Pay and Benefits

David Cameron may remove some of the legislation
that has been drawn up for the Agency Workers Regulations (AWR).

 

Downing Street has sought legal advice over the impact of the new European law, according to The Daily Telegraph. The guidance concluded that the legislation had been “gold-plated” with additional rules.

 

The AWR will entitle temporary workers to the same employment rights as permanent staff. This includes elements such as pay, holiday and maternity leave. However, this only applies once a 12-week qualifying period has been completed at a single assignment.

 

Advisers are now reportedly deliberating over whether or not to remove some of these superfluous clauses. This is despite there being less than a month until these new provisions are due to come into force.

 

Concerns over the consequences of the new regulations are growing. It is anticipated that it will cost businesses almost £2 billion per annum – a figure which has the potential to further ruffle the fragile economy.

 

Martin Howe QC, an expert in European law, is reported to have been hired by Steve Hilton, Director of Policy, to help the Government to fully understand its options.

 

If the Government chooses not to adopt the directive in its current form then it could dilute the regulations and delay the planned implementation. Alternatively Howe has suggested Parliament seeks to introduce its own legislation which would overrule the European law; or it could choose not to introduce the AWR. However, this could result in fines from the European Union (EU) which could reach millions of pounds.

 

A Daily Telegraph source said: “The advice showed that there are elements of gold-plating of the EU directive that could easily be stripped out. For example, people who set up their own firms and then contract their services to other companies need not be covered. These changes could be done relatively easily through regulations.”

 

However Christian Berenger, Business Development Director at Auto Time Solutions, believes that many firms have already spent a lot of time and money preparing for the Regulations.

 

"Many companies have developed new working practices and made significant investments in time and attendance software to ensure compliance of the new Directive. Any changes to the rulings will affect these newly formed policies and have a dramatic financial impact on those who thought they were readily prepared,” he said.