We have had a few of our clients ask for more information on the Good Work Plan 2020 for Agency Workers. We have tried to establish the status of the legislation surrounding Agency Workers. However, it’s still showing as a draft piece of legislation, which is likely to be in place on 6 April 2020. However, the General Election may affect this.
Consecutive Contracts to be Banned
Assuming that the legislation goes through, from 6 April 2020 you will be required to provide your workers with a statement of their rights on day 1 of their engagement. This means, what you will not be allowed to do is to offer a worker consecutive 12-week contracts in the same role. That is to say, this practice is expected to be banned from 6 April 2020 as an exploitative method of employing people.
Same Rate of Pay
Your obligation to pay temporary workers the same rate as employed staff remains unchanged if they are on an assignment in the same role for longer than 12 weeks. Agency workers can, at the moment, opt out of receiving the same pay as employed staff after the 12 weeks, this will no longer be the case from April, you would have to pay them the same rate as employed staff.
Most importantly, the statement of rights that you provide on day 1 must specify how they’re engaged, whether they’re employees or workers and who their employer is. As above this must be issued on day 1.
New Documents Required
However, from 6 April 2020, you will need to issue a Key Information Document in addition to the Terms of Engagement. Therefore, You must draw up a separate document to the Terms of Engagement.
(a) It must be entitled “Key Information Document”.
(b) It must be given to the Worker before agreeing the terms on which the work-seeker will undertake work.
(c) It must include information about the type of contract the work seeker will be engaged on;
• the identity of the employment business;
• the minimum rate of pay;
• how they will be paid and by whom (e.g. by the employment business or an intermediary);
• non-monetary benefits the work-seeker will be entitled to;
• details of any deductions that will be made;
• and details of entitlement to holiday and holiday pay
• an illustrative example of what their take home pay would look like.
(d) It must be separate to any other documents provided, (i.e. your Terms of Engagement) and be easy to read and understand
(e) It must only be on a maximum of two sides of A4.
(f) It must include a notice stating that it contains key information relating to the work-seeker’s relationship with the employment business,
(g) It must identify the location of any other related information and include contact details for the person responsible for handling complaints about breach of the Conduct Regulations.
(h) The employment business will need to be able to demonstrate the that the document has been given to the work-seeker.
Strengthening of Powers
Further changes, such as strengthening of the powers of the Employment Agencies Standards Inspectorate, are expected in the future. This is to address perceived agency worker vulnerability and we will let you know if we hear any further news on this subject over the coming months.
The Good Work Plan proposes a right to request a more stable contract after 26 weeks of casual employment, in addition to enhanced awareness of rights to holiday pay. We cannot establish if this is coming into law or not.
Clarity on Employment Status
There is an intention to align the status of individuals around tax and employment rights, but detailed proposals are said “to follow”. However, the government has already said it wants to clamp down on businesses which “misclassify and mislead” people about their employment status. The broader aim seems to be to end anomalies which see some individuals taxed as self-employed but entitled to holiday pay and other worker rights.
So, if you think you may need advice on the Good Work Plan 2020 for agency workers or how you will need to prepare for the changes in April 2020, then please call us on 01706 565332 or email firstname.lastname@example.org
Metis HR is a professional HR Consultancy based in the North West of England supporting clients across the country. We specialise in providing outsourced HR services to small and medium-sized businesses. Call us now on 01706 565332 to discuss how we may help you.