Proposals to make it easier for companies to take on agency staff permanently have been announced by Stephen Byers, Secretary of State for Trade and Industry, following consultation on modernisation of employment agency regulation.

Companies, large and small, are sometimes deterred from taking temps on by the high transfer fees - "temp to perm" fees - some agencies charge. The new proposals would ensure that, if an agency wishes to charge a temp to perm fee, companies could agree an extension of the hiring period. At the end of that period, the company will be able to take the worker on permanently without paying a transfer fee. DTI will shortly be consulting on the detail of this proposal which was suggested by the industry and replaces those set out in the Government's original consultation document.

Mr Byers said: "Temp to perm arrangements are useful to workers and employers so I want to see more people able to find work in this way. Agencies have a legitimate commercial interest to protect, but excessive or 'surprise' agency transfer fees can prevent companies from taking people on permanently. In some cases, they result in temps ending up unemployed. Our new proposal will ensure a good balance of the needs of all concerned since best practice in the industry already is not to charge hirers a temp to perm fee after an agreed period of time."

Other elements of the package of revised standards will include clear responsibilities on agencies to ensure the suitability of the workers supplied, particularly those coming into contact with children or the vulnerable. Agencies will have to establish the suitability of the workers they supply, including checking a worker's identity, experience, training, ability and qualifications.

Anna Lagerkvist