In the ever-evolving landscape of the modern workforce, small businesses frequently turn to temporary workers to navigate periods of fluctuation and growth without the added strain of long-term employment commitments. Temporary positions, including agency workers and apprenticeships, offer a flexible solution but come with a distinct set of rights and protections under employment law. This blog post delves into the employment regulations that safeguard these workers and offers guidance to employers on compliance.
Agency Workers: Rights and Regulations
Agency workers are hired on a short-term basis, often for specific projects or seasonal work. While the employment agency acts as the employer on paper, the host company where the agency worker is placed must ensure they receive equal treatment to permanent employees after a 12-week qualification period. This includes access to the same on-site facilities and working conditions.
For businesses, it’s crucial to understand the implications of the 12-week rule. Using agency workers beyond this period without offering equal treatment can lead to compliance issues. It’s advisable to limit agency worker engagements to 12 weeks, or alternatively, consider overtime for existing staff or hiring self-employed contractors. Notably, the 12-week count resets if the worker starts a new, significantly different assignment, begins work with a different client, or has a break of at least six weeks between assignments.
- Paid holidays
- Parental and maternity leave (subject to conditions)
- Statutory Sick Pay (SSP)
- National Minimum Wage, National Living Wage, or Apprentice Rate
- Protection from discrimination (Equality Act 2010)
- Protection against unlawful wage deductions
- Access to shared workplace facilities
- A safe working environment
Apprenticeships: A Pathway to Skilled Labour
Apprenticeships serve as a valuable form of on-the-job training, allowing individuals aged 16-24 to earn a nationally recognised certificate in a specific trade or skill. An apprenticeship contract focuses primarily on training rather than merely providing service, setting it apart from other employment contracts.
Under the Apprenticeship, Skills, Children, and Learning Act of 2009, the more commonly used apprenticeship agreement specifies the trade or skill being learnt and usually lasts for a fixed term. This framework provides some flexibility regarding termination, particularly in cases of misconduct by the apprentice.
Benefits and Entitlements for Temporary Workers
Regardless of their status as employees, workers, or self-employed. If the temporary workers have been engaging directly with the contractor throughout the years, then they are entitled to the following benefits:
- Paid holidays
- Parental and maternity leave (subject to conditions)
- Statutory Sick Pay (SSP)
- National Minimum Wage, National Living Wage, or Apprentice Rate
- Protection from discrimination (Equality Act 2010)
- Protection against unlawful wage deductions
- Access to shared workplace facilities
- A safe working environment
If the contractor decides to hire an outsourced payroll company to deal with the subcontractors, then the subcontractors wouldn’t be entitled to these benefits anymore:
- Paid holidays
- Parental and maternity leave (subject to conditions)
- Statutory Sick Pay (SSP)
Holiday Pay and Pension Rights
Agency workers are entitled to holiday pay, though calculating entitlement for those with irregular schedules can be complex. Following a Supreme Court ruling, the 5.6 weeks annual leave entitlement cannot be reduced pro rata for part-year workers, introducing uncertainty for employers on how to accurately calculate leave.
Regarding pensions, staff aged between 22 and State Pension Age earning over £192 a week must be enrolled in a pension scheme, to which employers must contribute.
TUPE and Additional Rights
The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) typically protects full-time or fixed-term contract workers, leaving agency workers in a grey area. However, workers who spend 50% or more of their time in a transferring business may automatically transfer to the new employer, though this is not a strict rule.
Agency workers are also entitled to sick pay under certain conditions and can join a union without facing discrimination from employers. Union membership also allows them to be accompanied at disciplinary or grievance hearings by a representative or colleague.
Conclusion
While temporary work arrangements offer flexibility for both businesses and workers, they come with a set of legal obligations and protections that employers must understand and adhere to. From equal treatment of agency workers to the specific rights of apprentices, understanding these regulations is crucial for maintaining compliance and fostering a fair, productive working environment.
For businesses navigating the complexities of employment law for temporary workers, consulting with employment law solicitors can provide clarity and ensure that all legal obligations are met, protecting both the business and its temporary workforce.