Agency Workers Regulations (AWR)
Agency Workers Regulation (AWR) came into effect as of 1st October 2011 with the aim of protecting temporary workers hired through an agency or those working through an Umbrella Company.
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.
This means that temporary workers after 12 weeks in the same role will need to be treated to the same terms and conditions relating to pay as a permanent member of staff such as:
• Basic pay
• Holiday pay
• Bank holidays
• Overtime pay and some bonuses
But excludes: sick pay, loyalty bonuses, pensions, maternity and redundancy payments.
Who is not affected by the Agency Workers Regulations?
This new ruling does not affect contractors working through their own limited company and are outside IR35.
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 e.g. umbrella companies Yes
Limited company contractors outside IR35 No
Other temporary workers who may not be affected are those who work through an umbrella company and have permanent contracts of employment who are guaranteed a number of hours and pay during contractors – this model is called ‘Swedish derogation’.
Employer penalties
Employers under the new AWR legislation will have no choice if they take part or not. If they do try and avoid the 12 week qualifying period by rotating agency workers by changing assignments to ensure they do not meet the 12 week qualifying period, they will face fines up to £5,000.
How do temp workers find out if they are being treated fairly?
Once they have successfully completed their 12 weeks qualifying period they are entitled to find out about basic terms and working conditions. Typically they will first approach their agency who will have 28 days to inform them. If after 28 days they have not responded, they can then ask their employer directly who then has 28 days to reply.
If after 28 days no information has been given, the temp worker can take both parties to a tribunal.
There is no maximum limit to any compensation awarded to successful claimants but a minimum of two weeks' pay should normally be awarded by the tribunal in relation to a failure to provide equal terms and conditions.
You might also find reading this helpful -
Agency Worker Regulations 2011
Hope that helps
