Recent economic surveys have revealed that the use by British industry of temps – individuals working for end user customers and supplied by employment businesses – is undoubtedly increasing and making a contribution to the nation’s economic growth. At present an estimated 1.5 million temp placements are made a year, and the value of such supplies is probably in the region of £25 billion per annum.

Many reasons are cited for this apparent growth, including the fact that many workers distinctly prefer working on short-term placements, and certain “in demand” skills are only available on a temporary basis. Because of the erosion in value of long term benefits such as pensions provided by employers to employees, being employed permanently is no longer as attractive a proposition to a worker who may be able to make his or her own pension arrangements.

From the perspective of the end user business, it is often more economic to hire temps from employment businesses than to increase headcount. Many tasks and jobs, including those using specialist skills, can be done on a short term or seasonal basis, and do not necessarily require a permanent appointment. As a considerable bonus, a number of the key legal protections in the field of work (such as the right to claim unfair dismissal) apply only to employees, with the result that temps who have no direct contract of employment with the end user business will fall outside their scope. This makes the process of firing a temp quicker, cheaper and less risky than getting rid of a permanent worker.

The trade union movement has very firm views about the need to extend the protection of employment law to people who provide their services personally but on a temporary basis, such as temps, and it is no surprise that the TUC was disappointed to learn that there is to be further delay before the Temporary (Agency) Workers Directive is enacted in domestic law.

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