Employing temporary workers in the UK is set to become more expensive following a ruling by the European Court of Justice (ECJ) on the right to paid holiday.

The news is the latest legal blow to recruiters, and comes on top of the Employment Agencies Act Regulations which are expected to be implemented later this year.

Freelancers will be entitled to four weeks’ paid holiday regardless of how long they have worked for their employer, following the decision in BECTU v UK.

The case follows the decision of Antonio Tizzano, Advocate General of the ECJ, (see ‘Temp holidays: shock ruling’, 28 February) who said that the UK’s current law, which requires temps to work for 13 weeks before they accrue holiday, is unlawful.

As predicted by Professional Recruiter, the ECJ has followed Tizzano’s decision that the right to paid holiday ‘is an automatic and unconditional right granted to every worker’.

The news means that the government will have to amend s13(7) of the Working Time Regulations, as it is incompatible with European law.

Tim Nicholson, chief executive of the REC, said: ‘We’ve sent out a message to all our members advising them of the change, and we are carrying out consultation to assess views and see how it will affect recruiters.

‘But we have to obey national law and, for the time being, the 13-week qualifying period remains.’

But Clare Murray, employment law partner at City solicitors Fox Williams, warned that non-compliance now could leave employers liable to a legal claim. ‘Businesses should sort themselves out now and gear up for the change,’ she said.

She also predicted that the change in the law could lead to a rash of claims against the government for failing to implement the European working time directive properly. ‘As ever with employment legislation, this is an example of the corporate community picking up the cost rather than the government. This is a transfer of responsibility,’ she said.