All businesses, including small- to medium-sized enterprises (SMEs), should re-appraise their policies towards agency staff following the Agency Workers Regulations 2010, which came into force on 1 October 2011, said the firm.
Paul Cotton, partner for Eversheds’ human resources practice group, told FoodManufacture.co.uk: “The new regulation provides that the basic working and employment conditions (duration of working time, overtime, breaks, rest periods, night work, holidays and pay) of temporary agency workers should be, for the duration of their assignment at a hirer, at least those that would apply if they had been recruited directly by that hirer to occupy the same job.”
For more information about the new rules, book your free place at Food Manufacture’s SME Business Leaders' Round Table at Eversheds’ Leeds office on November 29. Click here for more information.
Legal consequences
The rule is enforced after a 12-week qualifying period. From then, firms risk legal action if they do not offer equal treatment. “The law results in more legal consequences arising from poor management,” said Cotton. “Specifically, firms face the risk of claims of unequal treatment of agency workers compared with comparable permanent employees in relation to pay and paid holiday.”
Government figures show that average earnings of agency workers in the manufacturing sector is 76% of their permanent colleagues. “There is a real risk in some food manufacturing workplaces that, unless action is taken to address the new agency workers’ rights, qualifying workers could claim higher pay,” he said.
The challenge is greatest for employers with more than 250 staff where average hourly earnings of agency workers are 70% of the level of their permanent colleagues, according to the same statistics. That compares with 97% among employers with between 11 and 49 staff.
The new law also contains anti-avoidance provisions designed to catch hirers who intentionally structure agency workers’ assignments to avoid their new entitlements.
Flexibility
Agency workers now form a key part of the UK labour market totalling about 1.3M or 5% of the workforce. Moreover, 20% of all agency workers are employed in the manufacturing sector.
“They provide vital flexibility for many employers, such flexibility being particularly important during the current uncertain economic times, as well as providing an important route into permanent employment for the workers,” said Cotton.
For more information about how the new rules affect your food and beverage business, or a host of other topics affecting SMEs, make a date to attend Food Manufacture’s free SME Business Leaders' Round Table. It will be staged at legal specialist Eversheds’ Leeds office on November 29.
The half-day event is free to attend for UK food and beverage manufacturers and will offer wide ranging discussion on key business topics directly affecting the profitability of SMEs.
For more information, click here, telephone 01293 610231 or email foodmanevents@wrbm.com.