Agency Workers Regulations 2010

So, the AWR are finally here after 11 years in the making. As I no longer work operationally in recruitment, I hadn’t done the research that I normally do when a new law appears on the horizon. I needed to remedy that situation, so as part of the committee for The Recruitment Society (Midlands), I put forward that our next seminar should cover this topic for recruitment agencies and all levels of HR Professionals within companies. Last Friday was the culmination of several months work, not least for the Chairman of the Midlands division Charles Hardy.

The event was held at Maple House in Birmingham and there were 4 speakers that together covered the subject in 1½ hours. This blog is in no way meant to equate to all of the knowledge that you will need for the AWR, but more as a catalyst to hopefully remind you of some of the key issues and possibly some additional research and review work to be planned.

First to speak to a packed room was Simon Horsfield, Partner at the Law Firm Pinsent Masons. He gave us the legal background and what the aims of the Regulations were. In summation, the Regulations are there to1

“� introduce ‘equal treatment’ for temporary workers supplied by an agency in terms of pay and employment conditions, access to permanent work and facilities�”. A key point for me was that the previous discussions and questions that I have been asked by recruiters had always been focussed on these rights applying once the temporary worker had completed 12 weeks and they had seemed to skip over the Day 1 rights of the worker – possibly because ultimately, this wasn’t their responsibility! Day 1 Access to permanent opportunities within the company as well as their facilities. The

Hirer is responsible for this Week 12 Equal pay, working time, rest periods and annual leave (as someone who would be

doing the ‘same role’ on a permanent basis) From the discussions afterwards and the Q & A session, it seems as though the thing that most companies are getting ‘hot under the collar’ about is the facilities issue and more specifically, the parking spaces - a very emotional subject in most companies!

If everyone in the company is eligible for a parking space, then from the start of the assignment this could be an issue, but from my 22 years experience in recruitment, that’s very rare. There are usually criteria to achieve the space and not everyone gets one, so that would be the same for the agency worker (AW). What’s key is the communication between the agency and the hirer before the assignments starts.

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Agency Workers Regulations 2010

Simon also explained about the ‘Swedish Derogation’. A lot of companies have seen this as a possible ‘opt-out’ clause from AWR, like the ‘waiver’ option was to the Working Time Regulations. To put it simply, it means that the AWR rights of an AW no longer exist when AWs are employed on a permanent basis by their temporary work agency or possibly though an umbrella company and receive pay in-between assignments. This solution is very likely to be tested in the courts and if they believe that it has been implemented solely to negate the rights of the AW, then it’s likely that penalties will be enforced.

This point led nicely on to the next speaker, Fiona McKay, MD from Seminars & Solutions. She started off by giving us an update on the recent publicity around David Cameron and his comments a few weeks ago about a review of the AWR. This was nothing new. Before coming into power, Mr. Cameron asked for the same thing back in March 2010, but bringing it up again a matter of weeks before it’s implementation seemed a bit last minute!

Fiona was party to the debate that was held at the House of Commons and explained that there would be no review this year and very unlikely for next year either. This is legislation that needs to have ‘case law’ applied to it, so it’s going to be a long time before the courts have ruled on real cases to define it further, before any changes are going to be made. Fiona’s company have been helping numerous companies to get ready for AWR over the past year or so and therefore had a very helpful list of ‘Recommendations to Hirers’. Now although the hirers are highlighted here, she was keen to impress that these points are what recruitment agencies should be checking with their clients and also should be aware of for themselves and ‘consulting’ with the business community to make sure that things are done correctly1 first time. Her recommendations were: - • Reduce your number of suppliers

Probably not something that agencies would welcome, but as a trainer in an industry that suffers from bad press occasionally, this is always my recommendation to any client. Work with those companies that are willing to work with you – and do so within the law.

• System alterations It may mean that systems and procedures may need to be adjusted to make sure that the AWR are complied with. What processes do you have in place to monitor the length of time that an agency worker has been with you? How do you fulfil your responsibilities from Day 1?

• Communication with recruitment agencies Critical, as the hirer may have done everything that they need to do, but if the agency puts a foot wrong, then it’s still both parties that will end up in court.

• Dialogue with Trade Unions If this is relevant to your business, then it’s something that should have been done long ago. What’s important is that dialogue is kept open and on a regular basis.

• Review T & Cs, collective facilities What is it that you’re offering your staff and how will this relate to temporary workers?

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Agency Workers Regulations 2010

• Undertake ongoing due diligence of recruitment agencies Make sure that you are working with the best. Set review meetings on a regular basis to make sure that all parties are aware.

• Document everything. Also make sure that your documentation is bullet-proof if a third party wants to see it.

• Information system for Agency Workers. What do you have in place to make sure that temporary agency workers can access the information they require?

• Line manager and end user training Always a key point for any new systems being implemented into a company, but unfortunately one

that is often missed. Fiona’s blog (Follow Fiona) gives the link to the guidance notes from the BIS (Department for Business Innovation & Skills) for everyone to read. http://www.bis.gov.uk/assets/biscore/employment-matters/docs/a/11-905-agency-workers-regulations-guidance.pdf

Our third speaker was Emily Morgan, the HR Consulting Manager from Reed Consulting, who had stepped in at the last minute for Linda Marshall and did a fabulous job. She gave us some interesting facts about a study she had been researching for the past year.

Emily reviewed 30 clients with a total recruitment spend of £150 million per year. They had 30,000 AWs working for them in 1,300 different roles and were being supplied by 50+ agencies. Her first point of reference was the average length of booking. When I was a recruitment consultant providing temporary workers, I know my average length of booking was 6 weeks, so not many of my clients would have been affected by the AWR if they’d been implemented 20 years ago! Emily’s survey clients had AWs for an average of 16 weeks. Over 50% of the 30,000 AWs would have been affected by the new regulations last year. In terms of revenue, the clients would have had an average 5% increase in costs which equated to £7 million. Only 5 of the 30 clients would have had to pay more that the 5% though. Her survey then went on to outline where the increased costs came from. We all thought that the discrepancy in pay from a temporary worker to a permanent employee was the obvious answer, but this only came in second on her list. Control of the agency pay rates / ordering processes was top. This shows that even companies with incredible spend on recruitment, still don’t streamline their processes or keep control of what the agencies are paying. I have always been an advocate of open book accounting and service level agreements with clients. If you’re working in true partnership with a business, there shouldn’t be any secrets. To see whether you are ready for the AWR, then Emily’s company have a diagnostic questionnaire on their website that you can take if you’re a hirer or you can direct your clients towards. www.reedgateway.co.uk/AWR

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Agency Workers Regulations 2010

Our final speaker was Andy Frost, the Logistics Director of The Recruit Group. We got an insight into the practicalities of the new legislation from a recruiter providing staff daily.

Andy provides companies with drivers and I was shocked to hear that apparently, the average age of a professional driver in the UK was 58. I think this was TRG’s average age as a search online revealed a still staggering range of 51 – 55 from different sources. (No issues on Age Discrimination in this sector then!) In his industry a lot of the clients have been requesting to discuss the ‘Swedish Derogation’ possibility and as a lot of their AWs work for them on a longer term basis, then this was an option open to them. What I got from Andy’s presentation was the work they had put in to make sure that they were aware of timelines at his company. They have created a system whereby at 6 weeks continuous work an AW will be flagged. They then have the opportunity to see whether they are still likely to be working at the company in another 6 weeks time, which gives them plenty of time to get the details they require from the client regarding equal pay and conditions. If an AW continues to 10 weeks, then another flag is raised by the system and this time a senior manager has to clear the booking to make sure that everything is in place if they go past the 12 weeks. I think this is a must for all recruitment agencies. What do you have in place to make sure that you are ahead of the law?

After the Q & A session, we were all treated to a fabulous lunch at Etc. Venues courtesy of Personnel Today who sponsored the event. Everyone stayed on to network and discuss the issues further and I only pulled myself away after an

hour, so as not to get a parking ticket, like I did at the last Recruitment Society seminar! An enjoyable and informative 3 hours that means I can now answer questions from recruiters with much more knowledge, understanding and confidence. By Angela Cripps - Midlands Regional Director - Lander Associates

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