The Agency Workers Directive (AWR) that comes into force on 1 October could undermine a trend for employers to take on people as temporary workers first before recruiting them permanently, according to Albert Ellis, CEO of Harvey Nash Group.

Speaking at the launch of the latest CBI/Harvey Nash employment trends survey, Ellis said that AWR could lead to more recycling of temporary staff rather than to them being taken on permanently. 

He said Harvey Nash had seen “a huge trend” for employers to offer temporary staff permanent roles after three to six months, but that this could be undermined by AWR.

Ellis said that employers find this a useful way of deciding whether a person fits in before they offer them a permanent job.