THE second half of 2011 looks likely to be a period of “calm before the storm” when it comes to employment law legislation.

However, there will be some changes come October which could impact significantly on SMEs, such as the Agency Worker Regulations 2010, which will provide a significant extension to the employment rights of agency workers.

After October, temps will be entitled to certain benefits from their very first day – after working for 12 weeks – equal to permanent staff, such as access to the staff canteen, crèche, and car parking. The implications are far-reaching if SMEs do not keep their office in order.

Avoid the fine

Non-compliance carries a penalty of £5,000 and temps can bring employment tribunal claims for breaches where compensation payable is unlimited.

Be proactive

Share information with the agency regarding your staff’s working and employment conditions. Agencies may need to educate their clients as to what information is required.

Know the rules

Many temps sign up to more than one agency, and hirers should be aware that the 12-week period will be accrued if the temp is supplied to them by more than one agency (as long as they perform the same role).

Do your research

Companies must carry out a health and safety risk assessment for pregnant temps and inform the agency if they are no longer able to carry out the original assignment. The agency must then look for suitable alternative work and, if none can be found, pay the temp until the end of the assignment.

Don’t get caught out

Businesses which use large numbers of temps may wish to ask the agency to consider a “derogation contract”, between the temp and the agency. Provided specific conditions are met, the temp will then not be entitled to the same pay from the hirer as permanent staff.

What should you do?

For now, companies should review which temps are likely to work on assignments longer than 12 weeks and review the information they are required to share with the agency.

James Wilders is an employment expert in the specialist SME service, Kudos, at Dickinson Dees.