The Recruitment and Employment Confederation has issued a call to contract recruitment agencies, umbrella companies, and the clients they do business with to exercise caution when developing alternative worker policies.
The new recommendations come at a time when the REC says recruiters are increasingly being asked to develop alternative models as the new agency workers regulations loom on the horizon.
The newest trend as identified by the REC has been in the area of “Swedish Derogation,” which has agencies classifying their contracted employees as temporary workers, which affords them higher job security and an expanded set of employment rights.
However, Lorraine Laryea, solicitor for the REC, expressed the need to be cautious before any policy decisions are put in place, as there is a certain level of risk inherent with using alternative employment models.
Ms Laryea stated that the REC has received several queries through its Legal Helpline that have indicated interest in the commercial viability of the Swedish Derogation model, urging that employers take into account the full range of implications of such an employment classification.
Ms Laryea continued, stating that opportunities will arise from new regulatory structures, but new risks are brought to the forefront as well, additionally noting that in a business sector that is being impacted minimally by the new agency workers regulations, radically changing the structure of a recruitment services business may not be a necessity.
Both clients and agencies will find it most beneficial to thoroughly assess the impact of the new regulations, Mr Laryea concluded, and further made note that the Legal Services Team for the REC has published a very specific briefing document in regards to Swedish Derogation, with a close look at other alternative worker models to be examined in depth over the course of the REC’s AWR Training Workshops, which will be forthcoming soon.
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