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Impact of the Agency Workers Regulations

The CBI has set out its analysis of the impact of the Agency Workers Regulations (AWRs) a year after they came into force, and its priorities for the upcoming Government review of the regulations.

Neil Carberry, CBI Director of Employment & Skills, said:

“Agency jobs are a crucial way into employment both for people looking for flexible work, and for those seeking experience and a way into the workforce.

“But one year on from the introduction of the regulations, the business verdict is that they are a drag on job creation in this vital sector.

“The regulations are thought to have cost businesses more than £1.5 billion in their first year, but temps have not reaped the rewards – instead, the vast majority of this cost has paid for paper-pushing to ensure compliance. This has in turn led to a reduction in temps hired in eight out of nine months in 2012, despite a rise in permanent staff being hired.”

The CBI has identified several key areas where the government should focus its efforts to simplify the regulation, including:

  • Streamlining the highly complex definition of pay to allow for easier comparison.
  • Simplifying the 12-week qualification period so that those on short-term assignments aren’t needlessly caught up in the regulations.
  • Removing gold-plating where the regulations specifically go beyond that required by the directive and UK implementation agreement.
  • Stripping out the perverse incentive in the regulations to lodge opportunistic tribunal claims.

 

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