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Firms Fear Costs Increase As Agency Workers Win Rights

Posted on: 09/07/2009

BUSINESS leaders from South Yorkshire are to add their voices to nationwide concerns over new European legislation that will govern the use of agency workers.

BUSINESS leaders from South Yorkshire are to add their voices to nationwide concerns over new European legislation that will govern the use of agency workers.
Members of Sheffield, Doncaster, Barnsley and Rotherham chambers of commerce believe the new Agency Workers Directive will increase costs for employers.

The directive, which is currently the subject of a consultation being run by the Government, aims to give agency workers the same rights as permanent employees in the workplace.

It is due to be introduced in Britain next year, but is currently opposed by the British Chambers of Commerce, an umbrella organisation which covers the country's top business people.

Sheffield Chamber's policy and representation manager Helen Rana said members from across South Yorkshire had held special meetings to help formulate a response to Government.

She added: It is likely to increase costs because it will be more expensive to hire agency workers and this factor alone may result in some companies taking fewer of them.

In terms of cost to businesses, this will be the third most expensive piece of regulation introduced by the Government after the Working Time Directive and the asbestos regulations.

It is vital that we present the strongest possible case to the Government and I would urge member businesses to contact us if they want to be involved in further consultation.

Those involved in the South Yorkshire discussions so far represent a variety of sectors, including IT, manufacturing and professional services which often rely on agency workers because of fluctuating demand.

It is thought that many managers will avoid employing agency workers if the directive is introduced because of the increased costs involved, and it is feared that this will have an effect on unemployment figures.


Mrs Rana said that members of all four chambers had agreed that the biggest issues surrounding the directive were those surrounding equal pay and conditions and problems in finding a member of permanent staff comparable with a temporary worker.

Other difficulties include legislation on pensions for agency workers, which will be required as of 2012 and access to childcare vouchers issued by employers.