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Agencies Risk Increasing Penalties Under New Worker’s Rights

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Following the new legislation announced by the Department for Business, Energy and Industrial Strategy (BEIS) workers will receive a package of new rights as part of its Good Work Plan, published in response to the Matthew Taylor Review. However Ben Wardleworth, Director at VMS and agency back office specialist, Engage, points out these new reforms could cause major headaches for agency owners.

“With a host of new reforms to workplace rights – such as details of rights from a worker’s first day in a role, to their eligibility for paid sick leave – this is the largest upgrade in rights we’ve seen in a generation. However, this scale of change also means firms will need to prepare for the uptick in compliance and administration if they are to avoid swingeing penalties. For example, plans for a ‘key facts’ page will require agencies to work with others in the supply chain to collate information and create a clear breakdown of who pays a worker and any costs deducted from their wages. To do this, agencies will need to have visibility throughout the entire supply chain to ensure workers are paid correctly and on time.

“Agencies are now going to be even more in the spotlight with their management systems under heavy scrutiny, which means it is more crucial than ever that all information can be accessed and is in one place. I’d urge companies who haven’t already done so, to exercise due diligence or consult with us around their recruitment processes, looking at ways to tighten up and improve their admin systems if they are to avoid the penalties that will accompany these rights.”