Latest 'Business Brief' column from Red Kite Law

‘The Business Brief’ is the new column from Red Kite Law in the Carmarthen Journal.
By Donna Purchase, partner, Red Kite Law
There is always plenty debate in West Wales about the rights of Agency Workers.
Agency workers gained additional rights to pay and benefits under new laws that came into force on 1st October.
Business groups have complained that the changes could cost employers up to £2bn a year.
An agency worker is someone who provides work or services to an organisation, but is contracted via an agency. Contractors and workers on secondment may also be covered.
Day one rights:
Various legal protections are already in place for agency workers, so they have the right to the minimum wage and basic holiday rights. They will also now be allowed to use the same facilities as staff. So, for example, from the first day of employment they should be allowed to use the canteen, crèche, staff room and car parking. They must also be given access to information about job vacancies at the company and be given the opportunity to apply for them.
The right to equal treatment:
After 12 weeks in the same role with the same employer, agency workers will be entitled to the same basic working and employment conditions as permanent staff. This entitlement will not apply until 25th December 2011 at the earliest. These rights include pay, holiday pay, shift allowances and bonuses linked to personal performance, as well as pregnancy and maternity rights. They will also have the same rights to rest periods and working hours.
However, agency workers will not be entitled to all the same benefits such as pensions, occupational sick pay, redundancy pay, notice periods and medical insurance.
12-week qualifying period:
Some groups believe that businesses will simply lay off agency workers after 11 weeks to avoid the regulations. However, there are complicated rules when deciding whether an agency worker has completed the qualifying period of 12 continuous weeks. For example, continuity will not be broken where there is a break between assignments of less than six weeks.
Penalties:
In addition, if a pattern emerged of an employer repeatedly only having 11-week jobs, the worker could bring a claim to the employment tribunal. The Tribunals can order fines of £5,000 as well as awarding compensation for each worker if it considers that the employer has breached the regulations or is seeking to avoid them. Compensation is unlimited so the financial implications could be serious.
Employers should take action now to avoid liability. They should review their arrangements with agencies and ensure that all necessary information is provided to the agency from the outset. It is also worth considering various options that may be available to avoid or minimise exposure.
For further information you can contact me, Donna Purchase, on 01646 691093 or at donna.purchase@redkitelaw.co.uk.
Red Kite Law can be found on the internet on –
http://www.redkitelaw.co.uk