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The Conservative party has made no secret of the fact that it wishes to revisit the Agency Worker Regulations, drawn up by the last government and due in force in October 2011. Speculation continues that, in coalition government, they intend to do just that, the Liberal Democrat party having also made a pre-election pledge to end "gold-plating" of EU rules in the UK. The outcome of any such review can only be speculated about for now but events have taken a new twist today with the publication of a letter from Ed Miliband MP to the Prime Minister, enquiring about the Government's intentions. In a letter to David Cameron, two clear questions have been posed, questions to which many eagerly await an answer: "What is the nature of [the Government's] concerns over the regulations" and "What amendments is the Government currently considering to these important regulations"?
Mark Hammerton, partner at international law firm, Eversheds comments:
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"It has been clear for some time that the Agency Worker Regulations were likely to be reviewed on a change of government, the Conservative party having voiced concerns that the UK has been guilty of "gold-plating" certain policies emanating from Europe, the Agency Worker Regulations being identified as one such example. Just last month, it was announced that the Coalition Government would be creating a new Cabinet "Star Chamber" to lead the Government’s drive to reduce regulation which, in its view "is stifling growth, especially of small businesses." The role of this Reducing Regulation Committee, which will be chaired by the Business Secretary, will include an immediate review of all regulation in the pipeline for implementation as inherited from the last Government, including the Agency Worker Regulations.
"Whilst this review gets underway, it needs to be remembered that effecting changes to the Agency Worker Regulations at this stage is unlikely to prove straightforward for the Government and will involve "tweaks" rather than wholesale reform. It cannot be ignored that the UK bought in to the Agency Workers Directive and cannot lawfully deviate from its terms. However, what it can do is revisit the interpretation of the Directive's wording. The Agency Worker Directive is less prescriptive than many Directives and presents more of a framework for compliance than detailed requirements. "Pay", for example is undefined. This therefore leaves some room for manoeuvre in the UK and opportunity to amend some of the provisions inserted in to the Regulations. The way in which the former government chose to interpret "basic working and employment conditions", presents an obvious example. Many respondents to the consultation process were unhappy that this has been taken to extend beyond mere basic pay and statutory minimum holidays and includes many staff bonuses and benefits. The Government may opt to water down such provisions to apply the bare minimum requirements of the Directive. It will not have smooth passage, however, should it do so. Opinions as to the merit and nature of these regulations has long been divided, with number of trade unions having been vociferous in their calls for this added protection for agency workers and employer resistance equally strong."
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