Agency Workers’ Regulations Impact Analysis Fact Sheet
Whilst the new Government is committed to reviewing all recent legislation, we believe that the Agency Workers’ Regulations themselves are unlikely to be significantly changed.
Our first series of fact sheets focused on providing an insight into the Regulations and this series will make some suggestions as to actions you might consider taking prior to the Guidance being available.
The effects that the Regulations will have on individual businesses will vary significantly depending on a range of factors. A detailed analysis of the potential areas of impact and potential mitigation will be the best preparation for a smooth implementation with your labour providers when the Regulations come into force on 1st October 2011
Quantify the usage of flexible labour in your processes
Historical information on how many, where, when and for how long, will provide some good insights into what issues you may face but you should also consider what your business needs are going to be in 2012 and beyond.
In many organisations the last few years of recession will have distorted the normal situation and your longer term recovery plans may well require different working practices than before. Forward budgetary planning will demand accurate cost information and any changes may be able to be phased in over the next year.
Clarify how the 12 week qualifying period will operate
If your bookings will usually be of short duration (less than 12 weeks) then the likelihood of large numbers of your temporary workforce coming into scope of the Regulations is reduced. Consideration should be given to any risks associated with the use of several suppliers drawing workers from a limited local labour pool, which could result in loss of visibility when qualification occurs. If your processes require a level of training or are influenced by the experience of the workers, there may be additional costs associated with any increase in the normal “churn” of operatives.
Identify comparable employees in your location or elsewhere with whom equal treatment might be expected
If your requirements are for a longer term supplementary workforce then you should be looking to see if there are employees dong the same or broadly similar tasks who would be regarded as the Comparator for agency staff. Because of recruitment freezes or using temporary workers only in some functions, there are no comparators in your specific location so check if there are any in other locations of your organisation. Care should be taken to ensure that, if any new permanent staff taken on in the coming year establishes a Comparator, their pay and conditions are at the levels you would want to apply to agency workers in 2012.
Establish what, if any, additional cost will result from giving equal treatment
A large number of temporary workers work on unique assignments for which there is no direct Comparator; other assignments recognise the temporary nature of the contract or the scarcity of the skills provided by paying at parity or even above permanent rates, in which case there may be no or minimal additional costs. Where there is a differential in basic pay, premiums and incentives, the cost expectations should be budgeted accordingly. One of the key cost implications will occur when your comparable staff enjoy holidays above the statutory minimum 28 days. Perhaps making adjustments to your comparable entitlements in good time might mitigate the cost?
Review your internal procedures for booking and managing agency workers
You will have responsibilities under the Regulations that could lead to liability if a complaint is upheld. Now would be a good time to make sure your hiring managers understand the likely affects on their activities and that they will have the procedures and information necessary to work with your providers during implementation and beyond.
What can I do next?
Hewitson Walker will be pleased to work with you to begin to assess what, if any, impact the Regulations may have on your business. To get in touch with Hewitson Walker, please contact 0845 603 4356.
Hewitson Walker Accountancy Recruitment 0845 603 4356