‘Chaos’ over agency worker directive

THE Government’s failure to legislate for the introduction of an EU directive which requires pay parity between agency and permanent workers from next Monday has created chaos, according to employers, recruitment agencies and unions.

The Government last night wrote to employers’ bodies to tell them that as of December 5, the country’s 35,000 agency workers must get the same basic pay; piece rates; and shift, overtime, unsociable hours and Sunday premiums as would apply to full-time employees.

“Hirers and agencies should make the appropriate arrangements to ensure that the principles of equal treatment as indicated above are put in place from December 5 for all temporary agency workers, including those who are assigned on or after December 5,” employers were told.

Employers will not be expected to provide equality on occupational pension schemes, financial participation, sick pay, benefit in kind or bonus payments.

Richard Eardley, managing director of Hays recruitment agency, said that up to last night they had no idea when employer liability in relation to agency workers would begin to accrue.

Frank Collins of the National Recruitment Federation said: “Purely for the agencies themselves we are looking at job losses and certainly financial losses. From an agency worker perspective, until we know what the legislation is it is quite possible many will lose their jobs.”

The Irish Nurses and Midwives Organisation said it will lodge pay claims for agency nurses from next week.

The HSE has spent €63.4 million on agency staff in 2010 and €49.7m this year. Earlier this year, it negotiated downwards the rates it pays agency nurses.

Catherine Kennedy, managing director of Nurse on Call, the sole supplier of agency nurses to the HSE, said the requirement will counter the reduction.

Ms Kennedy said it was “shocking” the Government had let it go down to the wire, and then failed in trying to negotiate a derogation with the social partners that would have allowed for a qualifying period.

However, Jobs Minister Richard Bruton’s office said he had wanted to provide the unions and employers with “all possible opportunity” to reach a deal on the derogation given that it will “potentially have an impact on employment”.

A spokesman added that Mr Bruton believed a derogation would have been better for employment.

Meanwhile, the HSE has confirmed it has backtracked on plans to withhold expenses owed to staff until next year. Expenses will be paid on time this month.