The overall regulatory outlook for the staffing industry for the next six month period is negative in 13 surveyed countries, according to the latest Staffing Executive Regulatory Outlook by the World Employment Confederation.

The Outlook is a bi-annual poll of top executives of National Staffing Federations around the world, where they assess the likelihood and potential impact of regulatory changes.

In the Americas, negative regulatory changes are expected in Mexico. Following the Mexican labour reform implemented in September 2021, agency work is no longer allowed in Mexico. As a consequence, the volume of business decreased 80% compared to the situation prior to the reform. Agency work can nevertheless continue operating in the so called “specialised services”, which are outside the core activity of the user company.

In Europe, the expected negative regulatory changes include:

• A new regulation on maximum length of assignment in Sweden

• A new regulation on statutory sick pay and pensions in Ireland
• Discussions and possible regulation on the overall protection of agency workers covered by collective labour agreements in Germany, linked to the EU Court of Justice proceeding
• Discussions on the use of agency work in the healthcare sector in both Denmark and France, and
• A new law entering into force in Norway on maximum length of assignment and a regional ban in the construction sector

In 4 of the 24 surveyed countries, the staffing industry anticipates regulatory changes, which will have an overall strong and positive impact on the sector:

• In the Netherlands, a reform of the complementary pension scheme for agency workers based on a collective labour agreement is about to enter into force, which is assessed positively.
• In Spain, social dialogue is driving new opportunities such as stronger involvement of the sector in labour market policies.
• In the UK, the positive outlook is based on the fact that the new British Prime minister is taking a more cautious and slower approach after Brexit in revoking UK laws that were based on EU Directives.
• In Italy, the newly elected government has put forward a promising programme, which might lead to making positive changes to the most recent reform (Dignity Decree).

The WEC also noted that in seven countries, the impact of changes in regulation is expected to be neutral overall.