With the new Agency Workers Directive (AWD) being rushed into implementation has anyone stopped to think how it will actually affect the agencies?Once the directive is implemented agency workers who have completed the derogation period at an employer will be entitled to receive the same pay, terms and conditions and benefits as a comparable worker who is a permanent employee. The UK Government agreed that this derogation period should be 12 weeks. The Recruitment and Employment Confederation (REC) estimates that between 50% and 60% of temporary agency assignments last fewer than 12 weeks, therefore the new legislation will only apply to the minority of agency workers and it is likely that the introduction of this legislation will reduce the number of long term contracts available in the future.

The worry that remains for agencies is the speed at which the Government is trying to railroad this legislation onto the statute books. The EC has stated that they have until December 2011, however BIS and the Government maintain that they want to see the AWD become law in the next session of parliament, which could mean the new rules will take effect from as early as April 2010. All the other member states and the EC have been very relaxed over implementation timings because they want to see who goes first and to learn from their mistakes. The UK Government has been unable to give a convincing reason for wanting to rush the implementation of this highly complex legislation.

The danger of this haste is that the UK is likely to face another botched and chaotic introduction of key legislation, much like we saw with IR35.

The draft legislation is likely to be published for a second-stage consultation in September or October 2009.