An organisation that represents agencies employing interim managers and other temporary workers has told the Government to think long and hard before introducing measures which could damage the flexibility of the UK labour market.
The Recruitment and Employment Confederation (REC) has serious reservations about how the Pensions Act 2008 will work for people engaged on short-term assignments such as interim managers and contractors.
The Pensions Act 2008 means that from 2012, all workers will be auto-enrolled into a qualifying pension scheme with the option of opting out after the initial enrolment.
In a written response to Department for Work and Pensions, the REC has said that it has serious reservations about the effect that a high number of workers opting out of the scheme will have on recruitment agencies and employers.
Anne Fairweather, the REC's Head of Public Policy, said the Government must recognise that many workers on short term assignments will want to opt out of the pensions scheme for very good reasons.
Under the current proposals, agency workers will have to opt out every single time they move to a different recruitment agency, a nuisance for the worker and the employer alike.
She went on to say the legislation risks placing a serious administrative burden on recruitment companies who in many cases will have to refund the worker the contributions they have made so far.
The REC has also put forward its own recommendations and these can be viewed at http://www.rec.uk.com/press/news/677.