Umbrella contractors may be interested to learn that Flex Plus recruitment consultancy has warned that the Agency Workers Regulations could drive up supply chain costs.
Adrian Hobbs, the MD of Flex Plus, said the implementation of AWR in October could lead to an increase in the cost of agency labour at a time when UK companies need less employment regulations and more flexibility.
He went on to say that complying with the regulations could have a tremendous impact on the bottom line of organisations that use a lot of temporary workers. The risks associated with non-compliance are high, especially if recruiters misinterpret the AWR or come up with a cheapskate solution without considering the long term impact.
Hobbs believes there is potential for the logistics sector to redesign the way it works with flexible labour and refocus on managed services, outsourcing, productivity and warehouse labour within functional areas.
Furthermore, he suggested that the days of cheap agency labour are numbered and in its place we will see a productive flexible labour force with permanent contracts and professional employment organisations taking over from traditional agencies.
Meanwhile, amendments made to the AWR regulations last week may lead to recruiters and employers having to take another look at contracts and other documents they have already drafted, warns Bridget Wood from Blake Lapthorn.
The head of the recruitment sector group at the law firm explained that the government has now published amended regulations that correct errors in the original drafting.
Amongst the notable corrections are the definition of agency workers, the stipulations concerning pay between assignments and the conditions that govern liability in the case of a breach of equal treatment.
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Image: Take these chains… by Steve-h
