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Staffing executives expect more regulatory restrictions for industry

A survey amongst the top executives of National Staffing Federations around the world shows that the overall regulatory outlook for the period between Q4 2021 and Q2 2022 is negative in 13 countries. In 10 countries, the impact of regulation changes is expected to be neutral overall, while in 5 countries, the overall outlook is positive. The Staffing Executive Regulatory Outlook (SERO) is a new tool launched by the World Employment Confederation to better assess the likelihood and potential impact of regulatory changes on the staffing industry.

Published on 25th November 2021

WEC’s Staffing Executive Regulatory Outlook (SERO) presents the results from a quarterly poll of top executives of National Staffing Federations around the world, asking them to assess the likelihood and potential impact of regulatory changes on the staffing industry within the next six-month period.

Executives of 28 different National Staffing Federations have responded to this first edition.

 

 

The overall regulatory outlook in the period between Q4 2021 and Q2 2022 is negative in 13 countries from an industry perspective. In 10 countries, the impact of regulation changes is expected to be neutral overall, while in 5 countries, the overall outlook is positive.

In Chile, Norway, Russia and Sweden, the impact of regulation changes on the staffing sector is expected to be the most negative, according to the SERO poll.

 

 

  • In Norway the industry faces a proposed sectoral ban in the construction sector and stricter conditions for use.
  • In Sweden, new regulation aims at facilitating the recruitment and dismissal of employees. A further focus was laid on retaining employees.
  • In Chile a left-wing government takes office in March 2022 and labour reforms have been announced which imply additional regulatory constraints for the staffing sector.
  • In Russia, regulatory barriers for the staffing sector and potential further regulation of outsourcing activities are expected.

In Italy and Spain, the staffing industry anticipates regulation changes, which will have an overall strong and positive impact on the sector.

  • In Spain there is an extension to the range of contract options: the so-called “fixed-discontinuous contract” and the training contract. The industry can conclude permanent contracts with agency workers to cover temporary needs in the different user companies, providing new business opportunities. The reform includes these positive elements, but also some challenging features related to higher costs and the limitations on fixed-term contracts, making an accurate early impact assessment difficult.
  • In Italy, restrictions introduced by the Dignity decree were eased based on an amendment to the law allowing for specific rules in collective labour agreements, benefiting the sector.

Changes to labour conditions for agency workers will have an expected negative impact on staffing in 7 countries, while changes to regulation on the conditions for the use of agency work services are expected to negatively impact staffing in 6 countries. On the other hand, in 5 countries a positive impact is anticipated from regulatory changes to conditions for use.

WEC members can access a more detailed analysis of the SERO results on the Members’ Area.

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