Contrary to expectations, the introduction of the Agency Worker Regulations has not had a negative impact on demand for temps, although it has given rise to new payment models in the industrial and driving sectors.
These are the key findings of research undertaken by the Recruitment & Employment Confederation to commemorate the six month anniversary of the legislation, which was introduced on 1 October 2011.
According to data from REC’s Report on Jobs, which is jointly produced with management consultancy, KPMG, the demand for temporary workers has remained steady and the outlook remains positive into the short- and longer-term future.
REC’s JobOutlook report of employers’ future hiring intentions revealed that 31% plan to grow their temporary workforce over the next three months compared with 53% that intend to keep it at current levels and only 15% that aim to cut it.
Over the next 12 months, meanwhile, some 26% said that they would use more temps, while 63% indicated that numbers would remain the same. Only 11% anticipated a drop.
Tom Hadley, REC’s director of policy and professional services, said: “Looking ahead, the benefits that flexible staffing arrangements provide will continue to outweigh the additional administration and uncertainty that has been created in some sectors.”
The biggest impact of the regulations had been seen in specific areas such as industrial and driving, where new models such as ‘pay between assignments’ contracts based on the Swedish derogation had been introduced.
Specific issues had also arisen in the education sector due to its long holiday periods and issues surrounding teacher pay bands.
But there had been very few early signs that workers were resorting to employment tribunals for alleged breaches of the new requirements for equal treatment with permanent staff, Hadley added.
