Agency Workers Directive - 250,000 jobs could be lost

Published on Dec 4, 2007 |

Europe's employment ministers are due to meet in Brussels tomorrow (December 5th) to discuss the Agency Workers Directive.

The Directive, which was first drafted five years ago, would force recruitment agencies to provide temporary workers with the same rights as permanent employees.

This dossier has been in negotiations for more than five years but has not been formally discussed since 2004.

Many industry commentators suggest that the Government will be unable to persuade fellow EU members to delay implementation of the Directive, despite suggestions that 250,000 private sector jobs in the UK could be at risk.

Most industry bodies in the UK are firmly against the Directive, as it is seen as a "one size fits all" policy which will not suit business in this country.

CBI deputy director general John Cridland has said: "A quarter of a million UK jobs are on the line if this draft directive goes through. The government has, rightly, been rock solid in opposing this legislation."

Alan Duncan (Shadow Business Secretary) said: "Of course all temps in the UK need to be paid a fair rate and legislation to help this is welcome. However, this would be bad for individuals, bad for companies and bad for the economic health of the country."

Commenting on the negotiations, Helen Reynolds, the REC's acting Chief Executive Officer, said:

"The REC supports good terms and conditions for agency workers but the current provisions in the directive on agency work would only add bureaucracy and uncertainty to the recruitment of temps, thus limiting job opportunities."

Industry Concerns

The Recruitment & Employment Confederation's central concerns with the current draft directive on temporary agency work include:

Added bureaucracy - Recruitment agencies often make placements within hours of being notified of an assignment, the necessity of identifying a comparable pay rate would add more bureaucracy into the process and slow it up.

Added risk - If a worker disputes their salary or treatment they could enforce this in an employment tribunal. This additional risk is likely to result in employers using provisions, such as overtime, to meet peaks in demand, thus reducing job opportunities for new entrants into the labour market.

Where's the gain? - Abuse against all workers should be cracked down upon. However, the introduction of equal treatment would not stop rogue employers, who are already breaking the rules, to suddenly change their practices. Better enforcement is the only way to crack down on these rogue operators.

IT Contractor Pensions - The last great tax break
IT Contractor Mortgages - Based on your hourly rate
Quay Accounting - IR35 experts, fixed fee
Free IR35 & Tax Review - Call ICS on 0800 195 3750
IR35 Insurance - Qdos contractor tax protection
Parasol PAYE Umbrella - Award winning service
Professional Indemnity Insurance - Essential cover
Income Protection (PHI) - If you're unable to work


Back to top
Search Contract Eye

 Our Partners
Quay Accounting
IR35 experts, fixed fee
Hiscox Office Insurance
Instant Online Quote
Free IR35 / Tax Review
Call ICS - 0800 195 3750
Contractor Accountants
Full Service, Fixed Fee!
Parasol PAYE umbrella
Award winning service
IR35 Insurance
Essential Protection
IT Contractor Pensions
The last great tax break



 Key Services
Income Protection
Don't get "crunched"!
Contractor Ltd Company
Instant online formation
IT Contractor Life Cover
Protect your dependants
Critical Illness Cover
Comprehensive cover
IT Contractor Mortgages
Based on hourly rates!



 IT Contractor Guides
Contractor Umbrella
Umbrella Co. Guides
Limited Companies
IT Contractor Guide
Contractor Accountants
Accountancy Directory
Corporation Tax
IT Contractor Guide
IT Contractor Mortgages
How to get the best rates
Contractor Insurance
Are you covered?
PAYE Umbrella Company
How umbrellas' operate
Contractor Banking
Choose a bank account
Security Clearance
How do you get it?
IR35 Insurance
Tax investigation cover
IR35 Contract
Contract review guide
Professional Indemnity
IT contractor cover
Umbrella Companies
Links to key providers
Parasol Umbrella Company
'My Parasol' portal

Stay up to date with our RSS feed | Terms of Use | About Us | Directory | Site Map | MSC Legislation | Income Shifting

Copyright © 2006-9, Contract Eye, All Rights Reserved.

Guides for UK Contractors - Umbrella Companies, Limited Company, IR35, Insurance, Accountants, Rates, Contractor Mortgages
Design by Blue Egg Web Agency