Agency Workers: Law and HR Best Practice

JSB’s most recent Agency Workers: Law and HR Best Practice conference took place on 28 January 2010 at the Kingsway Hall Hotel, Holborn. This timely event provided key legislative updates on the likely impact of the Agency Workers Directive (likely to be implemented in 2010) from McGrigors and Charles Russell, best practice guidance to ensure you avoid the pitfalls associated with agency staff and implied contracts from NHS Professionals, Hertsmere Borough Council and Hendons, an insight into the current temporary labour market from the REC, and a trade union perspective from the TUC.

On a day when the weather was awful and the economy miserable, Kevin Green, Chief Executive of the Recruitment and Employment Confederation (REC), commenced with a lively and engaging presentation discussing the future of temporary labour in the UK. This interesting session provided an overview of how the current economic climate might affect the use of agency workers. In the UK’s dynamic labour market, where 10,000 people are employed every day, even in the struggling economy, a plethora of talent is available and 5% of the working population are temp workers on assignment each week. Drawing on his own experiences as HR Director at Royal Mail, Kevin described how he was suddenly landed with the task of dealing with the 25-30,000 temp staff employed during the busy Christmas period whilst ensuring compliance with legislation. Kevin also discussed the Agency Workers Directive (AWD), which the REC are eager to implement in October 2010 (29 years after it was originally discussed!) when the economy is more stable and organisations are better able to cope with the new demands.

The next presentation focused on the legislative and political developments and the implications of the AWD from agency to end user, led by Angus Menzies of McGrigors. This informative presentation highlighted key issues that still need resolving, as well as the Working Time Directive, the withdrawal of the staff hire concession, sick pay, umbrella companies and the use of overarching employment contracts. Angus demonstrated that the UK needs as much flexibility as possible in this challenging economic climate.

After the break Hannah Reed, from the TUC offered a trade union perspective of the impact of the AWD. She described the TUC’s role in campaigning for decent employment rights and aiding unions to make the most of advances in employment protection. The TUC has championed the opinion that the labour force should be de-casualised and that all workers should have equal employment rights – an overall stance of fairness and flexibility.

The final presentation before lunch was based on avoiding implied contracts and was led by Michael Powner from Charles Russell. Michael touched on recent case law that has occurred in this area, such as, Bunce v Postworth, Hewlett Packard v O’Murphy and Cable and Wireless v Muscat. He demonstrated how confusion can arise regarding employment status as well as how to avoid an ‘implied’ employment contract and practical considerations to minimise liability risks.

After lunch, the presentations continued with two public sector case studies from David Grantham, NHS Professionals and Judith Fear, Hertsmere Borough Council. David spoke about how NHS Professionals deliver temporary staffing needs whilst satisfying the legal requirements, the practical issues – contracts, employment checks, learning and development, and pay and disciplinaries - whilst ensuring quality and value for money. In contrast, Judith discussed the benefits of the councils’ Comensura contract, the impact of temporary labour on permanent staff and how they are already preparing for the AWD.

The final presentation of the day was delivered by James Goldman from Hendons who described the somewhat confusing triangular relationship between the agency, agency worker and end user. His presentation clearly set out who was responsible for each part of the process, what issues could potentially arise and how to maximise the relationship to make it a successful and rewarding experience for all involved.

The day came to a close with a panel session which allowed delegates to have any outstanding questions answered by James Goldman, David Grantham, Angus Menzies and Michael Powner.

Before its implementation in 2010, there is still a long way to go before the Directives’ impact on UK businesses and the temporary labour market can be assessed. However, it is apparent that HR must have a good understanding of the Directives developments and prepare their organisation for any potential issues that may arise. With the new extension to their rights, it is vital employers plan and prepare when taking on agency staff to avoid being tripped up despite the attractions associated with employing temporary staff. Employers need to guard against underestimating the employment law covering agency workers.

NEW Dates Scheduled - Agency Workers: Law and HR Best Practice - London, 27 Sep 2010