Clients to get free advice on Agency Workers Regulations
The new Agency Workers Regulations (AWR) are due to come into force in less than a year- September 2011- as part of the European Agency Workers Directive.
Under the AWR agency workers will get the same rights as permanent workers. It is pivotal that recruiters are aware of the regulations and understand how they will impact on their business.
There is some fear that the new regulations will force companies to stop using temporary workers, however temporary agency workers’ rights will only kick in after 12 weeks of employment. This could lead to contracts of less than 12 weeks becoming the norm. Agencies will need to think about how they will fund any additional admin costs incurred under the new AWR. Will they absorb the costs or will they pass the costs on to the employers? They’ll need to consider what impact this will have on cash-flow and investigate ways to fund it.
There will undoubtedly be further thoughts about concessions, and ways to manage through the legislation, but decision makers in the sector must ensure they understand the regulations and are compliant, seeking professional advice where there is any uncertainty.
The latest update on AWR is that the government has announced on 19th October to no longer seek amends to the new regulations. This means the Government will now press ahead producing guidance for employers, most likely to be published in February/March, with a final version appearing later in April/May.
However, to help recruiters before then, the Recruitment Finance Division of Lloyds TSB Commercial Finance is producing a checklist to advise all of its clients on AWR compliance. This will help raise clients’ awareness of the AWR and get recruiters to start thinking about the potential ramifications of the new legislation.
To find out more, just contact the Recruitment Finance team on 0800 587 6033.