Employment Law: Rights of Agency Workers and Labour Law

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A.H – Employment Law: Rights of Agency Workers and Labour Law

In this question I will analyze whether Iqbal is an employee of Ajax or if he is an agency worker. This is an important factor from the point of view of employment protection rights and tax provisions.  So firstly I will discuss agency workers.

An employer may turn to an agency to provide him with staff for a specific purpose or definite or indefinite period of time. It seems Secretarial Services Ltd falls into the group of those who provide temporary staff or contract workers usually engaged by the agency and supplied to a third party, this seem to be relevant to Iqbal’s case.

The area of supply of labour by an employment agency is covered by the Employment Agencies and Employment Business Regulations 2003 and these set out the minimum standards. The position of an agency worker and whether he is employed or not has consistently been a difficult area. In the case of McMeehan v Secretary of State for Employment, whether an individual is an employee depends on the terms of the contractual agreement with the agency in light of the surrounding factual circumstances. It seems by looking at the contract Iqbal is controlled by Ajax namely Simone his line manager as he takes orders and follows them.

In Serco Limited v Blair and others, the EAT focused on the issue of control. Agency workers brought claims for unfair dismissal against the company hiring them. EAT held the workers were under the control of the company and carried out work at the company’s order and subject to disciplinary proceedings, the intervention of the agency prevented the necessary relationship between the client company and employee. In Iqbal’s case it seems that if the agency doesn’t intervene he could be classed as an employee. Mutuality of obligation would be important too as is right to control what the worker does and how he does it

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Length of time the worker has worked for the client and dealings between the parties, there is a possibility for an implied contractual relationship to have arisen. Iqbal has worked for Ajax for five years he must follow instructions and communications between the parties.

In Dacas v Brook Street Bureau (UK) ltd, the EAT upheld a decision of an employment tribunal that an agency worker operating through a personal service company is the employee of the end user company. This was appealed in Cable and Wireless v Muscat, where it was said that express terms in a contract between the agency and ...

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