Agency Workers rights. Any Employment lawyers out there?
Discussion
I work in the Automotive Trade as a contractor - not all PH'ers are High paid IT consultants. About 75% of the workforce are employed through an Agency, they are the ones who hire and fire us, although we all 'say' we work for XYZ Ltd. Now I was recently chatting to a friend who is a director for a large company (in the food industry as it happens) and I was moaning about not having paid holidays, paid bank holidays etc, and he was amazed that we do not get them. His company employs workers through an agency and they have to, by law, pay their agency workers for Bank holidays, and also pay them for annual holidays.. He cited the Agency Workers Regulation Act 2010, which states that Agency workers are entitled to much the same rights as full time employees.
If any of us mentioned this to the agency we would find ourselves 'stood down' (as they call 'sacking'). I have googled this topic and everything seems to point to the conclusion that the agency is in fact breaking the law, by not paying us. Is there any one out there who knows the true facts? It seems incredible to me that a large employment agency is able to flout the law, but that appears to be the case.
If any of us mentioned this to the agency we would find ourselves 'stood down' (as they call 'sacking'). I have googled this topic and everything seems to point to the conclusion that the agency is in fact breaking the law, by not paying us. Is there any one out there who knows the true facts? It seems incredible to me that a large employment agency is able to flout the law, but that appears to be the case.
Thanks for the replies, but let me clarify.
The Agency workers act - as it has been explained to me - is designed to give Agency workers very similar rights to full time employees. If the Agency pays me £15 an hour, but in order to 'pay' me when I go on holiday, they deduct £2 an hour and use that to fund my holiday, then in effect I am paying for my own holiday aren't I? It is not a paid holiday.
The Act is designed to prevent Employers exploiting Employees by recruiting Agency workers so they can avoid paying holiday pay, and bank holiday pay. (Read the Act, it states that Agency workers should have basically the same rights as full time employees - apart from hiring and firing at will with no notice given).
The Agency recruits us, but we are paid by, and technically employed by, another company Some of us have formed either limited companies, or gone the Sole trader route to minimise our tax liabilities. But for the rest of us, even if we are technically employed by another company, then it is THAT company that should be paying us hour holiday pay. It is THAT company that should issue an invoice to the company that is using Agency workers, stating 'Here's the invoice for Fred Smith, he's on holiday this week, but you have to pay him to comply with the law'
It's all a big fiddle as far as I can see. I worked for another agency when the act came into force, our hourly rate remained the same, and we all started to receive holiday pay.
I really need someone who understands the law, to explain the situation. Many thanks.
The Agency workers act - as it has been explained to me - is designed to give Agency workers very similar rights to full time employees. If the Agency pays me £15 an hour, but in order to 'pay' me when I go on holiday, they deduct £2 an hour and use that to fund my holiday, then in effect I am paying for my own holiday aren't I? It is not a paid holiday.
The Act is designed to prevent Employers exploiting Employees by recruiting Agency workers so they can avoid paying holiday pay, and bank holiday pay. (Read the Act, it states that Agency workers should have basically the same rights as full time employees - apart from hiring and firing at will with no notice given).
The Agency recruits us, but we are paid by, and technically employed by, another company Some of us have formed either limited companies, or gone the Sole trader route to minimise our tax liabilities. But for the rest of us, even if we are technically employed by another company, then it is THAT company that should be paying us hour holiday pay. It is THAT company that should issue an invoice to the company that is using Agency workers, stating 'Here's the invoice for Fred Smith, he's on holiday this week, but you have to pay him to comply with the law'
It's all a big fiddle as far as I can see. I worked for another agency when the act came into force, our hourly rate remained the same, and we all started to receive holiday pay.
I really need someone who understands the law, to explain the situation. Many thanks.
Zeeky - we are all temporary, but some of us have been there for 4 years, I've been there for over a year.
H22observer - some have gone the self-employed/sole trade/limited company route purely to save money on tax.
The point is that the Act was designed to ensure that temporary workers who worked longer than 12 weeks received the same rights as full time employees.
https://www.gov.uk/agency-workers-your-rights
I need a specialist in this area to give me some advice and to tell me how the Agency is able to circumvent the law. As I stated previously, when I was working for a different an
Bench when the Act came into effect, we were all called into a meeting and informed that under the act we were now all entitled to paid holidays, and we were paid for bank holidays. The Agency we now work for is flouting the law, how are they able to do it?
H22observer - some have gone the self-employed/sole trade/limited company route purely to save money on tax.
The point is that the Act was designed to ensure that temporary workers who worked longer than 12 weeks received the same rights as full time employees.
https://www.gov.uk/agency-workers-your-rights
I need a specialist in this area to give me some advice and to tell me how the Agency is able to circumvent the law. As I stated previously, when I was working for a different an
Bench when the Act came into effect, we were all called into a meeting and informed that under the act we were now all entitled to paid holidays, and we were paid for bank holidays. The Agency we now work for is flouting the law, how are they able to do it?
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