A new survey shows that a third of employers will start sacking temporary staff so they don’t have to pay them the same as permanent workers under the EU employment law. Research suggests many short-term employees will have their employment terminated before their 12 week trial period is completed.
Under the new EU Agency Worker directive, after 12 weeks employers must now pay temporary staff the same wage as permanent staff. The survey of 42 recruitment agencies showed that 29 percent intended to terminate short-term contracts before the trial period was up. Tens of thousands short term workers will be affected! Some of the agencies were already in process of terminating contracts.
The new employment law was first introduced by the Labour government and then it was reassessed by the department for business, innovation and skills after the election. The Liberal democrats ministers later announced that it would be implemented as planned. The Government has told how it has been forced in to introduce the regulations following pressure from trade unions!
Since the decision was taken the economic situation has deteriorated significantly and senior conservatives are understood to be angered by the change. An analysis confirms that it will cost firms more than £1.8 billion a year leading to big warnings from big employers that make them have to cut jobs. An average small business will have to pay an extra £2,493 a year increasing to £73,188 for larger firms!
It was said that if ministers had refused to implement the new regulation they would have faced legal challenges from a lot of employment lawyers and agency workers.