Agency Workers Directive
Encyclopedia
The EU Temporary and Agency Workers Directive (2008/104/EC) is an EU Directive agreed in November 2008 which seeks to guarantee those working through employment agencies equal pay and conditions with employees in the same business who do the same work. It is the third piece of legislation in the European Union
's employment law package to protect atypical working (the others being for part-time workers and fixed-term workers). Though it was proposed in 2002, the British, German, Danish and Irish governments blocked its enactment until 2008.
However, Art. 5 (4) allows for Member States to derogate from the principle of equal treatment, provided an 'adequate level of protection is provided'. This could be in the form of a qualifying period, before which agency workers would not be entitled to equal treatment. The directive made changes to national law in any further employment rights since Article 2 now designates employment agencies as the employer. This is unproblematic for most countries, which guarantee substantive rights to all people at work.
the law across the common market. The economic function this serves is to prevent unfair competition between different member states. Sometimes called social dumping
, the idea is that, for example, if Finland has loose employment protection and Ireland has strong employment protection, companies will shift their operations to the Finland - not because Finland is a more efficient
country to do business and Ireland is inefficient - just because they can pay less. Harmonised laws prevent a "race to the bottom
" where every country tries to deregulate to attract business, and, theoretically, all end up losing. The social function is to ensure a higher standard of living and quality of life, consistent with the aims of the Treaty of the European Union.
. According to newspaper reports, the UK got the backing of Germany to torpedo the draft Directive in return for the UK to help sink the Takeover Directive (Germany has comprehensive agency work regulation under its Arbeitnehmerüberlassungsgesetz and its Civil Code
, esp §622, and the UK has strong Takeover Regulation, especially Rule 21 of the City Code).
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
's employment law package to protect atypical working (the others being for part-time workers and fixed-term workers). Though it was proposed in 2002, the British, German, Danish and Irish governments blocked its enactment until 2008.
Provisions
The core of the directive is equal rights on "basic working and employment conditions". Under Art.3(1)(f) These conditions are pay, and- the duration of working time, rest periods, night work, paid holidays and public holidays
- work done by pregnant women and nursing mothers, children and young people
- action taken to combat discrimination on the grounds of sex, race or ethnic origin, religion or beliefs, disabilities, age or sexual orientation.
However, Art. 5 (4) allows for Member States to derogate from the principle of equal treatment, provided an 'adequate level of protection is provided'. This could be in the form of a qualifying period, before which agency workers would not be entitled to equal treatment. The directive made changes to national law in any further employment rights since Article 2 now designates employment agencies as the employer. This is unproblematic for most countries, which guarantee substantive rights to all people at work.
Purpose
As with all EU Directives, the purpose of the Agency Worker Directive is to harmoniseHarmonisation
Harmonisation may refer to:* In music, the implementation of harmony, usually by using chords, including harmonized scales* Harmonisation of law, the process of establishing common laws and standards across the European Union...
the law across the common market. The economic function this serves is to prevent unfair competition between different member states. Sometimes called social dumping
Social dumping
"Social dumping" is a term that is used to describe a temporary or transitory movement of labour, whereby employers use workers from one country or area in another country or area where the cost of labour is usually more expensive, thus saving money and potentially increasing profit.It was also...
, the idea is that, for example, if Finland has loose employment protection and Ireland has strong employment protection, companies will shift their operations to the Finland - not because Finland is a more efficient
Efficient
Efficient may refer to:* Efficiency, the extent to which time or effort is well used for the intended task or purpose* Efficient , a Thoroughbred racehorse...
country to do business and Ireland is inefficient - just because they can pay less. Harmonised laws prevent a "race to the bottom
Race to the bottom
A race to the bottom is a socio-economic concept that is argued to occur between countries as an outcome of regulatory competition, progressive taxation policies and social welfare spending...
" where every country tries to deregulate to attract business, and, theoretically, all end up losing. The social function is to ensure a higher standard of living and quality of life, consistent with the aims of the Treaty of the European Union.
Background
The original proposal for a directive was made in 2002, but was itself shelved, because of the UK government's consistent opposition to agency regulation, in the interests of labour market flexibilityLabour market flexibility
Labour market flexibility refers to the speed with which labour markets adapt to fluctuations and changes in society, the economy or production.-Definition:In the past, the most common definition of labour market flexibility was the neo-liberal definition...
. According to newspaper reports, the UK got the backing of Germany to torpedo the draft Directive in return for the UK to help sink the Takeover Directive (Germany has comprehensive agency work regulation under its Arbeitnehmerüberlassungsgesetz and its Civil Code
Bürgerliches Gesetzbuch
The Bürgerliches Gesetzbuch is the civil code of Germany. In development since 1881, it became effective on January 1, 1900, and was considered a massive and groundbreaking project....
, esp §622, and the UK has strong Takeover Regulation, especially Rule 21 of the City Code).
External links
- Full text of the proposed Directive (COD 2002/0149) with introductory text laying out its aims.
- Full .pdf text of the implemented Directive (2008/104/EC)
- Agency Workers Regulations 2010, implementing the Directive in UK labour law