Suggestions that the Government will support an EU directive giving temporary agency workers the same pay and benefits as permanent staff from day one will make contracting less attractive to workers and increase the cost of using contractors, according to contractor specialist, Giant Group.
The European Union last debated the Agency Workers Directive more than a year ago when disagreement among member states blocked its progress into law.
The Dutch Government, however, is said to be trying to revive the legislation and push it through during its six-month EU presidency, which began on 1 July.
The UK Government is alleged to have given a commitment to the trade unions last weekend that it will drop its opposition to the directive in exchange for their support at the forthcoming general election.
Matthew Brown, managing director, of Giant, said: "The whole point of contracting is that you don’t want to be an employee but an independent business."
"People choose to contract because they want the freedom to decide how to manage their own affairs. They don’t want end-users being forced to provide them with the same working and employment conditions, ranging from benefits such as pensions to control over rest and holiday period, as permanent employees. This directive will undermine that flexibility."
Trowers & Hamlins law firm believes the directive could make contractors less attractive to end-users because of the employment-related risks end-users may be exposed to as a result.
Employment partner, Emma Burrows said: "By giving temporary workers taken on through agencies new employment rights, such as holiday and sick pay entitlements, the number of areas in which employment-related claims could be brought by temps against employers is likely to increase."
"Businesses will have to tread carefully. If they get it wrong on equal treatment for temps they could be taken to tribunal," she said.