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 CIPD PRESS RELEASE 20 February 2008
Study shows employers willing to support right
compromise on agency workers rights
With a Parliamentary private members bill seeking
to give agency workers the same employment rights
as permanent employees due for its second reading
tomorrow (Friday), and possible agreement on the
stalled EU Temporary Agency Workers Directive on
the horizon, the Chartered Institute of Personnel
and Development (CIPD) today publishes the findings
of a CIPD/KPMG survey of employer opinion on
increased rights for agency workers and the
likely impact of the proposed EU Directive.
The survey of more than 1500 employers - conducted
as part of the quarterly CIPD/KPMG Labour Market
Outlook, which monitors the state of the UK jobs
market - finds employers divided on the principle
of equal rights for temporary agency workers and
how long agency workers should have to work for
an employer before qualifying for the same rights
as workers on permanent contracts.
More than 1 in 4 employers (27%) responding to the
survey are of the opinion that agency workers should
never qualify for the same rights as permanent employees.
But 1 in 5 (21%) think that agency workers should
be given the same 'pay and contract of employment'
conditions from the first day of employment with a
given employer. In all 1 in 3 (35%) think this should
apply within the first six months of employment.
while a further third prefer a qualifying period
of at least six months.
However, the survey findings also suggest that
increased rights for agency workers could mean
fewer jobs in the economy overall and block an
important pathway into work for many jobless people.
Almost half (47%) of responding employers think
the Agency Workers Directive would make the
process of hiring agency temps more bureaucratic
while 61% think it will increase labour costs.
Well over a third of employers (37%) think the
Directive would have a negative impact on their
organisation with 2 in 5 (39%) saying it would
have an effect on recruitment. Of the latter more
than two thirds report that they would hire fewer
agency temps though one third expect that as a
consequence they would hire more workers on
permanent contracts. Overall 29% of responding
employers think that increased employment rights
for agency workers would make it less likely that
agency temps would be hired as a means of selecting
recruits for permanent positions.
In light of the survey findings the CIPD contends
that public policy debate on increased rights for
agency workers should focus on the practicalities
- especially the matter of the most appropriate
qualifying period - rather than the principle at
issue. In this respect the survey lends weight
to the Government's cautious stance toward both
the Parliamentary private members bill and the
proposed EU Directive and endorses the plan to
establish an independent commission to examine
the practicalities and potential economic risks.
Mike Emmott, Employee Relations Adviser at the
CIPD, comments:
"If agency workers are to be given the same
rights as permanent employees it is crucial
that we get the detail right. Our latest survey
findings suggest that a qualifying period of at
least six months is necessary to command the
support of employers. However, with over a third
of employers believing the agency workers directive
will have a negative impact, the proposed
independent commission will need to work hard
to consider the risks associated with this policy
if it is to allay employer concerns."
Commenting on the potential economic impact of
increasing rights for agency workers as identified
by the survey the CIPD's Chief Economist John
Philpott said:
"With three quarters of organisations reporting
that they make use of agency staff, increasing
the rights of these workers is likely to have
a significant impact on labour costs and recruitment
practice. The survey findings suggest an overall
negative effect on jobs in the UK with fewer
jobs for agency workers only partly offset by
more workers being hired on permanent contracts.
"Though people who continue to find employment
as agency workers would be better off, the
policy would make it somewhat more difficult
for jobless people to take the agency route
into the workplace. By comparison with the jobs
effect the likely impact on workplace flexibility
and productivity would appear to be less
significant since employers would still have
the option of hiring agency staff albeit at
higher cost. A key task for an independent
commission will be to examine how sensitive are
these potential impacts to different qualifying
periods."
Rachel Campbell, Head of People Management at KPMG, said:
"Where agency workers are concerned, there is
clearly a need to focus on what sensible measures
can be taken to ensure unscrupulous employment
practices are prohibited. However, the survey
indicates the extent of concern felt by many
employers at the prospects of further legislation.
Greater detail about the proposals will be needed
to mitigate these concerns and to ensure that any
measures do not increase bureaucracy and still
maintain the benefits and flexibility that agency
workers give our economy."
Notes to Editors
* Details of the survey report is available to
journalists on request from mailto:press@cipd.co.uk
or by calling 020 8612 6400.
* The report is based on a quarterly survey of
around 1553 employers. When weighted the survey
sample is representative of employers of all sizes,
of all sectors, and of all regions and nations of
the UK.
* The CIPD website address is http://www.cipd.co.uk
If you are a member of the press and wish to view
other CIPD information, please visit
http://www.cipd.co.uk, call 020 8612 6400, or email
mailto:press@cipd.co.uk
* The Chartered Institute of Personnel and
Development (CIPD) has over 130,000 members
and is the leading professional institute for
those involved in the management and development
of people.
CIPD press enquiries:
Hannah Smith / Meera Vohora/ Anna Wallace
CIPD Press Office
151 The Broadway, London SW19 1JQ Tel: 020 8612 6400
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