Agency Workers Regulations (AWR) Contractors Guide

Agency Workers Regulation, or AWR as it is more commonly referred to will come into effect on 1 October 2011 to protect temporary workers hired through an agency or those working through an Umbrella Company. According to guidance notes 'the definition of an agency worker excludes those who are in business on their own account where the hirer is a client or customer of the individual (i.e. a genuine business to business relationship)'. To read the full 48 page Guidance for Agency Workers Regulations published by the Department for Business Innovative and Skills, please click the link.



The Agency Workers Regulation rule enforces that any ‘temp’ working for a company after 12 weeks, on the same job role, will have the same working conditions to that of a permanent employee in the same job, putting a whole new spin on the way ‘temporary workers’ are treated.



The 12 weeks starts for all temp / contract umbrella workers from 1 October 2011 and any previous employment is disregarded.



So let’s start with some of the basic questions...



Who is affected by the Agency Workers Regulations?



Although we may be repeating ourselves just to be clear, this new rule will affect any temporary worker supplied to a company through a recruitment company/agency or through an Umbrella company. This new ruling does not affect contractors working through their own limited company.



The summary table below shows if you would be affected by the scheme.



Status of Individual Affected by AWR

Supplied by Temporary Work Agencies Yes

Supplied by intermediaries (eg umbrella companies) Yes

"Sham" self-employed or Managed Service Contracts Yes

Limited company contractors, consultants, freelancers No



What does AWR mean for me?



In brief, on starting your temporary role the following will apply:



- Day 1 Rights - On day 1, when a temporary worker is placed on site they will have access to facilities like the canteen, child care, transport or parking or gym membership if access to these facilities are given to permanent workers on the same pay scale or in the same job role.



- After 12 Weeks - On the same site the temporary worker will receive the right to equal pay, working time, night work, rest periods and contractual annual leave. "Pay" includes fees, bonuses relating to work done, commission and holiday pay, it excludes occupational benefits like contractual maternity pay and sick pay above statutory minimum, pensions, financial participation schemes and expenses. It is important to note that the 12 week period continues to accrue if there is an absence due to pregnancy or maternity/paternity/adoption leave.



Although the 12 week qualifying period will give temporary workers some benefits similar to that of permanent employee temporary agency workers will only be offered the basic working and employment conditions as they would have received should they have been directly recruited by the hirer as a permanent employee.



The new benefits you will receive are listed below (depending upon where you work of course and if the permanent employees receive such benefits):



- Holiday (normal entitlement for employees)

- Basic Pay

- Rest breaks/restrictions on night work

- Piece-work production target bonus

- Luncheon vouchers

- Access to on-site canteen or childcare facilities



However you will not be entitled to:



Company sick pay

Redundancy pay (statutory or enhanced)

Maternity/paternity/adoption pay

Pension

Long-service or loyalty bonus

In the likely event that a temporary worker is receiving better conditions than that of the ‘comparable employee’ (A permanent employee), AWR would not require your pay to be brought in line with that of the comparable employee.



For further information please read: http://www.sjdaccountancy.com/agency_workers_regulations_awr_contractors_guide.html