Agency Workers - proposed Extension of Rights

Many businesses use temporary (or 'agency') workers to avoid the cost and hassle of taking on and administering permanent employees.  In most cases agency workers have fewer rights than employees (e.g. they have no right to claim unfair dismissal) and so are much less of a potential liability to a business and are easier to get rid of.

However, it has recently been announced that agency workers who have worked for 12 weeks are to be given similar employment rights to those of fulltime workers.  The Federation of Small Businesses (FSB) summed up the changes as "a disaster for small businesses" and stated that it expects many small businesses will stop using temporary employees.

Employers should consider now what it will mean for their business should these proposals become law.  If employers wish to avoid their agency workers being granted the same rights as employees (and the business inheriting all of the associated costs and potential liabilities) they should think about terminating contracts with agency workers before the end of the 12 week period.

If you would like us to review the terms any contracts you have with agencies or agency workers and to discuss your businesses' potential risks please contact Alistair Latham or Mark Daubney on 01482 324591.

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