The Agency Workers Regulations (AWR) is now effective. What does this really mean?
This law was introduced in 2010 to protect temporary / agency workers from exploitation and give the workers various levels of rights that they would otherwise not be entitled to as ‘non-permanent employees’. Following on from this, many companies are rethinking their recruitment strategies, and companies that have depended heavily on interim managers and temporary workers will start to look for those who will not create extra costs for them, or even increase the likelihood of being involved in an employment tribunal that could involve them, their interim manager or temporary worker and an umbrella company or agency. The implication of this law is that companies that currently use this recruitment model will now be aware of likely costs that could emerge from claims and aim to employ those not affected by the AWR.
If you are not sure if someone you employ is affected by AWR, and are considering withdrawing contracts or renegotiating terms, here are some general questions to ask before you decide what action to take:
- Is the worker working through their own Limited Company- or through an umbrella company?
- Are they submitting their own invoices and demanding for payment independently?
- Are their working hours dictated by an agency or you, the client?
- Can they hire employees at their own expense?
- Do they have their own business stationery including business cards?
- Do they have their own business insurance?
- Does the worker’s CV or company profile show the right overview? Even a CV showing that one is looking for interim roles demonstrates what the law refers to as ‘publicly stating its line of business’ and can help support your claim.
Get legal advice if you need to but you need to take action soon. Review your working conditions. Evaluate the status of your workers. Compare the discrepancy in pay strutures for permanent and temporary workers. For clients looking for finance specialists who provide flexible pay-as-you-use financial management from any level from Bookkeeper to Finance Director/ Board Level, and are outside the jurisdiction of AWR, email us at email@example.com. The eFM Network is a nationwide network of finance specialists/ executives working via their own limited companies and is constantly expanding to new locations across the country.