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Agency Workers Regulations

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.

Agency Workers Directive Contents:


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.

^ TopRecent News

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 | Thu, 23 Oct 2014

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 | Mon, 31 Oct 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 | Wed, 28 Sep 2011

Agency Workers Regulations: new contractor resource to help determine AWR status

Contractors can download a free new resource to help determine their AWR status and turn the new regs into a source of competitive advantage.

Others | Tue, 27 Sep 2011

Agency Workers Regulations: 51% of contractors have never heard of them – new survey

With less than a month to go before AWR takes effect, a ContractorCalculator survey reveals that 51% of contractors have never heard of the new regs.

Others | Wed, 07 Sep 2011

Umbrella company contractors to reap multiple benefits from Agency Workers Regs (AWR)

Contractor umbrella solutions providers will enter a new era that should benefit contractors once the Agency Workers Regulations come into force.

Others | Mon, 15 Aug 2011

^ TopUseful 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?