Last week, the REC responded to the inquiry into workplace pension automatic enrolment, highlighting the challenges the reforms will pose for recruitment agencies that place temporary workers.
Recruiters will be classed as employers under the new pensions legislation, even though they play a very different role in the labour market. The REC has reinforced the fact that the recruitment sector plays a unique role in providing employers with skilled temporary labour, but this will make it very complicated for recruiters to comply with the new rules.
The head of public policy at the REC, Gillian Econopouly, said the 12 week qualifying period will go some way towards helping recruiters cope but there are still other areas of concern. She highlighted the fact that the administrative burden of regular auto-enrolling and un-enrolling temporary workers will detract agencies from their core business which is to help employers find the talent they require.
She went on to say that the Confederation will continue to provide input to the government and the regulator of the scheme and confirmed that the REC will provide practical support to all of its members to ensure they can implement the required changes.
The REC will be holding another Pensions Workshop in the late autumn and it will keep its members informed on the findings of the current inquiry.
Meanwhile, the Pensions Advisory Service is starting to receive more enquiries about auto-enrolment as the date for implementation draws closer. Employees and employers alike have already begun contacting TPAS to discover more about their obligations once the legislation comes into force next year.
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