The introduction of the Agency Workers Regulations on the 1st October 2011 has been well publicised and lauded as a great step forward for agency workers. But is it? Undoubtedly if the legislation succeeds in stopping the exploitation of agency workers it will be a brilliant piece of legislation and the bureaucrats will quite rightly be able to say we told you so!
However, I have two really big concerns with the legislation.
My first concern is the very companies who previously exploited agency workers, some of which, I believe will simply not accept a massive hike in their charges. This could encourage them to circumvent the legislation by using agencies that are happy to circumvent the legislation too. In turn this could lead to the nightmare scenario of an unscrupulous client and unscrupulous agency working in tandem – what hope does that give a temporary worker???
Whilst being underpaid, (as they may have been before 1st October), is by no means justifiable, the alternative has the potential to be even more oppressive. I’m just hopeful that this type of practice will not flourish in a City like Milton Keynes which in my experience is a modern, fast moving and above all, honourable place to do business.
My second major concern isn’t quite as depressing but it certainly gives food for thought. Many companies in Milton Keynes are still finding trading tough. Some may read this and say that’s an understatement?! So imagine this scenario – and it’s going to happen.
John has been working at a company up until the 1st of October and earning £9per hour. The rate works for John, he believes it’s a fair rate, and whilst he’d love more money he’s perfectly content. This is a pretty accurate position of nearly all of the temporaries currently working for Ascendant Recruitment.
However, the comparable rate for the work John is doing is £10.00 per hour, so 12 weeks from the 1st of October John’s employer will need to raise his salary by £1 per hour, pay an increased employer national insurance contribution, and raise his holiday entitlement. After a lot of deliberation John’s employer regrettably explains to him that he can no longer afford him. John is more than happy to continue to work at £9 per hour, he enjoys his work and hoped he may ultimately gain a permanent role at the company, but it’s reiterated that continuing to work in that role at £9 per hour simply isn’t possible.
In short, through no fault of his own John finds himself unemployed, unable to stay in the job he loved because the bureaucrats have decided he must be given a pay rise he didn’t want!!!!!!!!! He’d much rather have kept his role at £9 per hour with the potential of ultimately gaining a permanent role. Now he has to start again.
Ascendant Recruitment has always paid its temporary workers the very best rates they can afford; this fact combined with the high quality of companies we support means the impact of AWR has been minimal, because a massive proportion of our temporaries are already (without bureaucratic intervention) being paid comparable permanent salaries. That said I’m very concerned about the two scenarios above especially if we remain in the current economic gloom for much longer.
