- Anna Scott
A row is brewing over claims that some recruitment agencies are selling accident insurance to temporary workers – which they are not licensed to do.
The BBC Today Programme reported last week that there is “widespread selling” of the insurance by agencies to such workers, which has led the Financial Conduct Authority (FCA) to investigate.
The Trades Union Congress (TUC) has claimed that the practice is unnecessary and a “rip off”.
But Kevin Green, CEO of the REC, says the matter has been “completely misrepresented” by the TUC, highlighting that recruiters are “making explicitly clear” that they are not selling the policies to workers and are following guidance given by the FCA.
Recruiters can make their temporary workers aware of insurance products that may be appropriate to them – such as for accidents at work – and the workers can then make their own decision about whether or not to buy them.
Green has pointed out that many trade unions also offer personal accident cover to their members in the same way that recruiters do.
When the Agency Workers Regulations were introduced in 2011, there was some confusion about whether employers would be liable for any accidents temporary workers had at work, or whether that would be agencies’ responsibility.
This backdrop of confusion appears to remain both within and outside the agency sector, and some clarification would no doubt be welcome.
Agencies play a vital role in explaining to temporary workers what their rights are. Many workers would have no idea otherwise.
However, this comes in a long line of stories in which recruitment agencies’ practices are under increased scrutiny, leading the sector to defend itself. The FCA’s investigation, once revealed, should provide a much clearer picture of whether this practice is actually widespread, and how the situation can be resolved to ensure agencies are still able to inform their agency staff of their rights.