The new rules for giving agency workers more rights that come in to effect in October present an interesting look at business ethics for many managers.

The Europe-wide agency worker regulations (AWD) are designed to protect temporary workers from exploitations by unscrupulous employers.

Basically, they give temporary workers the same privileges and rights as their permanent colleagues after 12 weeks of service.

Those rights include equality of pay and working hours plus holidays, start from October 1.

Many businesses are not keen on the regulations because the reason they employ temporary workers is to cut costs by not having to give them the same pay and conditions as permanent staff.

It will come as no surprise that lawyers have already found a workaround – the Swedish derogation model.

The Swedes undermined these agency worker rules by inserting an opt-out clause in the legislation.

The clause simply states that firms do not have to give temporary staff equal pay and other rights if they are employed by a third party but work on their premises.

This is where employment agencies and umbrella companies come in.

For years, business and other organisations have driven a coach and horses through employment legislation designed to protect workers by defraying their responsibilities to umbrella companies.

For instance, a contractor or consultant on a 12-month contract does not pick up holiday pay, sick pay or paid leave even though his or her workplace is the next desk to a permanent colleague. They may receive some extra pay, but they can lose their jobs instantly.

Many government departments – including HM Revenue and Customs – hire staff on these contracts and sanction employers ignoring workers’ rights.

Now, many organisations plan to sidestep the agency worker rules in the same way, by only taking on temporary staff employed by an umbrella company.

The twist for agency workers is the umbrella company has to pay them between assignments, but it remains to be seen whether this cash will come out of their earnings in some way.

Somehow, it doesn’t seem ethical that some businesses and organisations will profit by circumventing legislation aimed at protecting the most vulnerable workers from exploitation.

This article is filed under : , Legal, Leadership, Minorities, Equality Act 2010, equality strands, Protected charactersitcs, Role models

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