Agency Workers: The ticking bomb for Recruitment Agencies

Most agencies sources of income comes from a combination of

1. The difference between the rate charged to clients and the rate paid to workers plus all the social costs of employment
2. By having long term temps working with the same client on an ongoing rolling basis
3. The fees generated by temp to perm moves by successful candidates as recompense for no upfront recruitment charges.
4. Recruitment charges for direct placements.

The first three of these areas are under attack.

The Directive, Article 6(2) requires that:

" Member states shall take any action required to ensure that any clause prohibiting or having the effect of preventing the conclusion of a contract of employment or an employment relationship between the user undertaking and the agency worker after his/her assignment are null and void or may be declared null and void" 

but it goes on to say under Article 6.3 requires that:

" Temporary work agencies shall not charge workers any fees in exchange for arranging for them to be recruited by a user undertaking or for concluding a contract of employment or an employment relationship with a user undertaking after carrying out an assignment in that undertaking" 

Again how is this to be interpreted? What will it do to existing documentation and relationships?

Frankly all the balls have been thrown into the air but until the guidance notes are issued nobody know but it is clearly a fundamental change for the Recruitment industry and many a blissfully unaware of the potential consequences.