The AWR came into force on 1st October 2011
The new Agency Workers Regulations 2010 (AWR) came into force on 1st October 2011 and following the 12 week qualifying period the first non compliance case could theoretically be filed as we celebrate Christmas. However, claims that end user hirers have not afforded their temps access to collective facilities or amenities could technically be filed from 1st October, as these rights are not dependent on the 12 week rule. With this in mind many lenders may well be looking to revise or restrict funding in order to reduce their own risk if their customers cannot produce evidence of compliance. Despite this, many recruitment businesses still seem to be burying their heads in the sand.
In order to help our clients prepare for AWR and gain a broader understanding of the formal regulations - and how they may affect their businesses – the Recruitment Finance Division of Lloyds TSB Commercial Finance hosted a number of AWR seminars in association with APSCo and our legal partners, including Brabners Chaffe Street LLP and Osborne Clarke.
Throughout June and early July we hosted seminars in London, Manchester and Birmingham and invited both Lloyds TSB Commercial Finance clients and APSCo members to attend the sessions.
During the seminars legal representatives, including Paul Chamberlain, employment partner at Brabners Chaffe Street Solicitors, Frances Lewis, Sector Group Head at Osborne Clarke and Sam Hurley, Head of External Affairs at APSCo, guided the audience through the formal guidelines and how they might be interpreted by a tribunal. The speakers then opened the floor up to questions, giving attendees the perfect opportunity to gain some insight into the regulations and how they may affect their own businesses.
While these sessions were extremely popular and were a great starting point for many of our clients, however with the legislation now in place we would strongly urge recruitment businesses to take independent legal advice regarding their own circumstances to ensure they have covered every possible eventuality for their business.
Commenting on the Recruitment Finance Division AWR seminar sessions, Paul Chamberlain, employment partner at Brabners Chaffe Street Solicitors, said: “There is little doubt that the regulations mark a sea change in the way in which temporary workers are compared to those who work directly for end user clients. But many end users don’t realise that they have legal responsibilities under the regulations and, as a result, they really do have to work in partnership with their agencies to share information and get the approach right. There are a number of solutions available to agencies and end users which mitigate the effect of the regulations and we are working actively with a number of clients to seek to put in place appropriate mechanisms to ensure that any negative effects are minimised. These are technical provisions and there is little doubt that good legal advice is needed to ensure that a safe course through them is plotted.”
By engaging with a lawyer formally you will also gain independent, tailored advice and you will be able to rely on the added protection of their Professional Indemnity cover for the advice given. Furthermore, by implementing their advice you can demonstrate compliance to your funding provider ensuring your cashflow remains unaffected.
Nevertheless, until we have some legal precedents in place, expected early next year, the true understanding and impact of AWR will continue to be uncertain.