Employers should be aware that amending legislation will come into force on 27 October 2008 that will bring the statutory sick pay ("SSP") entitlement of short-term agency workers in line with that of all other employees in the UK.
In response to a recent decision of the Court of Appeal, the Department for Work and Pensions (the "DWP") has amended the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 to ensure that not just fixed-term employees but also agency workers on short term engagements of three months or less will be eligible for SSP (provided they satisfy the usual SSP eligibility requirements). The DWP anticipate that the amending legislation will benefit up to 63,000 agency workers.
The new measure is likely to be as unpopular with employment agencies as it is with their clients as increased agency costs will be need to be passed on.
Further rights in the pipeline…
In addition it has been agreed in relation to the proposed Temporary Agency Workers Directive that temporary agency workers should receive the same treatment as permanent workers from day one in terms of pay and maternity leave, unless it has been agreed collectively or at a national level to derogate from this. Temporary agency workers should also be informed about permanent employment opportunities and there should be equal access to collective facilities (e.g. childcare facilities). Any non-compliance by temporary agencies and end users is anticipated to result in penalties. We shall watch this space with interest to see how these proposals are integrated into national law.
Dyne Solicitors Limited - 01829 773100, info@dynesolicitors.co.uk
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