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Don't jeopardise agency work

Jeegar Kakkad July 31, 2009 08:59

I know the FT has a small circulation, so here's a joint letter from EEF, CBI, IoD, FSB and BCC on the value to employers of agency workers:

Sir, Today (July 31) the government's consultation on implementation of the agency workers directive closes. When deciding on the detail of the new regulations, it is vital that ministers choose an approach that does not jeopardise the future of temporary work in the UK.

We agree that agency workers should be properly rewarded, but it is also important that agency jobs are not lost because of ill-considered regulations. On this basis we make the following points to the government.

Under no circumstances should there be a requirement to establish equal treatment on the basis of a "hypothetical comparator". This would be extremely complicated to understand, particularly for small companies. Equal pay for agency workers must mean equality in terms of basic pay only. Many bonus schemes are complex and often relate to company performance, and most are calculated retrospectively. Any requirement to include bonuses would create huge administrative problems for employers.

And finally, implementation must not take place before autumn 2011, the latest date required by the directive. Whatever the government's approach to implementation, the directive is likely to reduce the appeal of hiring agency workers. With high levels of unemployment for the foreseeable future, it would be a terrible mistake to impose new regulations any earlier than necessary.

By following these points the government can avoid unnecessarily damaging the temporary work sector.

Neil Carberry,

Head of Employment Policy, CBI

Alistair Tebbit,

Head of Employment Policy, Institute of Directors

Adam Marshall,

Director of Policy, British Chambers of Commerce

Ben Burgher,

Chair of Employment Policy, Federation of Small Businesses

David Yeandle,

Head of Employment Policy, EEF

 

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