The Department for Business, Innovation and Skills (BIS) has published a new version of its guidance to help companies deal with the troublesome Agency Workers Regulations, due to come into force on 1st October, 2011.
The final guidance has been edited to clarify how Umbrella Companies can use the Swedish Derogation Model, which many Umbrellas hope to employ to avoid the worst of the financial fallout from the new legislation. AWR decrees that Agency Workers must be given the same rights as full-time employees after 12 weeks continuous service – Umbrella Companies, whose contractors are Workers and so will be in the AWR crosshairs, believe the Swedish Derogation Model (whereby they move their Contractors to full employees to circumvent the legislation) is a “flat-pack” (Sweden, Ikea, get it?) solution to the problems posed by AWR.
In an interview with Recruiter.co.uk, Lewina Farrell, head of professional services at the Recruitment and Employment Confederation (REC) threw the Umbrellas another curveball
“All agency workers, including those covered by this pay between assignments exemption, are entitled to other new provisions under the regulations – in particular equal treatment in relation to the duration of working time, night work, rest periods and rest breaks and annual leave after 12 weeks. This underlines the fact that the Swedish Derogation is not a ’miracle solution’ and that agencies will have to be diligent in weighing up the commercial viability.”
The Recruitment and Employment Confederation (REC) has encouraged agencies and hirers to refer to the final guidance in order to begin planning for the AWR.
Photo by Jon Jordan – CC
