Is this going to undermine the UK's flexible labour market by making it less attractive to use Agency Workers?

The implementation of this regulation has been delayed until October 2011. When enforced the regulations are estimated to cost 0.3 per cent of the UK pay bill and it will be important for hirers to identify what new working practices will be required to accommodate them.

What is a temp?

A temp is a person supplied by a temporary agency to work "temporarily and for and under the supervision and direction of a hirer." The definition will therefore exclude:The genuinely self employedThose working through their own limited liability companiesThose working on managed service contracts.

Qualifying period

After completing 12 weeks in an assignment, temps will be entitled to the same basic working and employment conditions as if they had been recruited directly by the hirer on day one of the assignment. The basic working and employment conditions will include comparable salary, overtime or commission payments, rest breaks and holiday entitlement.

What they won't get

Temps will not receive sick, redundancy pay or pension, benefits in kind or bonuses, incentive payments or rewards.

Costs again!

How will compliance with the regulations affect organisations costs and practices? They may want to consider whether there are more effective ways of meeting their flexible labour needs? This might include moving to direct recruitment, engaging casuals through an "in-house" bank of workers, use a third party to employ workers directly or increase the use of self-employed workers.

Avoiding the issues?

If hirers decide to use agency workers for fewer than 12 weeks by, for instance, placing agency workers on a series of 11 week contracts or varying their roles every few weeks then look out as this is prohibited and may attract a not insubstantial fine of £5,000.

N.B. as the election has only just taken place we need to wait and see if there will be implementation of the regulations in its full form or whether the government will be imposing or recommending changes to the legislation.