European Law Report - Temporary agency workers
Around 8 million workers in the EU are temporary agency workers. Their jobs can last a matter of hours, months and in some cases more than a year. Temporary agency work is atypical, distinct from normal employment governed by definite or indefinite...
Around 8 million workers in the EU are temporary agency workers. Their jobs can last a matter of hours, months and in some cases more than a year. Temporary agency work is atypical, distinct from normal employment governed by definite or indefinite type contracts. Temporary agency work involves an agency, which acts as an intermediary between the worker and the user company.
Agency work is characterised by the fact that it is seasonal and temporary depending on the needs of employers to cope with fluctuations in demand or to cover for staff absence. Agency work is considered to be a flexibile option for employers to meet demand without long-term commitment. Agency work in Europe is on the increase since it allows employers to cut costs and increase flexibility by permitting them to adjust their staffing needs at short notice. It helps employers to find workers as and when they want them, while avoiding recruitment and administration expenses.
However, temporary agency workers are, for these same reasons, more vulnerable to abuse. A new directive, while harmonising the laws of the member states of the EU, affords greater protection to temporary agency workers in a bid to prevent their exploitation by employers. It lays down the principle of non-discrimination against temporary workers in order to curb less favourable treatment than permanent employees.
Although the directive had been proposed way back in 2002 by the Commission and trade unions lobbied constantly to get this law approved, consensus in the European Council was only recently reached due to resistance from a number of member states, including Germany and the UK. Their concern was mainly the possible reduction in temporary work and the impossibility to employ willing employees during busy times.
This directive is regarded as a step forward in the protection of temporary agency workers in terms of basic working conditions such as working time, rest periods, holidays and pay. Temporary agency workers now benefit from equal treatment as regular workers, employed under definite or indefinite contracts, as of day one. The only possible derogation from ensuring equal treatment is through collective agreements or agreements with social partners at national level. In any case, any derogations must be in line with EU law, and must still provide an adequate level of protection for temporary agency workers.
These workers will also have the opportunity of improving their position within the company by having a right to be informed about permanent employment opportunities in the user enterprise such that they are given the same opportunity as other workers in that enterprise to find permanent jobs. Any clause that prohibits the agency worker from forming a direct employment relationship with the employer after the temporary assignment ends is considered as null. Under the directive, temporary agency workers also benefit from equal access to collective facilities such as canteen, child care facilities and transport service that the user enterprise grants to fellow permanent employees.
The directive has still a way to go as it requires approval by the European Parliament. After adoption, member states will have a transitory period in order to implement the directive into their national laws.
jgrech@demarcoassociates.com
Dr Grech is an associate with Guido de Marco & Associates and heads its European law division.
Agency work is characterised by the fact that it is seasonal and temporary depending on the needs of employers to cope with fluctuations in demand or to cover for staff absence. Agency work is considered to be a flexibile option for employers to meet demand without long-term commitment. Agency work in Europe is on the increase since it allows employers to cut costs and increase flexibility by permitting them to adjust their staffing needs at short notice. It helps employers to find workers as and when they want them, while avoiding recruitment and administration expenses.
However, temporary agency workers are, for these same reasons, more vulnerable to abuse. A new directive, while harmonising the laws of the member states of the EU, affords greater protection to temporary agency workers in a bid to prevent their exploitation by employers. It lays down the principle of non-discrimination against temporary workers in order to curb less favourable treatment than permanent employees.
Although the directive had been proposed way back in 2002 by the Commission and trade unions lobbied constantly to get this law approved, consensus in the European Council was only recently reached due to resistance from a number of member states, including Germany and the UK. Their concern was mainly the possible reduction in temporary work and the impossibility to employ willing employees during busy times.
This directive is regarded as a step forward in the protection of temporary agency workers in terms of basic working conditions such as working time, rest periods, holidays and pay. Temporary agency workers now benefit from equal treatment as regular workers, employed under definite or indefinite contracts, as of day one. The only possible derogation from ensuring equal treatment is through collective agreements or agreements with social partners at national level. In any case, any derogations must be in line with EU law, and must still provide an adequate level of protection for temporary agency workers.
These workers will also have the opportunity of improving their position within the company by having a right to be informed about permanent employment opportunities in the user enterprise such that they are given the same opportunity as other workers in that enterprise to find permanent jobs. Any clause that prohibits the agency worker from forming a direct employment relationship with the employer after the temporary assignment ends is considered as null. Under the directive, temporary agency workers also benefit from equal access to collective facilities such as canteen, child care facilities and transport service that the user enterprise grants to fellow permanent employees.
The directive has still a way to go as it requires approval by the European Parliament. After adoption, member states will have a transitory period in order to implement the directive into their national laws.
jgrech@demarcoassociates.com
Dr Grech is an associate with Guido de Marco & Associates and heads its European law division.