21 December 2011 #Employment
According to an article in the Telegraph today, a growing number of employers are dismissing temporary workers this week to escape the effects of the Agency Worker Regulations, which came into effect on 1 October 2011.
The Regulations state that temporary workers must be given the same salary and benefits as permanent staff after they have worked for the company for 12 weeks. This means that temps employed from 1 October 2011 will be reaching the 12 week milestone this week prompting employers to start terminating their engagements, according to the recruitment agencies.
It has been estimated by the Government that the Regulations will cost businesses an extra £1.8m a year ,as temporary workers on average earn about 10% less per hour than their permanent counterparts.
Russell Thompson, managing director of LMA Recruitment said this week: "It is notoriously quiet this time of year and clients have ended or are about to end temporary workers assignments and redistribute the work amongst their permanent staff. Many of my clients have expressed that they will no longer use long-term temps as they are becoming increasingly expensive...The regulations have damaged an established British temporary market and we will find that there will be a greater number of people out of work."