Temp numbers drop after EU ruling

Figures have shown temporary job placements have fallen 18% over the past year, with experts suggesting many firms may be choosing not to take on temps because of the new employment rules for companies and agencies.

The changes, which come from European law, mean that temps are entitled to the same pay rates and benefits as permanent employees after just 12 weeks in the job, rather than a year. During March the number of people placed in short-term jobs fell at the fastest rate for two and a half years – dropping to 48.5 from 49 the previous month, research from the Recruitment and Employment Confederation (REC) and KPMG revealed.

The figure was down nearly a tenth on October, when the new rules were introduced. Tom Hadley, policy director at the REC, said the drop in the hiring of temporary staff "may, in part, be linked to employer uncertainty over the agency worker regulations”.

The changes were put in place to protect temporary workers from being employed on long-term contracts yet not receiving as much pay as co-workers doing the same job on permanent deals. Fears over the future of temp hires were further fuelled by a Government study which estimated it would cost firms nearly £2 billion a year to put the rules into effect.

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