Firms warned over new agency worker rules

Under the regulations, any benefits such as car parking, crèche, prayer room and canteen facilities, must be made as equally available to agency temps as they are for the employer’s permanent members of staff from the outset of the assignment.

After 12 weeks, temps will be entitled to the same basic employment and working conditions. These include pay, overtime, shift allowances, holiday pay and bonuses attributable to individual performance. Failure to comply with the new regulations could mean hundreds of thousands of businesses in the UK could be fined.

Employment tribunals will be able to order compensation without any limit in cases where the same employment conditions aren’t provided after 12 weeks. Employers who deliberately try to avoid the regulations by, for example, rotating temps between different roles or taking them on under a series of short assignments, will be liable for an additional penalty of up to £5,000.

The regulations only cover basic working conditions. Temps will not be entitled to benefits such as occupational sick pay, redundancy pay and health insurance.

Tom Watkins, from the York office of Dickinson Dees, warned SMEs on the potential impact. He said: “SME owners and managers need to familiarise themselves with the new regulations to avoid potential costly employment tribunal claims. All staff records must be kept up to date and temporary staff carefully monitored. It is advisable to produce an ‘introduction pack’ setting out clearly and concisely what agency workers can expect from their employment from the outset.”

Mr Watkins continued: “Small businesses look for flexibility and for cost savings by employing temporary staff. This is no longer the case.”