Balancing Protection and Practicality: Proposals to Reform the Temporary Labour Market

Temporary labour markets are a crucial economic lifeline for many sectors, from manufacturing and transport to health and hospitality. They offer agility, raise productivity and help organisations respond to demand fluctuations. But they also raise important questions about worker protections, fair treatment and the reliability of labour arrangements. As policymakers consider the next steps, there is growing momentum around a set of proposals aimed at strengthening protections for workers while minimising unnecessary burdens on employers. This draft blog post outlines the rationale behind those proposals, what they seek to achieve and how stakeholders can engage with the process.

Why reform the framework now?

The current framework governing temporary labour arrangements exists to facilitate flexibility and rapid deployment of labour where needed. Yet the rapid growth of agency work, contractor roles and other forms of temporary employment has highlighted gaps in protection, clarity around responsibility, and inconsistent enforcement. Workers can face ambiguity about rights, owed pay, holiday entitlements and access to support, while businesses occasionally bear disproportionate compliance costs or face duplication of processes across agencies and end clients.

The overarching aim of the proposed reforms is straightforward: raise baseline protections for temporary workers, enhance clarity about who is responsible for worker rights at each stage of the chain, and simplify compliance so that employers can operate legally and efficiently. The policies are designed to be proportionate—targeting higher-risk scenarios and ensuring that compliant businesses are not unduly burdened.

What the proposals cover

– Clarifying employer responsibilities across the supply chain
– Strengthen the obligation of the primary end user or client to ensure fair treatment of temporary workers engaged through agencies or third parties.
– Establish clear delineation of duties between recruitment agencies, employment intermediaries and end users to reduce confusion and misclassification.
– Introduce shared accountability mechanisms that incentivise proper onboarding, accurate timekeeping and transparent pay practices.

– Extending core rights and protections
– Guarantee equal access to basic employment rights for temporary workers, including fair pay for comparable work, access to rest breaks, holiday entitlement and protection against unlawful deductions.
– Promote transparency around assignment duration, rates, and terms of engagement to help workers make informed decisions.

– Streamlining registration, reporting and compliance
– Create streamlined registration for agencies and intermediaries, with a single, digital reporting point to reduce duplicative paperwork.
– Standardise key contractual elements and documentation to make compliance straightforward for businesses of varying sizes.
– Move toward outcome-based reporting where possible, focusing on results such as timely pay and adherence to statutory rights rather than box-ticking processes.

– Strengthening enforcement and redress
– Allocate targeted resources to enforcement in high-risk sectors, with a clear framework for penalties and remediation.
– Improve access to redress for temporary workers, including easier pathways to raise concerns and receive timely resolutions.
– Support independent advisory services to help workers understand their rights and navigate complaints.

– Supporting a fair transition for business
– Introduce phased implementation and transitional provisions to allow businesses time to adjust, particularly SMEs.
– Offer guidance and best-practice templates to help organisations implement compliant and ethical temporary labour practices.
– Provide cost-effective tools, such as model contracts and standardised pay calendars, to reduce administrative burden.

– Monitoring, evaluation and ongoing improvement
– Establish clear success metrics (see below) and publish regular progress reports.
– Create a mechanism for review and iterative improvement based on stakeholder feedback and empirical evidence.
– Encourage ongoing dialogue with worker representatives, industry bodies and unions to ensure policies stay relevant.

Principles underpinning the reform

– Proportionality: measures should be proportionate to the risk profile of the sector and the size of the business, avoiding unnecessary burdens for compliant organisations.
– Clarity: duties, rights and processes should be easy to understand, with accessible guidance and predictable timelines.
– Fairness: reforms should address power imbalances between workers, agencies and clients, ensuring fair treatment across temporary arrangements.
– Practicality: policies should be implementable with realistic timelines, minimal disruption to existing operations and clear, digital pathways.
– Evidence-based decision-making: regulatory changes should be guided by data, monitoring outcomes and stakeholder feedback.

What success looks like

– Stronger protection for temporary workers without compromising business flexibility.
– More consistent pay and working conditions across assignments, with fewer disputes about eligibility and entitlements.
– Clearer accountability for all parties in the supply chain, reducing misclassification and exploitation.
– A user-friendly compliance framework that is scalable for businesses of all sizes.
– Measurable improvements in worker satisfaction, retention and safety in temporary roles.
– Transparent assessment of costs and benefits, with ongoing opportunities to refine policies.

Potential challenges and considerations

– Balancing simplicity with comprehensive protection: the risk is over-burdening small businesses with complex requirements; the response is to prioritise core protections and provide scalable, pragmatic compliance tools.
– Enforcement capacity: effective reform depends on robust enforcement. This includes well-targeted inspections, accessible complaint channels and timely remedies.
– Sectoral variation: different sectors have unique dynamics; the framework should allow for sensible exemptions or tailored guidance where appropriate, while preserving baseline protections.
– Transition and cost: initial implementation costs should be managed with phased rollouts, guidance materials and the potential for subsidies or support where feasible to help businesses adapt.

Engagement and next steps

The proposals are designed to invite constructive views from a wide range of stakeholders, including workers, unions, employers, recruitment agencies and professional bodies. Feedback will help determine priorities, refine the approach and shape the final policy package. Readers are encouraged to engage through the official consultation channels, share practical experiences, and suggest concrete changes or new ideas.

In particular, constructive comments might address:
– Which protections should be universal for temporary workers, and where should there be sector-specific adaptations?
– How can duties be allocated most fairly across the supply chain without duplicating effort?
– What digital tools or templates would most ease compliant practice for small businesses?
– What metrics would best capture improvements in worker welfare and business efficiency?
– What transitional supports would be most helpful for organisations adjusting to new requirements?

Concluding thoughts

Reforming the framework governing the temporary labour market holds the promise of safer, fairer conditions for workers while preserving the agility and innovation that employers rely on. By focusing on clear responsibilities, practical protections and streamlined processes, the regime can deliver tangible benefits for people and businesses alike. The forthcoming consultation offers a timely opportunity to shape a system that is both principled and practical—one that recognises the essential role of temporary labour while ensuring that workers are treated with dignity and respect.

If you have insights or experiences to share, please participate in the consultation and join the conversation. Your input can help crafts a policy that supports a resilient, productive economy and a fairer labour market for all.

February 06, 2026 at 12:00PM
让工作有回报：现代化的代理用工监管框架

我们正在征求对改进规范临时劳动力市场框架的提案的意见，以在更好地保护工人的同时，尽量减少对企业的负担。

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