency Workers who are employed directly by the Employment Business are NOT entitled to equal pay (though they are entitled to all of the other rights by the AWR)
- Agency Workers will still be entitled to parity in terms of other working conditions including holiday entitlements and all day 1 rights remain
- The Agency Worker has a contract of employment, with all associated employment rights
- The Agency Worker has the right to be paid between assignments when there is no work for a minimum period of 4 weeks
- Entitled to a notice period upon termination of contract
- The worker must sign a statement to agree to the fact that by entering into the Contract of Employment, they waiver the rights to equal pay
Following our AWR seminars around the country, we have visited most of our clients to carry out an AWR impact assessment. The results of the impact assessment have proved to be extremely valuable and informative to our clients, who in some instances did not realise that the AWR will have an impact on their business and the way they operate from day one.
There is a common misconception that the Agency Workers Regulations is the Employment Agencies "problem". This is not the case, and it is important that Agencies work together with their clients to minimise the impact of this imminent legislation.
So for a free impact assessment contact your local branch today.