The government will announce today that the agency workers’ directive (AWD) will not be implemented until October or December 2011 – the last possible date under EU law.

Recruiter understands that minister of state for employment relations and postal affairs, Pat McFadden, will make a statement later today and that the draft regulations will be published this morning.

The purpose of the directive is to give agency workers some of the rights of permanent workers after 12 weeks.

David Frost, director general of the British Chambers of Commerce (BCC), says: “With these announcements, the government is sending out a positive message to business. Additional employment legislation would be a real barrier to job creation at a time when unemployment could approach 3 million.  
 
“Small businesses consistently report that new employment legislation is the area of red tape that is most harmful to growth.
 
“Smarter regulation - reducing the burdens on business - is opening up as a key battleground between the main political parties. This can only be good news for the UK economy.”

REC chief executive Kevin Green says: “We are delighted that key concerns raised by the REC on behalf of members have been listened to and that a number of the recommendations put forward by our Agency Work Commission  - in particular with regards to timing - have been taken on board.

“Rather than wasting time with politically and legally redundant demands, the REC will continue to adopt a pragmatic approach to making equal treatment work in the UK and to ensuring that agencies receive the support they need. It is essential that the government continues to listen to those who will be making equal treatment measures work on the ground.”

Adrian Marlowe, chairman of the Association of Recruitment Consultants (ARC), says: “The delay in implementing the AWD is welcome news. We and many others had pressed for this and there is no doubt that many businesses will breathe a sigh of relief.  However, it is crystal clear that the real deal is to get the terms of the legislation right, to minimise the potential damage to businesses.

“ARC has proposed a trial to assess the true cost and impact of any new legislation and the delay would give the government time give this idea the go-ahead.”

“The ideas set out in the first consultation document are extremely complex, with the potential for massive disruption and real chaos in the temporary and contract recruitment industry. Faced with that prospect it makes sense to trial the scheme first.”

Sean Thomas, head of HR at Habitat, told Recruiter that he has already been preparing for the introduction of the legislation: “Even though this legislation has been delayed, we have been treating part-time and temporary workers equally in the past 18 months.

“The Christmas temps we had last year accrued holiday, so we had to let them take the time off or pay them up.”