IIM response to BIS consultation on implementation of the Agency Workers Directive (Round 1)

30 June 2009

In May BIS (formerly BERR) published a consultation paper seeking views on a wide range of matters of principle as to how it should implement the EU’s Agency Workers Directive. This consultation exercise is intended to inform the preparation of draft Regulations, which will themselves be the subject of a consultation later this year.

The aim of the Directive is to give temporary workers placed on assignment with clients through agencies at least the same working conditions and pay as the client’s permanent staff. Various derogations are allowed to EU Member States in the way they implement the proposals – for example, allowing assignments below an agreed length (interpreted in the UK to be less than 12 weeks) to be outside the scope.

The BIS consultation paper examines in detail the definition of temporary worker (which, if defined too broadly, could embrace Interim managers), what are meant by working conditions and pay, and how equivalence with permanent staff is to be determined.

It is fair to say that the BIS proposals go significantly beyond the requirements of the Directive, representing a substantial ‘gold-plating’ of its provisions – a fact confirmed by the Armindo Silva, head of the EU Commission’s employment, social affairs and equal opportunities unit, in a letter to the Institute of Directors (reported in the FT on 23 July). This gold-plating will place an unnecessary burden on a significant section of UK plc, and in particular, on SMEs.

EU Member States are required to implement the Directive by 5 December 2011 at the latest (in accordance with UK practice on employment legislation, this means by October 2011 for the UK). However, the Government appears to be pushing ahead as fast as possible, with a view to introducing the Regulations at the earliest opportunity – no doubt with the date of the next election in mind.

The IIM’s response to the consultation paper is available to download from the link below.

Associated File: IIM Response to BIS Consultation on AWD.pdf