Agency worker slides

Secret agents

Lindsay Judge

December 2016

@resfoundation

Agency workers in the new world of work

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• Definitions• Scale of agency worker use in the UK

today• The what, where and who of agency

work • Pay and working life • Future research

Beginning of an 18 month investigation into agency work – today will cover…

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DEFINITIONS

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What is an agency worker?

Worker

Workplace firm

Agency

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What is an agency worker?

Worker

Workplace firm

Agency

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What is an agency worker?

Worker

Workplace firm

Agency

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Employment rights of agency workers

Employment status NLW/

NMWHoliday pay

No unlawful deduction

Maternity paternity adoption

Sick pay

Unfair dismissal

Non-discrimination

Employee

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Employment rights of agency workers

Employment status NLW/

NMWHoliday pay

No unlawful deduction

Maternity paternity adoption

Sick pay

Unfair dismissal

Non-discrimination

Employee

Worker May qualify for SMP

May qualify for SSP

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Employment rights of agency workers

Employment status NLW/

NMWHoliday pay

No unlawful deduction

Maternity paternity adoption

Sick pay

Unfair dismissal

Non-discrimination

Employee

Worker May qualify for SMP

May qualify for SSP

Self-employed

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Employment rights of agency workers

Employment status NLW/

NMWHoliday pay

No unlawful deduction

Maternity paternity adoption

Sick pay

Unfair dismissal

Non-discrimination

Employee

Worker May qualify for SMP

May qualify for SSP

Self-employed

Agency worker regulations (2010) Equal pay

Equal holiday

pay

Equal holiday allowa

nce

Antenatal

appoint-

mentsAfter 12 weeks continuous service

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Employment rights of agency workers

Employment status NLW/

NMWHoliday pay

No unlawful deduction

Maternity paternity adoption

Sick pay

Unfair dismissal

Non-discrimination

Employee

Worker May qualify for SMP

May qualify for SSP

Self-employed

Agency worker regulations (2010) Equal pay

Equal holiday

pay

Equal holiday allowa

nce

Antenatal

appoint-

mentsAfter 12 weeks continuous service Or pay-between-assignment contract

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HOW MANY AGENCY WORKERS ARE THERE IN

THE UK?

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There are 340,000 temporary agency workers in the UK today

Temporary agency workers: UK

Source: RF analysis of ONS, Labour Force Survey

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We uncover a further 440,000 permanent agency workers

Temporary and permanent agency workers: UK

Source: RF analysis of ONS, Labour Force Survey

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A mysterious 66,000 agency workers say they are paid by an agency and do not administer their tax/NI

Workers paid by an agency, by tax and NI status: UK

Source: RF analysis of ONS, Labour Force Survey

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Putting it all together, we estimate there are 865,000 agency workers in the UK today

All agency workers: UK

Source: RF analysis of ONS, Labour Force Survey

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WHAT, WHERE, WHO?

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Agency workers are found in high- and low-value sectors – and the public sector too

Share of agency workers in industries: UK

Source: RF analysis of ONS, Labour Force Survey

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There are some agency worker hotspots – but regional variation is not that stark

Share of agency workers in regions: UK

Source: RF analysis of ONS, Labour Force Survey

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Agency work is strongly biased towards lower occupational roles

Share of agency workers in occupational groups: UK

Source: RF analysis of ONS, Labour Force Survey

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8 per cent of Black/African/Caribbean workers are agency workers

Share of agency workers in ethnic groups: UK

Source: RF analysis of ONS, Labour Force Survey

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1 in 10 of the EU Accession/ Eastern Europe-born workforce is an agency worker

Share of agency workers in occupational groups: UK

Source: RF analysis of ONS, Labour Force Survey

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PAY AND CONDITIONS

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• Agency workers have a raw pay differential of £2.57/hour but…

• … Controlling for personal characteristics and type of jobs of agency workers, the pay penalty reduces to 22p/hour

• Equivalent to £430 a year for a full time worker

Is there a pay penalty attached to agency work?

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Most agency workers are full-time – with a third of part-timers unable to find a full-time job

Working patterns of agency workers: UK, 2014-2016

Source: RF analysis of ONS, Labour Force Survey

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Agency workers have short periods employment but more than 1 in 3 has worked in same role for 2+ years

Length of continuous employment for agency workers: UK 2014-2016

Source: RF analysis of ONS, Labour Force Survey

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Temporary work is a second best option for many

Reasons for working temporarily, temporary agency workers only: UK 2013-2016

Source: RF analysis of ONS, Labour Force Survey

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• We need to know more about agency workers – Who are the permanent group? Self-

employed? – What are their motivations? – How does agency work fit into their

overall working life? • Why do firms use agency workers?

What do agencies offer workers and firms alike?

• Role of policy

The future

Secret agents

Lindsay Judge

December 2016

@resfoundation

Agency workers in the new world of work