Temporary worker news – Employment law reform to cause mass job cuts
The Apsco (Association of Professional Staffing Companies) survey of 42 recruitment agencies found that as a result of the new EU Agency Worker Directive 29 per cent are intending to terminate short-term contracts before the 12-week trial period is up and they are forced to increase pay and rights to equal that of permanent staff.
The new rules for temporary staff came into force in October 2011 after having been initially proposed by the previous Labour government. After the election the plans were reassessed by the Department for Business, Innovation and Skills (BIS) and a decision was made to implement the new rules.
Analysis of the employment law reform by the BIS has revealed that it is likely to cost firms more than £1.8 billion annually and, taking the current economic climate into consideration, has led to fears that it will force employers to reduce employee numbers.
With the first twelve-week period soon to be up, it is expected that job losses will be felt later on this month.
Apsco chief executive Ann Swain said, “At a time when unemployment among young people has surpassed one million, any barrier to securing work has to be questioned.”
Swain expects “tens of thousands” of workers to be adversely affected by the new directive.
If you feel you have been treated unfairly at work or your employment law rights have been breached contact an employment solicitor today at George Ide. To find out more click here.News