The Agency Workers Regulations will not be scrapped

Following the media coverage and general industry discussion last week regarding the implementation of the Agency Workers Regulations 2010 (AWR), Blake Lapthorn's Recruitment sector group provides its views.

The Daily Telegraph published a front page news article on Tuesday 6 September 2011, which stated that the Prime Minister's Office had secretly obtained legal advice on how the AWR could be watered down or how implementation could be avoided entirely. With the AWR due to come into force in less than a month's time on 1 October 2011, this news engendered wide discussion.

The AWR, once in force, will give agency workers similar rights to comparable direct hires after they have completed 12 weeks work in the same role with the same hirer, as well as some rights from day one. Staffing companies and their end user clients have already spent vast amounts of time and money on planning for the changes.

There is apparently a concern that the Department for Business Innovation and Skills (BIS) 'gold-plated' the AWR by making them more severe than they need to be. However, it seems that any such areas identified are few and are likely to have resulted from union requirements during consultation.

The Daily Telegraph article also suggested that the UK could avoid implementing the EU Temporary Agency Workers Directive altogether, in other words, not bring into force the UK AWR which implement this EU Directive. However, the resulting claims and financial penalties that the Government would face from the European Commission as a consequence suggest that, particularly in the current economic climate, this is not a realistic option.

The Recruitment and Employment Confederation reported on Wednesday 7 September 2011 that it had received confirmation from BIS that the AWR will come into force as planned. It was confirmed yesterday by BIS deputy director, Peter Stephens, at an Association of Professional Staffing Companies House of Commons event that the AWR will definitely be implemented on 1 October 2011.

Whether The Daily Telegraph story was political spin or a real effort to address important concerns with the AWR, it is clear that it is too late for any major changes to be made to the AWR before they come into force on 1 October.

For further information, please contact:

Bridget Wood, partner and head of Recruitment sector group on +44 (0)20 7814 5426 or by email at bridget.wood@bllaw.co.uk.

Stephanie Slanickova, associate in our Recruitment sector group in London, at stephanie.slanickova@bllaw.co.uk or on +44 (0)20 7814 5422

Hayley Dear, solicitor in our Recruitment sector group in London, at hayley.dear@bllaw.co.uk or on +44 (0)20 7814 6900