Temporary Agency Workers – not so cost effective after all

Employing temporary agency workers has always been seen as an alternative to permanent employees in the IT sector. Companies can expand and contract as the work load dictates, with the slack taken up by contractors, now referred to as Temporary Agency Workers. Often, the employer sees agency fees as being high, without value and sometimes wholly unacceptable.

Employers often feel that a contractor takes a period of time to come ‘up to speed’ and having eventually grasped the fundamentals of the project and the company ethos, then leaves to pursue another project. Regardless of how ‘up to speed’ the individual may be, this perception by employers reflects negatively in the terms and conditions for temporary agency workers, which may be inferior to that of permanent staff.

Now the new European Temporary Agency Workers Directive, which was aired by Parliament in January 2010, is being reviewed before coming into effect on 5th December 2011. This new piece of legislation is being implemented to protect the rights of such workers. Being criticised for being complicated, it is seen as being vague and ambiguous. However, it is here to stay, so it is imperative the directive is totally understood and adhered to.

How will this new piece of legislation affect the employer and the employee alike? The main point is that after 12 weeks on an assignment, agency workers will be given equal treatment and conditions of employment as permanent employees.

That means the benefits package (pay, pension, holidays and health insurance) received by an agency worker will have to be on a par with that of a permanently employed member of staff. And then the Temporary Agency Worker leaves for the next project, never to be seen again.

Is there another way? We at Stage like to think so. Look out for the next blog.