17 September 2007

NEWS

CBI Urges Government to Resist Resurrection of Agency Workers Directive

The CBI and recruitment specialists Pertemps have published their 2007 annual employment trends survey which shows that some 250,000 placements could be lost if the draft Agency Workers Directive is resurrected in its present form by the EU.  Read more

Government Announces Bigger Fines for Rogue Employers

The Secretary for Business and Enterprise, John Hutton, used the TUC annual conference to announce further increases in fines for rogue employers and employment agencies who pay workers less than the minimum wage.  Read more

Increased use of the Internet in Managing Employees has led to Virtual Workforces 

Increased use of the internet in recruiting, training and managing staff has led to the creation of "cyber offices" where HR professionals never meet the teams of employees they have to manage.  Read more

£50m Subsidy to be Paid to Remploy's Displaced Employees

Remploy, a government-funded agency which helps disabled people find employment, has announced that displaced employees will receive subsidies of up to £50 million over the next five years when more than half of Remploy's factories are closed.  Read more

Government Plans for Businesses to Have In-House Training Programmes Accredited

The Skills Secretary, John Denham, has said that England's qualifications watchdog, the QCA, is consulting on the accreditation of employers' in-house training programmes.  The move would result in employees gaining recognised qualifications when completing training schemes offered by their employers.  Read more

Forty Per Cent of Flexible Workers Have No More Time to Themselves

A survey of more than 1,400 workers for Orange Business Services (OBS) has revealed that 40 per cent of those who work flexibly do not have increased leisure time or quality time with their families.  Read more

Action4Equality Issues Almost 3,000 Negligence Claims Against Trade Unions

Following last month's EAT decision to overturn a tribunals' finding of sex discrimination against the GMB union, Stefan Cross's organisation Action4Equality has issued almost 3,000 negligence claims against the GMB, the Royal College of Nursing, Unison and Unite TGWU.  Read more

New Acas Chair Appointed

Edward Sweeney has been appointed as new Chair of the Acas Council.  Read more

LEGISLATION

There is no new legislation to report this week.

CASES

There are no new cases to report this week.

NEXT HR NETWORK EVENT

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NEWS

CBI Urges Government to Resist Resurrection of Agency Workers Directive

The CBI and recruitment specialists Pertemps have published their 2007 annual employment trends survey which shows that some 250,000 placements could be lost if the draft Agency Workers Directive is resurrected in its present form by the EU.

As reported in our earlier Briefing, the Directive, which aims to give temporary workers the same pay and employment rights as permanent staff after just six weeks on an assignment, has been put back on the European agenda.  The CBI and Pertemps survey of over 500 firms indicates that implementation of the Directive would eradicate the flexibility and convenience of employing agency workers for both employers and the temporary agency staff themselves.  They say that this would then result in a "significant" cut in the use of temporary workers and put up to 252,000 placements at serious risk.

Speaking on the first day of the TUC Congress, the CBI's Deputy-Director General, John Cridland, said: "Use of temporary agency staff is vital for employers seeking to manage surges in demand.  At the same time, these jobs offer quality work to people who actively choose a form of employment that allows them to balance responsibilities or pursue other interests.  Many are women returning to employment after having a family or young people for whom this is a first essential step into further employment."

"But this important section of the workforce has an uncertain future if the government caves into pressure for a new EU law.  Hundreds of thousands of jobs will be put at risk unless Gordon Brown rejects it outright, or at least insists on a qualifying period of a year before full employment rights apply to a temporary post.  As proposed, the Directive would seriously undermine the flexibility that temps offer to firms, hurting the economy and making them far more likely to rely on overtime flexibility from existing workers instead."

The Chairman of Pertemps, Tim Watts, shared Mr Cridland's anxiety.  He said: "People take up temporary work for a variety of reasons, sometimes to gain experience with a view to securing a permanent role or to build work around their other commitments, like caring for a family or elderly relative.  We should not confuse people who choose to work flexibly with people who are 'vulnerable'.  From my experience, making the conditions for temporary agency workers the same as for permanent staff would actually make them less attractive in the job market and that would risk the livelihoods on which they depend."  (CBI Press Release, 10 September 2007)  Back

Government Announces Bigger Fines for Rogue Employers

The Secretary for Business and Enterprise, John Hutton, used the TUC annual conference to announce further increases in fines for rogue employers and employment agencies who pay workers less than the minimum wage.

Fines were only recently increased to £225 for each worker underpaid and to £5,000 for persistent breaches but are to go up further according to John Hutton's announcement. 

There is also to be an increase in the number of staff who will enforce the minimum wage rules and the number of inspectors in the Employment Agency Standards Inspectorate will be doubled to tackle the problem of rogue employment agencies.

In addition, Mr Hutton announced new laws "to end the suspect practice of forcing agency workers to pay for accommodation or transport – giving them a real choice and a right not to take services they don't want."

Mr Hutton said: "These rights are fundamental to a decent society.  But it is only by ensuring they can be exercised that we can give protection to the most vulnerable and ensure our economy can prosper in future."  (Financial Times, 13 September 2007)  Back

Increased use of the Internet in Managing Employees has led to Virtual Workforces 

Increased use of the internet in recruiting, training and managing staff has led to the creation of "cyber offices" where HR professionals never meet the teams of employees they have to manage.

TeleTech, a global outsourcing firm, is an example of a firm which is embracing the "cyber office".  It has announced that it will recruit up to 700 staff to a newly established virtual customer services branch in the UK.  The new staff will apply for their jobs online, will work from home and will never need to meet their manager face to face.

TeleTech's managing director, Cormac Twomey, explained how "cyber offices" offer workers flexibility.  He said: "People want to return to the workplace, but at the same time be flexible enough to be close to home and their family."

Mr Twomey did not dismiss the benefits obtained through human contact and detailed how his firm tries to ensure that its home-workers do not feel disengaged.  He said: "we use web-based seminars, self-learning modules, phone updates, and virtual training rooms with online trainers, so there is always human contact amid the online environment."  (Personnel Today, 11 September 2007)  Back

£50m Subsidy to be Paid to Remploy's Displaced Employees

Remploy, a government-funded agency which helps disabled people find employment, has announced that displaced employees will receive subsidies of up to £50 million over the next five years when more than half of Remploy's factories are closed.

As reported in our earlier Briefing, Remploy announced plans to close some of its 83 factories as part of a restructuring of the agency.  The agency is to close or merge 43 of these factories and believes that the "vast majority" of affected workers will have jobs in the private sector within a year.  The subsidies will be paid to disabled workers who find employment in the private sector but receive a lower wage than the salary they received at Remploy – the subsidy will make up the difference.

A spokesperson for Remploy said: "It's a subsidy to the employee, not the employer.  It will also be less than the amount the taxpayer is [currently] subsidising each employee, which is to the tune of £20,000 a year."

The £50 million subsidy will cover the employees' wage losses for the next five years. However, there is a commitment to cover losses for the rest of their working lives so further subsidies will be paid in future.  Remploy's chief executive, Bob Warner, said: "There will be a continuing cost, but it will be a reducing cost.  The average age of our workers is 47."  (Financial Times, 11 September 2007)  Back

Government Plans for Businesses to Have In-House Training Programmes Accredited

The Skills Secretary, John Denham, has said that England's qualifications watchdog, the QCA, is consulting on the accreditation of employers' in-house training programmes.  The move would result in employees gaining recognised qualifications when completing training schemes offered by their employers.

Mr Denham said: "We want to end the outdated distinction between employers' training and public qualifications.  By bringing qualifications and skills closer than ever before, business, employees and the state will all benefit."

Though it recognised that workplace training should be accredited, the Government has dismissed the idea of allowing employer-accreditation, preferring a system of accreditation by external bodies.  Mr Denham has now written to the heads of all further education colleges in Britain telling them that the Government wants to create: "a truly demand-led, responsive system".  (BBC News, 12 September 2007)

To see our earlier Briefing on the Government's dismissal of employer-accredited workplace training click here. Back

Forty Per Cent of Flexible Workers Have No More Time to Themselves

A survey of more than 1,400 workers for Orange Business Services (OBS) has revealed that 40 per cent of those who work flexibly do not have increased leisure time or quality time with their families.

The survey, Beyond Boundaries, discovered that 45 per cent of the workers surveyed believed that flexible working means working more during your free time, evenings and weekends.  The responses suggest that many people are working longer hours for less money.

Robert Ainger, the director of communications for OBS, said: "There are gaps between perception and reality.  A key challenge is how notions of effectiveness are being redefined.  Being the first or the last in the office can no longer be a measure of an employee's commitment and productivity and managing a flexible workforce will mean worrying less about how employees work and more about what they produce."

The OBS survey made a number of findings including:

• 50 per cent of UK employees think the option to work flexibly is a key factor in choosing their next job;
• employees fear that absence from the office may keep them out of the loop; and

• effective management of flexible working will help organisations be more competitive, successful and retain the best talent.

(Personnel Today, 11 September 2007)  Back

Action4Equality Issues Almost 3,000 Negligence Claims Against Trade Unions

Following last month's EAT decision to overturn a tribunals' finding of sex discrimination against the GMB union, Stefan Cross's organisation Action4Equality has issued almost 3,000 negligence claims against the GMB, the Royal College of Nursing, Unison and Unite TGWU.

As reported in our earlier Briefing, the EAT held that union advice to its members to accept settlement in an equal pay dispute was justified and did not amount to indirect sex discrimination.  The negligence claims have been issued over the unions' handling of their female members' equal pay dispute.

Although almost 3,000 claims have been issued already, Action4Equality intends to use a fresh campaign to increase this number. 

A claim for negligence has its advantages for the claimants – unlike the six month deadline for claiming sex discrimination negligence claims can be made within six years.  In addition, Stuart Hill, an equal pay campaigner with Action4Equality, said: "Suing for sex discrimination is complex but suing for negligence is straightforward and simple by comparison."  (Equal Opportunities Review, September 2007)  Back

New Acas Chair Appointed

Edward Sweeney has been appointed as new Chair of the Acas Council.

Mr Sweeney will take up his new position on 1 October and replaces Rita Donaghy. The appointment is for a three year term. Back

© Pinsent Masons 2007

This bulletin is not intended to be a definitive analysis of legislative or other changes and professional advice should be taken before any course of action is pursued.

Should you have any questions please contact your usual Pinsent Masons advisor, your local office (see below) or hrnetwork@pinsentmasons.com

National Head of Employment

Chris Booth