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Temp agencies face admin nightmare on equal pay
July 2008
Recruiters are concerned that equal pay proposals for agency workers after 12 weeks could prove to be an administrative nightmare and may cost contracts.
Agencies worried about how equal pay hours and holidays for temporary agency workers after 12 weeks will be implemented, questioned an expert panel at a Recruitment and Employment Confederation (REC) summit on 2 June.
The proposals announced by Gordon Brown last month after a deal was struck between social partners the Confederation of British Industry (CBI) and the TUC, will be put to the EU Employment Council on 9 June as a compromise to the current European draft Agency Work Directive.
The REC said recruiters must lobby their MEP’s to reduce the impact of equal pay legislation.
Neil Carberry, head of employment at the CBI, told Recruiter that the proposal does not include occupational benefits such as pensions, sick pay and maternity pay.
Carberry estimated that it would be April 2010 at the earliest before any legislation on equal pay became active in the UK.
However, recruiters are worried that the impact throughout the whole industry has not been properly assessed.
Robin Davison, group managing director of engineering recruiter Wolviston Management Services, said there are very few assignments in the oil and gas industry for 12 weeks or less.
He told Recruiter, “Anybody in the technical engineering marketplace really should be concerned about this, Margins have been squeezed so tightly over the past five years that there is no give now”.
Sarah Veale head of equality and employment rights at the TUC, said the unions had been “caricatured” in the press and that the TUC was “certainly not anti-agency work.”
Sarah Gordon, associate director of multi-sector recruiter Sammons Group, told Recruiter that if comparators and parity of pay were not looked at properly it “could cause a huge administrative headache, especially for smaller recruiters who don’t have the resources of larger players.”
Source: Recruiter 11 June 2008
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