With thousands of temporary jobs created over the Christmas period, Stockport law firm Gorvins is urging businesses to consider the legal implications of employing temporary workers and the effect they can have on permanent staff.
In some markets the competition to attract temporary workers has led to employers offering good rates, benefits and even bonuses to attract the right talent over the festive period.
But a situation is developing in some parts of the market whereby some temporary workers may in fact be better off than their permanently employed counterparts as they receive better pay and benefits for the period of time they are contracted by an employer.
Emma Harvey, Partner at Gorvins Solicitors and an employment law specialist, said:
“Agency Workers Regulations already give rights to temporary agency workers employed through a recruitment agency, which in certain circumstances means that they are entitled to receive the same pay and certain benefits as their counterparts on permanent contracts.
“This may create problems within the existing workforce with the creation of a two tier system. Permanent staff may view the engagement of temporary workers negatively; perceiving that there is an unfairness in relation to pay rates and benefits or that they are losing out on the chance to work overtime themselves
Pros and cons of using a temporary workforce alongside a permanent one need to be balanced.
Pros of temporary workers are the flexibility they provide to UK plc, enabling businesses to deal with busy periods or specific campaigns. They also enable businesses to ‘try before they buy’ i.e. using temporary workers with a view to making them permanent if they perform well.
Some businesses find that the temporary workforce can outperform permanent staff; the transitory nature of temp work means temporary workers are less affected by office politics or bad management and may be more ‘engaged’ than the permanent workforce. Their desire to obtain an extended contract/assignment or be made permanent means they can end up outperforming permanent staff.
Cons are that temporary workers may be harder to motivate if they cannot see a long term goal and there’s a lack of job stability. It is not always financially worthwhile for an employer if it spends time and money training up temporary workers and then loses those skills at the end of the assignment
Emma Harvey again: “Successful management and integration of temporary and permanent workers, where possible, will help to avoid a two-tier culture. The key is to ensure that all workers have job satisfaction whatever their employment status.
“Inconsistencies in the terms need to be addressed. If they appear to disadvantage the existing permanent workforce, it may explain why the existing workforce is demotivated or underperforming.”