CIPD: Agency Worker Directive 'Bad for British Jobs'

The CIPD has criticised a draft EU directive which seeks to give agency workers on temporary contracts the same rights as their permanent counterparts.

The Institute has sent its comments to Ms Leke van den Burg MEP, who is preparing a report to the European Parliament on the draft EU Directive on agency workers. The comments refer to independent evidence which shows that the proposals to change the terms and conditions for temporary workers will be bad for British businesses, limiting their ability to respond to changes in market demand.

Mike Emmott, CIPD adviser on Employee Relations summed up the principle of the draft directive, which will require employers to ensure that the contract of each individual agency worker contains terms and conditions that are at least as good as those enjoyed by employees doing similar work for the same employer on a permanent basis. Emmott considers this will be an "enormously bureaucratic operation" which is "bound to cut the number of jobs available to temporary workers".

“A further problem is likely to be an increase in the number of employment tribunal cases required to deal with claims where the directive is not being properly applied. This could reduce the attractiveness to employers of taking on agency workers.

“Agency working can be beneficial for both employers and workers. For organisations it means retaining a margin of flexibility to deal with changes in demand; only in a small minority of cases is the main aim to save money.

“For workers it means the freedom to decide when, where and for whom they work. In addition they may be able to secure higher pay, in return for less security and access to employee benefits.”

Emmott believes that it is unlikely that any reduction in the numbers of temporary workers would be balanced by increases in the number of permanent employees. It is more likely that the directive will have a negative impact on the terms and conditions of permanent staff; some may also be required to work longer. In effect, employers would be looking to create a new “margin” of permanent staff with less generous benefits than existing staff. The directive might also mean that mainstream employers will meet peaks and troughs in demand by outsourcing more jobs, not necessarily in Europe.

Emmott concludes, “The draft directive seems inconsistent with the labour flexibility model which European governments are keen to promote to support higher levels of employment and economic growth”.

The CIPD is seeking an amendment to the draft directive to exclude agency workers who have been working with the same employer for less than 12 months.

The Workplacelaw Network has reported on the draft directive and its implications for employers since its announcement in February 2002.
This document is for general guidance and research purposes only, and does not purport to give professional advice. Please check the date at the top of the article; the Workplace Law Network retains historic articles for general research.