The Employment Standards Inspectorate will issue guidance to employment agencies and other stakeholders. The regulations exclude bonuses payable for the amount or quality of work done by the worker; company sick pay; maternity, paternity and adoption pay; pension contributions and severance pay. Workers will be protected from detriment and unfair dismissal if they try to assert their rights under the regulations. The Agency Workers (Amendment) Regulations 2019 repeals what is known as the ‘Swedish derogation’ contract commonly used to employ at least ten per cent of the UK’s 800,000-plus agency workers. It is expected there will be an implementation period to allow employers time to adapt to the reforms. From 6 Apr 2020, UK temporary agency workers employed on a “pay between assignments” contract —also known as a “Swedish derogation” contract — will be entitled to pay parity with directly hired employees after 12 continuous calendar weeks in the same role. For help and guidance about this area of the law, please contact Wards Solicitors’ Employment team, Business Employment team or Employment Law Specialist Solicitor Julia Beasley directly. This website uses cookies to ensure that we give you the best user experience. somebody hired by the end client and doing broadly the same job as the agency worker. The amending regulations provide the following: Provide your contact information to get in touch, The Agency Workers (Amendment) Regulations 2019, Directive 2008/104/EC of the European Parliament and of the Council of 19 November 2008 on Temporary Agency Work, Taylor Review of Modern Working Practices. A list of our 11 branches is available here. If you would like more information about AWR and how it affects a role you are in or are considering taking, please get in touch with a member of our team. Agency Workers Regulations aim to combat discrimination of people who work for employment agencies, by stating that agency workers should be no less favourably treated in pay and working time than their full-time counterparts, who do the same work.. The cost of increased wages could be up to £380 million each year to hirers across the UK, according to government estimates. We provide Umbrella employment via our FCSA-accredited parent company, JSA Services Limited. We are however available for video call and telephone meetings. Currently, these temporary workers receive a certain amount of pay between temporary assignments in exchange for waiving their right to pay parity. If you currently work through your own limited company/PSC but anticipate changing as a result of the reforms to off-payroll legislation, then AWR may become applicable to you, particularly if you join an Umbrella company. AWR is the Agency Worker Regulations and they’re the rules which ensure fairness for anyone who works through an employment agency. From 6 April 2020, the new rules will give agency workers a right to pay parity with direct employees once they have undertaken the same role with the same hirer for 12 continuous calendar weeks. Create your account today for an optimal, personalized experience. If you’d prefer us to call you back, just use the form below to give us your number and the best time to call. At Mercer, we believe in building brighter futures. We are still able to take on new cases. Whilst in other parts of the EU, this entitlement comes into Click here to keep updated on the latest industry news, market insights as well as the occasional exclusive offer! It includes certain bonus payments, holiday pay, overtime, shift allowances, unsociable hours premiums but doesn’t include company sick pay, maternity/paternity/adoption pay or pension and redundancy pay. Late last month we saw the first Employment Appeal Tribunal (EAT) decision on parity of terms for Agency workers. Pay parity is defined as the same basic working and employment conditions as comparable workers who are directly recruited by the same business. Our latest announcements and press releases, both global and local. Thank you for your enquiry. This guidance aims to help hirers of agency workers and the recruitment sector to understand the Agency Workers Regulations that came into force on 1 October 2011. See more articles by K&B Tax & Accountancy Team. The changes — which are expected to affect around 130,000 workers and will impact employers relying on temporary workers — feature in The Agency Workers (Amendment) Regulations 2019. An agency worker is defined as someone who has a contract with a temporary work gency but works temporarily for a hirer. What are the Agency Worker Regulations? These workers can bring claims against their employers for not issuing the statement in time. From the moment you start work through an Umbrella company, you have worker’s employment rights such as access to collective facilities and amenities such as the canteen, transport services and childcare facilities. Together, we’re redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Currently, these temporary workers receive a certain amount of pay between temporary assignments in exchange for waiving their right to pay parity. Background. Crucially, it means that after a new 12-week qualifying period, employers will have to pay agency workers the same rate as direct recruits. The worker employed has a permanent contract with their agency, not the end client, which allows them to be paid between assignments but not necessarily to receive the same wage and employment benefits as the end client’s permanent staff. JSA is one of the UK’s biggest umbrella and accountancy services providers, serving thousands of contractors and recruitment agencies across the country. Similar to IR35, the guidance is designed to ensure fair treatment of contractors and freelancers, and ensure that there are clear … The AWR defines two ‘models’ of operating: Under both models, the worker is entitled to ‘day 1’ rights, such as access to certain facilities and amenities, and it is likely that the Swedish Derogation model will be repealed next year. This includes key elements of pay… Pay parity (Regulation 5) Under this model, after 12 weeks on an assignment, the agency worker is entitled to pay parity when compared with any directly hired counterparts, and the agency worker’s pay for the purpose of this calculation is the value they receive after the party that pays them deducts any of … Wards Solicitors remains very much open for business despite the new restrictions. We are also able to offer expert advice and guidance to employment agencies on all aspects of AWR. In a nutshell, if you receive pay from your end hirer via agency payroll or an intermediary such as an Umbrella company, not from your hirer directly, then you’re an agency worker and therefore protected by the AWR rules. Please telephone the branch most convenient to you between 9am and 5:30pm. Why naming the co-respondent is a bad idea, The Equality Act 2010 – what’s new and what’s changed, at a glance, Wards’ Yate office – helping our local foodbank, Wards Solicitors recognised as leading South West law firm, Wards announces new Partnership and full TEP accreditation for lawyers, ‘Tiger King’ and the importance of Estate Planning, Please email or telephone your usual lawyer or team, or. Yes, I want to switch to K&B accountancy group, Yes, I want to take advantage of this offer, The South Quay Building, 189 Marsh Wall, London, E14 9SH, UK, Data Protection, Privacy Notice and Cookies, AWR (AGENCY WORKER REGULATIONS) EXPLAINED. After 12 weeks in the same job, agency workers are entitled to equal treatment as if they had been recruited directly by the hirer. It would also be useful if you could give us some idea of what you’d like to discuss. A major change in employment law aimed at improving the rights of agency workers is to come into force next April. From 6 April 2020, the new rules will give agency workers a right to pay parity with direct employees once they have undertaken the same role with the same hirer for 12 continuous calendar weeks. If you have documents for us, including for ID certification, please deliver them to our letterbox at the office handling your case. Be a part of our global team dedicated to building brighter futures for employers and their people. Though widely used and legal, such contracts have been criticised as an easy way for companies to avoid paying agency workers fairly. After a 12 week qualifying period, you have the right to equal pay (the same pay as a permanent colleague doing the same job), automatic pension enrolment and paid annual leave. The AWR aims to combat the discrimination of agency workers to the extent they are no less favourably treated than their full time or directly hired counterparts, i.e. Explore Mercer’s latest thinking to see how we’re helping to redefine the world of work, reshape retirement and investment outcomes, and unlock real health and well-being. The measures follow recommendations in the 2017 Taylor Review, and they will revoke regulations 10 and 11 of the current law that provides for the option to employ temporary workers on a pay-between-assignments contract. “Pay” includes any payment in connection with an agency worker’s employment, including certain bonus payments, overtime payments, shift allowances, premiums paid for unsociable working hours and holiday pay. © 2018 K&B Accountancy Group. Whilst it’s likely that Umbrella working will require you to pay more tax (as you’re subject to PAYE tax rules when working this way), it does come with certain benefits, and AWR is one of them. However, we are no longer able to arrange face to face meetings with clients except in a very few individual and emergency cases. the agency may still offer an agency worker a permanent employment contract and pay between assignments, but the agency worker will be entitled to equal treatment to pay after 12 weeks Holiday rights You have the same right as other workers and employees to a minimum of 5.6 weeks' paid holiday each 'leave year' when you’re on an assignment. Also excluded are bonuses not directly attributable to the amount or quality of work done, for instance bonuses aimed at encouraging loyalty or rewarding long term service. All rights are reserved. Our telephones lines are operating as normal behind closed doors, Employers must pay agency workers the same as direct recruits, When your neighbour’s building work is ruining your life, Penalty stamp duty rate – the main residence exception, Divorcing for adultery? If you choose to continue using this website, you agree to our use of cookies. This type of contract was introduced when the UK implemented the EU directive 2008/104/EC on temporary agency work.