New temp rights kick in but thousands miss out - Telegraph.co.uk

The UK regulations derive from European legislation which has been in the making for a decade.

But the Association of Professional Staffing Companies, which represents recruiters, warned on Tuesday demand for entry-level agency workers was being hit as employers chose not to hire temps due to the added expense under the new rules.

A number of recruiters, including high-street name Randstad, which places 25,000 agency workers a week, have warned they would consider exploiting a get-out clause under the rules to employ the workers directly, making them effectively permanent members of staff and no longer agency workers.

However, the permanent pay agency workers would be entitled to is compared to the agency's rates under these rules, not the employer to which they were assigned, meaning they would miss out on extra benefits.

Large employers including Jaguar Land Rover, Tesco, Premier Foods, Carlsberg and Morrisons have all admitted they were in talks with their recruiters about using the so-called Swedish derogation model.

And a number of surveys in recent weeks have shown employers intend to use fewer agency workers in the year ahead. One in three employers was considering sacking temps before the new rules kicked in, according to law firm Allen & Overy.

The CWU said many employers were being "unscrupulous" and acting against the spirit of equal treatment.

However, the Recruitment and Employment Confederation said demand for temps had actually increased compared to the same time last year.

Experts said that companies were reluctant to hire permanent staff in the current climate and some still saw temps as the most flexible option, despite the new rules.