January 13, 2012
Many temporary workers are under threat of losing their jobs due to the new EU Agency Worker directive which will require employers to give short-term staff the same rights and pay as permanent employees. The Association of Professional Staffing Companies (Apsco) carried out a survey of 42 recruitment agencies which showed that 29 per cent planned on terminating short-term contracts before the 12 week trial period had ended. The new rules came into force in October 2011 and so the first job losses taking into account the trial period are expected to take place this month. The Chief executive of Apsco, Ann Swain predicted “tens of thousands” of employees would be affected. “At a time when unemployment among young people has surpassed one million, any barrier to securing work has to be questioned,” Some recruitment agencies have already reported the sacking of temporary staff. Phil Hutchinson who is the operations manager at g2 recruitment, said: “Some clients have already begun the process of terminating contracts.” These new rules come at a time when the government is trying to cut red tape to boost the UK economy and is sure to be criticized by business leaders. The UK department for Business, Innovation and Skills has analysed the new laws and predicted the cost to firms could be approximately £1.8 billion a year which could lead to an increase in job cuts. It is however likely that if the government had not implemented the EU directive they would have faced a legal challenge from agency workers.