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U.K. temp equality rule goes to Parliament

January 26, 2010

A proposed regulation in the United Kingdom to give temporary workers from employment agencies rights equal to traditionally hired workers was presented to Parliament last week.

Known as the "Agency Workers Directive" it will require equal pay, holidays and working conditions for temporary workers after 12 months on a job. It's proposed to go into effect late next year.

The legislation is based on a European Union requirement approved in 2008.

"This change in the law is aimed at ensuring fairness for agency workers in relation to the permanent employees they work alongside," said Business Minister Pat McFadden.

Violations of the new rules could result in staffing firms being required to pay GBP5,000 (US$8,053) to a worker.

"Professional recruiters will bare the brunt of making these complex regulations work on the ground and we are pleased that some of the recruitment industry's key concerns have been taken on board," said Kevin Green, chief executive of the Recruitment and Employment Confederation, a staffing industry trade group in the U.K. "However, there are real concerns that these EU regulations are ill-adapted to the U.K. labor market and could limit job opportunities at a time when flexible working options are providing a crucial route to employment. The priority now is to ensure that effective guidance is developed for employers and recruitment agencies."

Among employers, 85% have heard of the directive, up from less than 50% a year-and-a-half ago, according to the REC.