Labour Research October 2001

Law Matters

Government delays new temporary worker law

The government has decided to delay the introduction of a new law, which will give temporary workers the right to be treated no less favourably than permanent workers.

The Fixed-Term Contracts directive was adopted by the European Union (EU) in 1999 and should have been in force in the UK by July this year. Indeed, in March this year the government published draft regulations, which set down its views on the scope of the new rights.

The intention at the time was that the consultation period would end in May and the final regulations would be published in time for the July deadline. However, after an effective employers' lobby, the government had second thoughts and is now proposing not to introduce the legislation until the last possible moment permitted under European law, which is July next year.

The TUC is warning that the government may be preparing to water down the rights guaranteed by European law. There are two areas of particular concern. The draft regulations excluded the right to equal treatment in pay and pensions in seemingly direct contradiction to the European directive. In addition temporary workers employed by agencies were to be excluded from the right to no less favourable treatment.

There are 1.7 million workers on temporary contracts, making up 7% of the UK workforce. Of these 16% are employed through agencies, double the proportion employed by agencies eight years ago.