Agency Worker Regulations Final Guidance

[SunnyInHades]

Looks like moves from Umbrella to Ltd are starting because of the impending AWR...

From... Recruiters warned about persuading temps to become PSC contractors | News | Recruiter

"many staffing companies are being tempted to “persuade” contractors to switch from working as PAYE temps or through umbrella companies and become PSC (limited) contractors instead ... a key reason is to avoid umbrella workers making equal pay claims under the Agency Workers Regulations (AWR), coming into force this October."

"Contractors who fail to pass the ‘outside IR35’ tests may then decide they may as well claim the upside, ie claim AWR rights (including the same basic pay, disregarding expenses, as comparable perms), leaving staffing companies back at square one on AWR"


Admin note from CUK: Further reading here:-[/I] Agency Workers Regulations

[SueEllen]

Thinking about it, I have never actually worked for an agency, (eg like a temp or security guard where the agency directs the worker to go and work here or there),

I have done back in my youth.

They behave appalling to people regardless of how skilled you are.

Unfortunately they had a preference for people with degrees to do the roles in banks and large utility companies as there was a chance the company would take you on for their graduate or management trainee roles. This meant the agency would get a large payment for finding you.

it has always been on an introduction basis then the agency as a middle man factoring the payments. I'm wondering if this will force agencies to change their business model so that they get paid for the introduction but then the contractor engages with the client directly thus avoiding the agency worker regulations?


Might be a good thing if it makes agencies more transparent about how much they charge but it may also put clients off because they don't want to engage people directly.

There are some companies that do that already plus there are companies around who will employ contractors directly.

Unfortunately they are a hard to find. However it can be done even if you just use the job boards......

[Wanderer]

"This must be a true reflection of the reality of the relationships
between the parties involved and not simply a reflection of the contractual terms"

Could also mean the end for a lot of contractors.

Thinking about it, I have never actually worked for an agency, (eg like a temp or security guard where the agency directs the worker to go and work here or there), it has always been on an introduction basis then the agency as a middle man factoring the payments. I'm wondering if this will force agencies to change their business model so that they get paid for the introduction but then the contractor engages with the client directly thus avoiding the agency worker regulations?

Might be a good thing if it makes agencies more transparent about how much they charge but it may also put clients off because they don't want to engage people directly.

[Sockpuppet]

Oooh, that up's the ante on IR35 doesn't it. Suddenly the agencies will get all concerned about not putting stupid IR35 caught clauses in their contracts so I guess there is some good to come out of it.

"This must be a true reflection of the reality of the relationships
between the parties involved and not simply a reflection of the contractual terms"

Could also mean the end for a lot of contractors.

[Wanderer]

Hopefully this will men more IR35 friendly contracts and working practices.

Oooh, that up's the ante on IR35 doesn't it. Suddenly the agencies will get all concerned about not putting stupid IR35 caught clauses in their contracts so I guess there is some good to come out of it.

[Sockpuppet]

Hopefully this will men more IR35 friendly contracts and working practices.

[LisaContractorUmbrella]

Finally published; it has been confirmed, as we suspected, that contractors working through their own limited company and fall inside IR35 will not be outside the scope of the legislation:

Example characteristics that demonstrate you are not in scope
3 An organisation contracts out the management of its canteen. The contractor
manages the entire operation of the canteen and is responsible for the direction
and control of its own catering staff. Although they are working on the
customer’s premises, the contractor’s workers are not agency workers because
they are not subject to direction and control by the customer.
3 An individual is works in organisation A, but is on secondment to organisation
B, who pays the individual until they return to the original organisation A when
the secondment ends. Organisation A is not acting as a TWA as it does not
fulfil all the requirements of a TWA given it’s main activity is not the supply of
workers.
3 An individual works for an internal project team and is paid directly by his
employer, covering a variety of temporary posts dependent on where he is
needed. The individual is not in scope.
3 Where a single legal entity recruits temporary staff directly who work for the
same legal entity they not in scope.
3 An individual has set up his own limited company through which he provides
IT services. He is engaged by a TWA and supplied to work on a specific project
with an anticipated duration of 12 months. The individual has no fixed working
pattern and can determine how and when he performs the services; he can also
send a substitute to perform the services at any time or payment is made on
specific deliverable or on a fixed price and not simply on an hour, daily or
weekly rate. However, he is subject to the hirer’s reasonable and lawful
instructions. Given the absence of personal service and mutuality of obligation,
the company is a client or customer of the individual, therefore the individual is
out of scope. This must be a true reflection of the reality of the relationships
between the parties involved and not simply a reflection of the contractual terms