Agency worker rules could see IT jobs moving offshore

Business leaders warn impending regulations will deter firms from employing temporary IT staff

The imposition of new regulations governing how firms employ agency workers could see more IT work going overseas, according to business leaders.

The Agency Workers Regulations come into force on 1 October, forcing firms that employ an agency worker for more than 12 weeks to offer the workers terms and conditions equivalent to the ones enjoyed by their permanent staff.

That could be problematic for IT chiefs, warned Make Emmott, an employment relations advisor at the Chartered Institute of Personnel and Development (CIPD), especially as agency IT workers may historically have been employed on long-term projects.

"Many large employers have already made changes to the way they recruit staff - and it's likely that they will have considered offshoring that work," said Emmott.

In others cases, firms want to encourage agency IT staff to set themselves up as independent contractors, who would then not be subject to the regulations, said Michael Sutherland, director of client services at employment firm ReThink Recruitment.

"If firms haven't prepared already, they could be in for a shock come Christmas - when the 12-week rule will first bite," said Sutherland.

Under the regulations, firms will need to share details of how they benchmark job roles and have a process in place to document that, explained Sutherland.

The need to share information about the terms and conditions offered to permanent staff with employment agencies is likely to deter some firms from using agency workers, said Emmott.