Default AWR

[kmge]

I have just been told that if I opt out of AWR in my current contract, my payrise from earlier this year will be revoked (about 10%).

As far as I am concerned, my contract is business to business. I run a company which specialises in web development, Lotus Notes, Project management and provides various services to various clients. I run a true business, with other streams apart from my day to day contract.

I have been asked if I would like to opt-out of AWR and hence revoke my company's day rate increase. If I ignore the form and do not sign it, the client will assume I am happy to work under AWR by default.

As far as I am concerned, by contract is business to business and therefore it does not have anything to do with me as an individual (I am the named representative), and is a contract from my agency to my company (supplier) to include a client....

So you were arbitrarily placed within AWR by the Client Co rather than the Agency?
The 10% "payrise" would have been what the Client Co calculated as "holiday pay, bonus" and alike. The Agency would have been given this by the Client Co to pay you during the weeks that you set aside for holiday and for bank holidays, this should not have been invoiced by your Agency to the Client Co and should not have been included in your day rate.
Now, if the Agency led you to believe that this 10% was part of your day rate then they led you astray they should have made it clear that the 10% or 12% or indeed the 11.59%, whatever it was was actually for holiday, bank holiday and bonus payment avaraged over the length of your contract and not used it as "bump" on the day rate.

Your choices.
1 sign the paper, drop out of AWR take the hit on the 10% (it was never meant to be if you are serious about business to business anyway) and it firms up your IR35 argument when Hector comes calling (only a bit but every little helps)
2 ignore the paper, stay in AWR, keep the 10% and hope that Hector doesn't come calling but your business to business statement sounds a little hollow if you do this.

[Taita]

Oops, I was thinking about the Employment Business and Employment Agency Regulations 2003.

Move along, nothing to see here...

Seems quite a few others were confusing AWR with EAR. However, I am puzzled as to why your agency would want you in EAR. These pages are full of comments about agencies forcing them to opt out (because their are potential benefits for the agencies). Perhaps you should ask the agent again just what is it they want and why they are seeking to penalise you if you do not comply.

[blacjac]

there is no opt out for awr

Oops, I was thinking about the Employment Business and Employment Agency Regulations 2003.

Move along, nothing to see here...

[TestMangler]

so the agency want you to stay opted in?
And will penalise you if you opt out?

Are you sure about that?

Opting out of the awr brings far more benefits to the agency so them encouraging you to stay opted in is a little 'unexpected'.

there is no opt out for awr

[blacjac]

So the agency want you to stay opted in?
And will penalise you if you opt out?

Are you sure about that?

Opting out of the AWR brings far more benefits to the agency so them encouraging you to stay opted in is a little 'unexpected'.

[northernladuk]

You misunderstand. I am not looking for a payrise, but the day rate will be reduced by 10% if I do choose to opt-out of AWR.

My contract is to my company and not me as an individual and it has a named representative as a starting point (quote: "the initial person engaged by the Supplier to perform the Services on its behalf or any other suitable alternate or additional personnel provided by the Supplier to perform any part or all of the Services on its behalf").

So... do I opt-in, opt-out, or just ignore it, as it has nothing to do with me?

I know you are not looking for a payrise. Contractors do not get 'pay rises' unless your LTD decides to increase wage your to you personally ofc.

Did you get your contract reviewed by QDOS? Naming you makes subbing complicated. You shouldn't be named at all.

[malvolio]

I have just been told that if I opt out of AWR in my current contract, my payrise from earlier this year will be revoked (about 10%).

As far as I am concerned, my contract is business to business. I run a company which specialises in web development, Lotus Notes, Project management and provides various services to various clients. I run a true business, with other streams apart from my day to day contract.

I have been asked if I would like to opt-out of AWR and hence revoke my company's day rate increase. If I ignore the form and do not sign it, the client will assume I am happy to work under AWR by default.

As far as I am concerned, by contract is business to business and therefore it does not have anything to do with me as an individual (I am the named representative), and is a contract from my agency to my company (supplier) to include a client.

Should I just ignore this and let them opt me into AWR and have nothing to do with this? Advice please...

There is no opt out for AWR. It simply doesn't apply if you are a business, otherwise you're in without the option. Which makes penalising you for it - if it does apply which is looks like it doesn't - appear just a little mean-spirited...

[PMMan]

AWR

You misunderstand. I am not looking for a payrise, but the day rate will be reduced by 10% if I do choose to opt-out of AWR.

My contract is to my company and not me as an individual and it has a named representative as a starting point (quote: "the initial person engaged by the Supplier to perform the Services on its behalf or any other suitable alternate or additional personnel provided by the Supplier to perform any part or all of the Services on its behalf").

So... do I opt-in, opt-out, or just ignore it, as it has nothing to do with me?

[MyUserName]

Never ignore any terms and condition changes.

Have you had your contract reviewed by QDOS or anyone like that?

Just out of interest, will it be you that is subject to AWR or anyone your company provides?

They are free to try anything they like, you are free to refuse anything you like. You are both free to walk away if you cannot come to a compromise.

[northernladuk]

You can't be a business if you are looking for 'pay rises'.......

You could also be in trouble with IR35 if you are named in a contract.

[PMMan]

I have just been told that if I opt out of AWR in my current contract, my payrise from earlier this year will be revoked (about 10%).

As far as I am concerned, my contract is business to business. I run a company which specialises in web development, Lotus Notes, Project management and provides various services to various clients. I run a true business, with other streams apart from my day to day contract.

I have been asked if I would like to opt-out of AWR and hence revoke my company's day rate increase. If I ignore the form and do not sign it, the client will assume I am happy to work under AWR by default.

As far as I am concerned, by contract is business to business and therefore it does not have anything to do with me as an individual (I am the named representative), and is a contract from my agency to my company (supplier) to include a client.

Should I just ignore this and let them opt me into AWR and have nothing to do with this? Advice please...