To recall, in June 2008 the Council reached a political agreement on the draft Agency Workers Directive, whose aim is to harmonise Member States legislation on temporary workers. The deal between the Trades Union Congress (TUC), the Confederation of British Industry (CBI), and the then labour Government, reached in May 2008, on granting equal treatment to workers employed via temporary work agencies, has opened the door for an EU agreement on the issue. Gordon Brown has agreed to provide temporary workers with the same rights as permanent workers as regards general pay, overtime arrangements, and holidays, after 12 weeks of employment.
Under the Temporary Agency Workers directive equal treatment will be ensured from day one for temporary agency workers compared to permanent workers as regards pay, holidays, working time, rest periods and maternity leave as well as equal access to collective facilities. Hence, the principle of equal treatment applies from day one. But, under the adopted text, it is possible for Member States to agree derogations from this through agreements between social partners at national level such as the 12 week period that Gordon Brown has established with the trade unions.
All the EU Member States have had three years to implement this directive into their national legislations after the entry into force. The new Agency Workers Regulations 2010 gives effect in UK law to the Temporary and Agency Workers Directive. This will harm the UK’s deregulated labour market, which will become less flexible and less competitive.The temporary workers pay and conditions won’t improve, in fact, it will be harder for temporary workers to find a job. The Temporary Agency Workers Directive imposes administrative burdens and costs on companies that, consequently, will take on fewer of temporary workers. The Department for Business has estimated that the new Directive will cost firms more than £1.8bn a year.
In 2008, Kevin Green, chief executive of the Recruitment and Employment Confederation, has called for a delay on the UK implementation of the Directive. He said “In the current downturn, temporary jobs are a vital resource for employers who are unwilling to take on permanent staff as well a providing opportunities for jobseekers. Temporary workers will also play a vital role as the economy picks up. It is essential therefore that we avoid adding any unnecessary bureaucracy and cost to the provision of agency workers.” According to The Financial Times, John Cridland, director-general of the CBI employers’ organisation, said: “There couldn’t be a worse time to implement this unwelcome directive. This is a further break on jobs when the priority should be creating opportunities. Some of the rules imposed by the last government were not required under the EU directive or the 2008 agreement and should go.” However, the Agency Workers Regulations have entered into force on 1 October.
