Pictured: Vicki Kelly, Director of TRS Personnel

A Midlands recruitment company today moved to dispel 'scaremongering' by industry organisations over new European laws being introduced for temporary workers in the UK.

A report from the CBI this month said the new Agency Workers Directive which comes into force on October 1 could cost hundreds of thousands of British jobs, threatening a fragile recovering economy.

But TRS Personnel, which has offices in Staffordshire, Shropshire and Wolverhampton, welcomed the new regulations, which give temporary workers the same pay and benefits as permanent staff after 12 weeks in a job, saying companies had nothing to fear.

Director Vicki Kelly said: "We're finding that many companies are worried about the impact of the AWD because they don't have enough knowledge of the legislation. There is some scaremongering by industry bodies which believe up to a third of employers will avoid the new rules by ending contracts in their eleventh week.

"But companies should be assured that recruitment companies which supply agency workers are aware of the legislation and do have the knowledge to assist them. Employers don't need to worry, they can still use temporary workers and we can help dispel the fears of businesses and advise on the best way forward."

The AWD also covers next year's reform to the pensions system, when all employers will have to automatically enrol their staff onto a workplace scheme. After the qualifying 12-week period, agency workers would also be entitled to receive pension contributions from their employer. 

"We believe the AWD is good for both businesses and employees giving workers who are doing the same job equal pay. Also, many temporary contracts are often for less than 12 weeks, so we think far fewer companies will actually be affected than bodies like the CBI are predicting," said Miss Kelly. 

Her comments came as the Recruitment and Employment Federation, while   highlighting some of the complexities of the AWD, said the impact of the new rules would be 'limited' in many industries.

Kevin Green, the REC's chief executive said: "In most sectors, the impact will be limited and recruiters are already working with their clients to make new equal treatment measures work."

Miss Kelly added: "As Mr Green has said, recruiters are fully geared up to help employers get to grips with the necessary changes. We'd be delighted to speak to any companies which are concerned about the introduction of the regulations and how they will work.

"We have already spoken with our clients and with staff to ensure that flexible staffing arrangements continue to provide a crucial outlet for employers and job-seekers."

TRS Personnel can be contacted on 0844 8808 250.