Legal News
New EU Law May Result In One-Third of Employers Sacking Temporary Staff (13 January 2012)
Date: 13/01/2012
One-third of employers are considering sacking temporary staff members due to the introduction of new EU rules, a survey has revealed. Research has suggested that many temporary workers will see their employment terminated before the completion of their 12-week trial period. The initial round of sackings is likely to hit temporary employees this month following the new rules being introduced in October. Under the EU Agency Worker directive, employers would be required to provide temporary staff members who have worked at a company for a total of 12 weeks with the same rights and wages as permanent staff. The survey, conducted by the Association of Professional Staffing Companies (Apsco) quizzed 42 recruitment agencies on their intentions following the introduction of the EU Agency Worker directive. Their results revealed that 29 per cent of those surveyed intended to end short-term contracts prior to the completion of the trial period.
Ann Swain, Apsco’s chief executive, claimed that “tens of thousands” of temporary staff would be affected by the new laws. She added that, with levels of unemployment amongst the young increasing, barriers to securing employment must be questioned. Phil Hutchinson, g2 recruitment’s operations manager, said that many clients had already started to terminate their workers’ contracts.
During their analysis of the EU Agency Worker directive, the Department for Business, Innovation and Skills (BIS) found that the new laws would cost businesses in excess of £1.8 billion per annum. A typical small firm would have to pay out an additional £2,493 per annum, increasing to £73,188 for large firms.
Duncan Lewis’ employment law solicitors can provide temporary workers with legal support during employment law disputes.