Employers are extremely worried about new laws on sick pay aimed at giving more rights to people on flexible contracts, says staffing agency association ABU.

Companies which employ large numbers of people on flexible contracts are worried they will be saddled with large bills if their temporary staff become ill.

While companies which employ staff through an agency will not have to foot the bill, employers who employ temporary staff directly, or have staff on zero hour contracts, may be liable, ABU says.

The new legislation, which will be back-dated to January 2012, will require employers to pay temporary staff sick pay for two years, followed by a maximum eight years in further benefits.

Employers’ organisations had campaigned hard against the new rules. ABU says employers will now be less likely to take on older temporary staff or people with a poor health record.