In 25 days a new piece of legislation will come into force that will impact all organisations that use agency workers. This is the single biggest piece of legislation to hit the temporary labour market and the businesses that use it.

The new Agency Workers Regulations (AWR) comes from a piece of European legislation designed to give temporary agency workers parity in pay and employment conditions as if they had been recruited by the hiring company directly.

David Frost, the director-general of the British Chambers of Commerce, said: “The Government claims business growth is top of the agenda, yet UK firms will be hit with huge costs once these new regulations come into force.”

This legislation will entitle the majority of agency workers to the same treatment and pay as their directly employed equivalents, after a qualifying period. The hiring company as well as the agency will be responsible for ensuring equal treatment.

In summary the AWR establishes the right to equal treatment for agency workers after 12 weeks with same company. The equal treatment covers pay, holiday, breaks and the same basic working conditions.

“Companies cannot generate growth and create jobs when they are facing such a costly bill just to implement new employment legislation,” stated David Frost.

An analysis of the new laws by the Department for Business, Innovation and Skills (BIS) discloses that it will cost firms more than £1.8 billion a year, leading to warnings from major employers that they will have to cut jobs.

We spoke to Mark Taylor, sales director of Interaction Recruitment, who said: “As one of the UK’s fastest growing independent recruitment businesses, operating through our 30 locations nationwide this legislation is the biggest thing to ever hit the labour market.

We deliver more than 4,000 temporary workers to client sites every day and know that in order to keep our clients out of court we must hit this new piece of legislation head on.

“Working with a good credible Agency provider is critical in order to prepare your organisation in time for October 1st.

“What is already clear is that the financial implications, legal liabilities and operational changes imposed by the regulations will lead to labour users and labour providers to fundamentally review how they use temporary labour.

“What is also clear is that there is no easy option to meeting the requirements. A number of agencies are trying to find ways to avoid this legislation. This legislation is coming and will be upheld by the courts. There is no way to escape its impact.

“This legislation is coming and will affect everyone who uses temporary labour!

“At Interaction we are working with our clients to ensure they are compliant. We even have a dedicated email address for enquiries awrinfo@interactionrecruitment.co.uk.”

A spokesman for BIS conceded that the new employment laws were “disappointing”. He said: “Ministers discussed these European regulations on a number of occasions with both the CBI lobby group and the TUC union, seeking agreement on changes that we considered, would have been to the benefit of both employers and agency workers.

Unfortunately it was not possible to find a way forward that would be acceptable to both parties.”

Jaimie Butel-Foley and Mark Taylor are with Interaction Recruitment