Economy, THE GRAPEVINE! news, comment & a bit of gossip

– Getting around New Agency Worker Regulations

New Agency Worker Regulations from Saturday

Recruitment agencies looking to escape the costly impact of the new agency worker rules, which come into effect on October 1, may be seeking to exploit a legal loophole allowing them to get around the law.

Some recruiters will hire their agency workers directly by converting temps into permanent workers.

Under the rules, any recruiter employing the temp as a permanent worker can legitimately avoid the Agency Worker Regulations – known as the Swedish derogation model – and so avoid giving them new rights.

From Saturday, temps will be entitled to the same pay and benefits as permanent employees after just 12 weeks in a job. The law is expected to cost businesses some £1.8bn a year.

See the full Guidance document

Amanda Frewin

Research & Project Support

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