22/08/2002

ACCA warn EU directive could lead to unemployment spiral

The Association of Chartered Certified Accountants (ACCA) has warned that an new EU directive – the Agency Workers Directive (AWD) – could result in increased unemployment if it is adopted in the UK.

The AWD is intended to give temporary staff the same pay and benefits as permanent employees if they stay more than six weeks with an organisation. However, the ACCA is concerned that the directive could cost employment agencies and employers millions of pounds a year and deter organisations from hiring either permanent or temporary staff.

John Davies, Head of Business Law at ACCA, said: “It is possible that the Directive could have unintentional adverse consequences. In order to cut costs, firms may start employing workers on a temporary basis only. This could lead to a situation where either everyone will be on temporary contracts or there are no temporary workers at all.

He added: "This would not be good news for flexibility in the labour market. It is important that all employees’ rights are protected, but, in its current form, the proposed Directive does not achieve that.”

(KmcA)

Related Northern Ireland Business News Stories
Click here for the latest headlines.

22 March 2002
CIPD criticises 'impractical' agency work directive
The Chartered Institute of Personnel and Development (CIPD) has criticised the latest draft EU directive on agency workers as being "unnecessary and impractical". The draft of the directive, which was published on Wednesday 20 March, reveals that Europe has seen a steady increase in the amount of temporary work over the past decade.
03 October 2011
Search Giant Creates 230 Irish Jobs
An investment from an Internet search giant will create 230 jobs in Dublin, it has been announced. In what is being hailed as a significant boost Google has announced plans to invest €75m into a new data centre in the capital, creating 30 permanent jobs and 200 temporary jobs.
24 August 2001
TUC calls for three more bank holidays a year
The Trades Union Congress (TUC) has called on the British government to review bank holiday entitlement and to give British workers an extra three days every year.
22 January 2002
ACCA highlights illegal insistence on sick notes
The Association of Chartered Certified Accountants (ACCA) has issued a warning that companies who insist on receiving sick notes from employees absent from work due to minor ailments are actually breaking the law.
05 June 2006
Businesses fail to make best use of temps
UK Businesses are failing to make the most of their temporary workers according to a survey by a recruitment consultancy. A worrying 88% of temporary workers claim their skills are not being fully used by employers, 34% feel they are not at all stretched in their work and only 17% of respondents are learning new skills.