Agency Worker Regulations

The Agency Worker Regulations will come into effect on 1st October 2011, but what does this mean for businesses?

Agency workers will be entitled to the following:

From Day One   -  Agency workers must have the same access to collective facilities and information as comparable employees.  For example, they must have access to canteen facilities, childcare facilities and information regarding vacancies.

After 12 weeks in the same role   -  An agency worker will be entitled to the same basic working and employment terms as if they had been employed directly.
     

The equal treatment applies to pay (including basic pay, overtime, holiday pay and bonuses directly linked to an individual's performance), annual leave and rest breaks along with the right to paid ante-natal appointments.

The terms of the regulations do not apply to some of the wider benefits enjoyed by permanent staff including pension provisions, occupational sick pay and bonuses based upon company performance.

The client will be responsible for any breaches of the day-one rights, while the agency will be responsible for agreeing the agency worker's terms and conditions and subsequently any breach of the equal treatment rights.

Exception to the regulations for agencies to consider!

The regulations will not apply to an agency worker who has been given a permanent contract of employment with an agency, with terms and conditions that apply across agreed assignments and payment being made in between assignments.  The agency must offer the worker suitable assignments and pay at least 50% of the highest basic pay (but no below the national minimum wage) received by the worker during the previous 12 week period.

Managing the implications of the new regulations

There are a number of options available to businesses to help avoid the impact of the new regulations, these include:

• Engaging agencies that take advantage of the exception to the regulation (see above)
• Increasing the use of fixed term workers
• Creating a bank of casual staff or workers with zero-hours contracts
• Allowing current staff the opportunity for overtime
• Increasing the use of self employed contractors
• Limiting the use of agency workers to less than 12 weeks, caution must be taken however, as there are anti-avoidance provisions contained in the regulations.

We can provide employers with guidance on the legislation changes.
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The Bribery Act

The Bibery Act 2010 will take effect from 1st July 2011; this will create four new offences:

• Offering a bribe
• Receiving a bribe
• Bribery of a foreign public official
• Failure to prevent bibery - the 'corporate offence' - when an organisation fails to stop people who are operating on its behalf from being involved in bribery.

So what is Bribery?

Bribery is defined as "the giving or taking of a reward in return for acting dishonestly and/or in breach of the law".  The Act is designed to punish those that bribe and those who turn a blind eye to bribery.

Businesses need to act now to have bribery prevention policies and procedures in place by July 2011 to ensure they are taking adequate measures to prevent bribery occuring at work. 

We can provide you with a suitable stand alone policy or incorporate the details into your existing documentation.

If a person who performs services on behalf of the organsiation in the UK or overseas (an employee, workers or consultant) accepts or receives a bribe, which results in the company gaining or retaining business, this is classed as a bribe.

If a person who performs a service on behalf of an organisation offers an inducement to another person, with the intention of acquiring or retaining business for the company, the company will be guilty of failing to prevent bribery.

Who is liable for prosecution?

Both the company and its directors can be found guilty of bribery and receive unlimited fines.

The company may be able to defend itself from liability if it can show that it has adequate procedures in place to prevent bribery being committed.

The Government has issued guidelines outlining six principles which organisations should use to prevent bribery.  These principles are:

Proportionate procedures

There should be clear, practical procedures in place, which are explained to people associated with the company.  The procedures should be effectively implemented and enforced.

Top level commitment

Senior management must be seen to promote a business where bribery is unacceptable.  They should be involved in the creation of relevant procedures, training courses and the communication of the organisation's belief that bribery is unacceptable.

Risk Assessment

The organisation should carry out regular assessments of the risk that bribery poses to the business, both internal and externally and should take into account cultures which exist in different countries and different sectors of industry.  Consideration should also be given to the opportunities for bribery and the number of parties involved in business partnerships.

Due diligence

Effective due diligence procedures should be in place in respect of those that perform services for and on behalf of the organisation.

Communication

The organisation  should provide training to educate anyone that carries out services for the organisation, providing them with an awareness of bribery, what the business approach to bribery is and how to address bribery when it occurs.

Monitoring and review

There should be continual monitoring of the procedures in place to prevent bribery and remedial action should be taken to address any identified issue.

Employers should be taking steps to prepare for the Act coming into force.  They should review their existing procedures, decision-making processes and financial controls to allow adequate controls are in place to prevent bribery.

Black Dog HR Consultancy can review your existing policies and procedures and offer guidance and assistance to implementing relevant changes.  We can also advise and assist with the communication to your people and help form an adequate defence.

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Average sickness absence falls

Research has shown that the average number of sick days the UK employee is taking has dropped from 6.7 to 5 days a year.

A distinct correlation has been demonstrated between companies that have a Sickness Absence Procedure in place and train their Managers to manage sickness absence.  Companies that train their Managers are a third more likely to reduce sickness absence.

There have been additional reasons for a decline in the level of absence over the last year; experts believe that the drop has been influenced by the current job market, with job insecurity and employees general appreciation for being in employment preventing them taking unnecessary days off sick.

The introduction of the fit note last year has also had an impact on absence levels.  20% of companies surveyed stated that the fit note had helped reduce absence and 28% reported they had helped return-to-work discussions.

For more information of how we help you manage your sickness absence call today 01280 817341 or Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Should interns be unpaid?

In the current economic climate there has been an increase in the use of Internships by businesses in the UK.

The majority of Internships are offered on an unpaid basis, but employers must be careful that Interns cannot be perceived as "workers" or "employees".  If this is the case then the Interns should be paid the National Minimum Wage - currently £5.93 per hour.

Health & Safety

Changes coming

More information is now emerging on the changes the HSE are making as a result odf the budget cuts.  Among various minor issues (moving offices etc) there is a significant change to some of the core services, namely:

• The HSE Infoline (free advice over the telephone) will be discontinued from 30th September 2011 and be replaced by a web based service (which already exists) that allows you to search for the information you want.
• The new charging scheme should come into effect from April 2012 which allows the HSE to charge for the services to companies which do not meet acceptable standards (consultation on this commences in July this year).

So, make the most of the few months remaining on the Infoline service to ensure you are suitably up to date or take a chance and run the risk next year of paying for any advice following an inspection visit.

If you require any assistance with any Health & Safety issues please contact either Rialto Health & Safety or Black Dog HR and we will be only too pleased to help.

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Special Points of Interest

Redundancy rules could be relaxed

The Government is set to review the redundancy rules that govern the length of time businesses have to consult with staff over proposed job losses and the amount of compensation payable for workplace discrimimation.

TUPE laws that protect staff terms and conditions when a business is transferred to a new owner will also be reviewed.

The review is hoped to cut the red tape that restricts business and the time scales that currently delay their ability to restructure efficiently and allow retention of a flexible workforce.

Update of the Government's review of employment law

• This week the Government will launch a consultation on plans to extend the right to request flexible working to all employees and the introduction of a new system of shared parental leave, due in 2015.
• New areas of review, to commence later this year, are compensation for discrimination, collective redundancy and TUPE.
• An independent review of the system for managing sickness absence has been commissioned.

EU ruling could limit sick leave holiday accural

The Court of Justice of the European Union (CJEU) will soon make a ruling on how long holiday entitlement can continue to be accrued for and carried forward if a worker has been off sick.

Business Link SE is closing

Plans have been finalised for the closure of Business Link South East in November 2011.  Full services will remain until September and gradually transfer to an on-line service at www.businesslink.gov.uk/southeast

Staff morale

The latest employee survey completed by the CIPD, shows that staff morale is undermined by falling standards of living and job security.

There has been an increase, since the previous survey, from  31% to 37% of employees saying that their living standards had worsened in the last six months.

Black Dog HR offer an Employee Engagement Programme for small and medium sized businesses - please call for more information: 01280 817341