Too many employers and recruitment agencies are ignorant about the cost, legal and practical implications of the Agency Workers Regulations, which will come into force next year, an HR director has warned.

Louise McCarthy-Teague, group HR director at multi-sector recruiter Meridian Business Support, urged in-house and agency recruiters to take action now if they are to be ready in time. She was speaking at a joint Meridian/Recruiter roundtable event in London last week.

Meridian themselves have 7,500 temps, McCarthy-Teague said. Changes to its existing payroll system and increased awareness of its staff of its temps’ assignments for other agencies are among the adaptations Meridian expects to make within its business as a result.

Ahead of 1 October next year when the regulations come into force, the actions taken by Meridian so far have included:
free seminars to educate clients, potential clients and fellow recruiters

• a monthly newsletter
• a focused LinkedIn group
• ongoing staff training

However, McCarthy-Teague added: “This is the start of our journey. It’s a huge investment both financially and intellectually, and this is going to have to double or treble next year.”

Kate McCarthy, owner of retail, HR and hospitality recruiter McCarthy Recruitment, said she hadn’t looked at the issue before the roundtable, but added that in this she wasn’t alone. “I expect there are a lot of my peers who are in the same position and are frightened by the bureaucracy.”

McCarthy agreed that it was important to take action rather than wait for the official Department for Business, Innovation and Skills guidance expected in the spring. “If I say to a client ’I am waiting for the guidance’, then they are going to be disengaged,” she said.

Attendees included representatives from the Trades Union Congress, various trade bodies, recruitment agencies, employers, business organisations and employment law practitioners.