Recruitment businesses need to prepare for the new regulations, says Stuart Talbot
"The government recently announced its draft guidelines on the Agency Workers Directive (AWD), yet many recruitment businesses remain ill prepared for the legislation’s implementation, due on 1st October 2011.
It is important that recruitment businesses are prepared for the new regulations and are aware that they include a complex set of anti-avoidance provisions designed to make it difficult for hirers to circumvent the qualifying period.
Policing of the new regulations will initially be via a grievance process, with the possibility of tribunal action being the ultimate arbiter.
In respect of anti-avoidance measures or non compliance with the “12 week rule” a fine of up to £5,000 per temporary worker could be imposed. The tribunal will also have the power to make an order for “just and equitable” compensation to be awarded.
This is a very real, and potentially very costly, process for the vast majority of recruitment businesses operating in the UK. For instance, the increased costs of compliance might be absorbed by end users (particularly in highly unionised industries where the threat of industrial action is significant).
During the coming months there will be a number of events taking place to highlight the contents of the Directive, but rather than just relying on attending one or two of these, I personally would want to take independent advice specific to my own circumstances, as no two businesses are identical. As someone commented to me, there seem to be many businesses wanting to take a Paracetamol tablet when they should be undergoing brain surgery!"