Policy News Journal - 2013-14

Finally, the time period for applying for retrospective remissions is being reduced from six months to three months.

The changes are expected to take place, by statutory instrument, some time in October 2013.

Agency workers still not receiving equal pay according to TUC research

5 September 2013

The TUC believes it has evidence that the UK government has failed to provide adequate protection for agency workers and that the right to equal pay is being widely flouted.

The TUC has lodged a formal complaint with the European Commission against the UK government for failing to implement the Temporary Agency Workers Directive properly, leading to tens of thousands of agency workers being paid less than permanent staff despite doing the same job. The complaint says that the UK government's flawed implementation of the EU Directive has allowed the abuse of the so-called 'Swedish derogation' - where employment agencies routinely pay agency workers far less than permanent staff doing the same job. The TUC has gathered evidence from workplaces where agency staff are paid up to £135 a week less than permanent staff, despite working in the same place and doing the same job. Under the UK's regulations, agency workers are entitled to the same pay and conditions as permanent staff doing the same job after 12 weeks. However, a Swedish derogation contract exempts the agency from having to pay the worker the same rate of pay, as long as the agency directly employs individuals and guarantees to pay them for at least four weeks during the times they can't find them work. In Sweden, where these contracts originate, workers still receive equal pay once in post and 90 per cent of normal pay between assignments. However in the UK workers have no equal pay rights and are paid half as much as they received in their last assignment, or minimum wage rates, between assignments. Agencies can also cut their hours, so receive as little as one hour of paid work a week. Evidence gathered by the TUC shows that Swedish derogation contracts are used regularly in call centres, food production, logistics firms (lorry drivers working out of retail warehouses), and parts of manufacturing. The Temporary Agency Workers Directive was implemented in the UK in 2011 as part of Europe-wide legislation to give equal treatment to agency workers. At the time, business lobby groups warned that the legislation would lead to heavy job losses. But as with the minimum wage, their predictions proved to be completely wrong, and the number of agency workers has increased despite the recession. Agency working in the UK has increased by 15 per cent since the recession, faster than any other form of employment. The Directive said that countries must prevent the misuse of Swedish derogation contracts. The TUC believes it has evidence that the UK government has failed to provide adequate protection for agency workers and that the right to equal pay is being widely flouted. Swedish derogation contracts should therefore be banned, says the TUC. The number of workers on Swedish derogation contracts has grown rapidly since 2011. Around one in six agency workers are now on these contracts, according to a report from the Recruitment and Employment Confederation (REC).

CIPP Policy News Journal

16/04/2014, Page 85 of 519

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