Agency Workers Regulations

1. Agency Workers Regulations 22nd September 2011 This publication provides information on legal issues and developments of interest to our clients. The material is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed in this publication.

2. Agenda • Overview and Background to AWR • Who’s involved? • What does equal treatment mean – Entitlement & what is included. • Claims, Liability & Penalties • Comensura approach – timetable & data capture • Impact Analysis • Comensura Assignment Process • FAQs & Issues • Other Options • Conclusions

3. Overview of the Regulations What are the Agency Workers Regulations? • The Agency Workers Regulations are intended to promote equality in the workplace and reduce the potential for exploitation of vulnerable workers. • They extend existing Prevention of Less Favourable Treatment Regulations for part time and fixed term workers to Agency Workers, • The Agency Workers’ Regulations bring the European Agency Workers Directive into UK law. • They entitle temporary workers to equal treatment with regard to pay and working conditions, as someone recruited to do the same job but on a permanent basis with the hirer after a qualifying period of hire. When do they come into effect? • The Regulations will be implemented from the 1st October 2011, regardless of length of assignment. • The entitlement for all temporary workers will therefore be effective from early 2012.

4. Who’s Involved? • Tripartite relationship – Workers, Hirers (any organisation booking Agency Workers to work under it’s direction, supervision & control) and Temporary Work Agency (TWA) and any intermediaries are in scope. Workers supplied by TWA to the hirer via a Master or Neutral Vendor are in scope. • An individual is not an Agency Worker if — • They are genuinely self-employed, working through their own account, and the Agency or the Hirer is a client of their business undertaking or profession. Hirer Intermediary Temporary Work Agency Agency Worker

5. The Entitlement • After qualifying, an Agency Worker is entitled to the same basic working and employment conditions as if they had been recruited directly by the Hirer, to do the same or broadly similar job, with the same skills and qualifications. • The comparable terms and conditions as documented or generally applied in the workplace. • Reference to comparable employees (the Comparator) on those terms will be evidence of compliance. • If there are no comparative terms, then those applied at other locations of the Hirer may be considered.

6. What is included & excluded • What is excluded ? • Bonuses and benefits intended to reward loyalty or long service • Rewards based on company performance • Pensions • Sick, maternity, paternity or adoption pay above the statutory minimum • Redundancy payments • Staff discount schemes  What is included? • Basic rate of pay, overtime and shift premiums. • Bonuses related to the quality or quantity of work done. • Fixed value vouchers. • Hours of work, rest and breaks. • Holiday entitlement above the statutory minimum. • *Employees’ facilities such as canteen, car park or crèche, subject to objective capacity. • *Equal access to apply for internal roles.  *Day 1 entitlements

7. Claims, Liabilities & Penalties After Qualifying, the Agency Worker can request details of how their pay and conditions were determined. • Agency has 28 days to respond, if they do not, the Hirer has further 28 days to respond. • An Employment Tribunal can draw an adverse inference if a written statement is not provided. Claims will be made through the Employment Tribunals: • Usually a 3 months deadline from the date of the detriment to claim. • Informal conciliation or through ACAS is encouraged. • Protection against victimisation for those giving evidence in Employment Tribunals

8. Claims, Liabilities & Penalties • Any or all parties will be liable to the extent that the ET decides it is responsible • Any or all parties will have a defence if they can demonstrate they have • Taken reasonable steps to determine the comparable terms • Applied those terms at the end of the qualifying period • The tribunal will compensate the worker for the infringement of their rights or any detriment suffered • The minimum award will usually be 2 weeks pay • Where assignments have been structured to evade the Regulations, an additional £5000 penalty may be awarded • Injury to feelings is excluded

9. Timetable Change Control GO LIVE Communications Data Gathering Data Validation Sign Off Impact Analysis System Upload

10. Data Capture

11. Impact Analysis • Quantify the usage of flexible labour in your processes – how many, where and when? • Identify comparable employees in your location or elsewhere with whom equal treatment might be expected • Establish what equal treatment will mean – what will be the impact on costs? • Basic pay, premiums and incentives • Holiday entitlement • Collective facilities • Job opportunity policies • Review of internal procedures – who decides on use of temporary workers?

12. C.Net: Order/Assignment SUPPLIER CLIENT Day 1 Benefits & Parity Data Places Order YES Parity Data? NO Order Rejected QP position of candidates Submits Candidates Assignment Creation / Start Confirm Parity Data Confirm QP/PED AWR Statement

13. FAQ’s & Issues • Self employment, umbrella companies etc • Paid annual leave • Can there be an “offset” of greater pay against other benefits? • Child care vouchers and salary sacrifice schemes • Expenses, company cars and season tickets • Team nights out • Will Comensura provide information regarding how close workers are to qualification? And can they be “discriminated” against? • Off contract spend

14. Other Options • Do nothing • Pay parity • Avoiding comparators • Fixing Comparators • Short term bookings • Internal “bank” of staff • Outsourcing • “Swedish Derogation”

15. Conclusion • All Hirers, Agencies and Intermediaries will carry an administrative burden • Comensura will take the lead in compliance but cannot take total responsibility. • Partnered action is necessary for effective implementation • Full commercial impact analysis is underway. • Evasion schemes carry a high risk of penalty, both financial and reputational.