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Why Hiring Temps Could Mean Taking On More Than You Bargained For
Added: (Thu Dec 08 2005)
The hiring of temporary workers has become the solution of choice during busy periods for many companies in the UK. At first glance using temps appears to provide all the benefits of having additional employees, without any of the responsibilities this would usually entail. Temps can be drafted in far more quickly than in-house appointments, and, as they are employed by the agency, payroll and tax is dealt with externally, reducing the administrative burden. You are even free to terminate a temp’s contract whenever you wish, without redundancy payments or tribunals to worry about. In short, temps can be regarded as someone else’s responsibility, enabling you to focus on your business without distraction.
This is the rosy picture many recruitment agencies paint for their clients. The reality, however, is rather different. In recent years the courts have started to look with fresh eyes at the working status of temps within UK businesses. And what they are seeing is not ‘someone else’s responsibility’, but workers that deserve the same rights and protection as their colleagues with permanent employee status. This can prove to be an extremely costly distinction, as employees receive a much greater level of protection, which could leave you exposed to potentially ruinous claims of unfair dismissal or discrimination and associated legal fees of tens or even hundreds of thousands of pounds.
When is a Temp Not a Temp?
Temporary workers with a grievance are often advised to pursue the company at which they were placed for damages, rather than their agency. This is because the courts increasingly view temps as ‘disguised employees’ and the end user as their employer, unless the recruitment agency can be shown to have taken ongoing direct responsibility for the worker above and beyond having produced a contract at the beginning of the working period. A company is likely to be deemed the employer if they:
· Appraise the performance of the temporary worker
· Instruct the temporary worker on a day-to-day basis
· Liaise with the temporary worker regarding time-off for holidays
· Hire the temporary worker for a long period (e.g. 12 months)
· Terminate the employment of the temporary worker
How To Avoid Becoming the Employer
There are measures you can undertake to avoid being deemed the employer. If you need to use temps for a long period, for example, you can choose to only use individuals for short periods, and then bring-in and train new people. You can also avoid providing direct assessment or instruction. These scenarios, however, can be both inefficient and disruptive to your business, and risk negating the benefits of having temps in the first place!
A solution suggested by some agencies is that businesses should actively minimise temps integration into the workplace by not involving them in team activities. This approach, however, can be in breach of the EU Fixed Term Work Directive, which states temporary workers must not be treated less favourably than permanent workers, including factors such as access to training.
Help is at Hand
By far the best way to negotiate the legal minefield of using temporary workers is to use an employment agency well versed in employment law, and experienced in ensuring temporary workers remain just that – not a full time liability.
When selecting an agency in Lancashire first check they are registered with the Recruitment and Employment Confederation (REC). The REC ensures its members are right up-to-date with all the latest legislation and receive training in recruitment best practice. Look also for agencies that are ISO 9001:2000 certified by a UKAS accredited certification body, members of the British Safety Council, the British Quality Foundation and an Investor in People. And don’t hesitate to ask questions to check your agency understands the extent of their responsibilities.
Temporary workers can provide a cost efficient flexible workforce, but the days when there were no strings attached are over. Make sure you protect yourself in the coming year by choosing an agency that will do more than just get the job done.
Linda McConville is Recruitment Manager at Intec (UK) Limited. Visit www.inteconline.co.uk or call 01524 426 777 for more information.