North West Hoteliers – Agency Workers

Agency Workers Regulations are coming into force in October 2011. This is still a way off, but if you use agency workers, there is some planning ahead to be done.

The new regulations give agency workers equal rights to their employed colleagues after just 12 weeks in a given job. This means that they will be entitled to the same pay, holidays, overtime etc as permanent staff members. This could increase your employment costs considerably.

Let’s look at this in some more detail…….

Who is an agency worker?

If you use people from a work agency to work in your hotel on a temporary basis, they are classed as agency workers

Who is not an agency worker?

People you use who have their own businesses i.e. self-employed or working via their own limited company.

What is the 12 week rule?

An agency worker must work continuously for 12 weeks i.e. in the same position with the same hirer. A new period would only start if a new position was given that was substantially different or there was a 6 week break between jobs for any given hirer.

What will they be entitled to after 12 weeks?

• Pay
• Overtime
• Bonuses
• Holidays
• Shift allowances
• Luncheon vouchers

How does this affect you?

If the new rules are not met, it is the work agency that is initially in trouble, BUT if they can defend this then any liability may come to rest with you. Any worker who has not been treated correctly may be awarded compensation which could be as much as £5,000.

What should you be thinking about over the next 12 months or so?

• Should you be using agency workers
• Tightening of record keeping to keep an eye on the length of service for agency workers
• Possible changes to other working practices/conditions

At Ashworth Treasure Accountants, we work with many hotels, providing general business advice and information such as this, as well as providing hoteliers with tax advice and advice on buying and selling hotels.