New EU directive to hit employers in the pocket

© Ithica Publishing Services

If your business employs agency workers, a new EU jobs directive is set to increase your staffing costs by thousands of pounds per year.

The directive, which gives agency workers the same rights as full-time employees, will cost UK businesses almost £2bn every year.

It will see the wage bill of large businesses increase by an average of £73,000 per year – leading to fears that major employers may be forced to cut jobs. A further threat to the British recovery, as if one were needed.

It’s not just major organisations that will suffer though. Many smaller businesses rely on agency workers to swell the ranks, and these firms too will have to find an extra £2,500 per year on average.

The law entitles agency workers to the same pay, holiday and maternity leave as their full-time counterparts once they have worked for more than 12 weeks. It was approved by the Coalition government some time ago, but is only now coming into force (September).

While many have criticised the law’s approval by Government, it seems to have been forced by the prospect of ‘equal rights’ legal challenges from agency workers.

This entry was posted in UK Economy and tagged , , .

Leave a Reply