March 2008 

A backbench MP, Andrew Miller, has tabled a Private Member's Bill on Agency and Temporary Workers. As a Minister, I am unable to support this Bill, but I thought I would update you with what we are doing to address this issue.

The government is committed to protecting vulnerable workers in every sector. Since 1997 we have introduced legislation to give increased rights to agency workers, such as the National Minimum Wage, the right to time off and rest periods, maternity and paternity paid leave, protection against discrimination, equal treatment for part time workers and the right to join a trade union. None of these entitlements existed for agency workers prior to 1997.

Agency workers form an important part of our economy but there are abuses to the system. Some temporary staff end up remaining on the payroll on a permanent basis, while some agencies move workers in and out of businesses so fast it is disruptive to workers’ lives. The government is doubling the number of Employment Agency Standards Inspectors to crack down on such abuses. But we recognise that in some areas agency workers need greater protection under law.

Negotiations have been underway in the EU on a Directive on Temporary and Agency Workers, but this process is currently deadlocked. The key issue is that such an agreement must take account of the particular labour market we have in the UK, which is very different to other EU countries. Any arrangement must maintain the flexibility in our labour market that has served our economy and employment figures so well.

We are committed to resolving this issue soon, to reach an EU-level agreement. We have proposed a process that will bring together business and unions, including the CBI and TUC. This approach worked very well before, when we convened the Low Pay Commission to advise on how to implement the National Minimum Wage. We expect this new body to resolve some of the key issues and allow us to present a solution to the EU this summer.

Mr Miller’s Bill is a useful part of the debate, but does not propose appropriate legislation. European agreement is key as any independent UK legislation would be overruled by the EU Directive.

We remain committed to our 2005 Manifesto pledge to resolve this issue, in line with the ‘Warwick Agreement’ in 2004. This government has a historic tradition of providing greater protection for workers, and we have made great strides since 1997 in this area. We expect to be able to make an announcement on progress towards even greater protection for workers in the very near future.