The Agency Workers Regulations (AWR) came into force on 1 October 2011, and have a profound impact on contractors and the contracting sector. After 12 weeks on assignment, many contractors now qualify for equal pay and conditions to their permanent counterparts.
Whilst highly paid contractors are unlikely to request the equal, typically lower, pay of their employee colleagues, there is no doubt that the level of compliance and administration has significantly increased costs for clients and recruiters, which will ultimately be shared with contractors.
The final guidance to the legislation for recruiters and hirers published by the Department for Business, Innovation and Skills confirms that umbrella company contractors will be subject to the AWR. But the situation for limited company contractors is unclear, as there will be new tests with as yet unknown criteria that must prove contractors are not engaged in a “profession or business undertaking.”
ContractorCalculator will continue to publish the latest guidance and interpretation of the legislation in this Special Report section as it happens, so bookmark this page and check back regularly.
Contents:
Background
What does the Agency Workers Directive mean for contractors?
Fears that the AWD spells the end of contracting are unfounded as indications suggest ltd company contractors may be in the clear – but not umbrellas.
Contracting, subcontractors and AWR: when do the Agency Workers Regulations apply?
Contractors subcontracting client work to other contractors may find the Agency Workers Regulations could apply.
Agency Workers Regulations – AWR risks for contractors, clients and agencies
Contractors, clients and agencies all face, and have to manage, risks since the Agency Workers Regulations come into force on 1 October 2011.
Quick Start Contracting Guide: The Agency Workers Regulations
ContractorCalculator’s Quick Start Guide to the Agency Workers Regulations provides answers to your most frequently asked questions about the law.
Contractual clauses and the Agency Workers Regulations (AWR)
Contractors finding clauses relating to the Agency Workers Regulations in agency contracts needn’t necessarily be alarmed says Roger Sinclair of Egos.
Recent News
Quick Start Contracting Guide: The Agency Workers Regulations
ContractorCalculator’s Quick Start Guide to the Agency Workers Regulations provides answers to your most frequently asked questions about the law.
Others | Thursday, 21 September 2017
Contracting, subcontractors and AWR: when do the Agency Workers Regulations apply?
Contractors subcontracting client work to other contractors may find the Agency Workers Regulations could apply.
Others | Tuesday, 15 August 2017
Stevens v Northolt High School AWR ruling forces client to make £10k equal pay award
The Stevens v Northolt High School AWR ruling means contractor clients could be responsible for paying out when workers don’t receive equal pay.
Others | Thursday, 23 October 2014
Contractual clauses and the Agency Workers Regulations (AWR)
Contractors finding clauses relating to the Agency Workers Regulations in agency contracts needn’t necessarily be alarmed says Roger Sinclair of Egos.
Others | Thursday, 23 February 2012
Umbrella contractors already being encouraged to incorporate because of AWR
Umbrella contractors are already being encouraged to incorporate because of the Agency Workers Regulations, says ContractorCalculator’s Dave Chaplin.
Others | Monday, 31 October 2011
Agency Workers Regulations: careful preparation will mitigate impact, says expert
Contractors may experience little change once the Agency Workers Regulations come into force, explains Professional Passport’s Crawford Temple.
Others | Wednesday, 28 September 2011
Useful Sources
Agency Workers Directive
Copy of the EU Proposal
Agency Workers Directive Impact Calculator
What is the financial impact on your income if the legislation comes into force?