Agency Worker Regulations 2010 – How do they affect you?

The long awaited Agency Worker Regulations 2010 came into force on 1st October 2011. There has been much written about this piece of legislation, so with the help of the Professional Contractors Group (PCG) we have summarised the main elements.

The regulations will entitle agency workers to the same or no less favourable treatment as comparable employees with respect to basic employment and working conditions, if and when they complete a qualifying period of 12 weeks in a particular job. This will inevitably create a re-shift in the way temporary workers are managed; whether via a recruitment agency like GPA, an umbrella company or directly by the employer. 

What are the Agency Workers Regulations?

The Agency Workers Regulations (AWR) are a set of regulations intended to protect vulnerable low paid “agency workers” / temps. They also safeguard permanent employees from being undercut by low-cost agency workers. The regulations achieve this by enshrining in law the right for an agency worker to “equal treatment” with regards to pay, holiday and working time, once the agency worker has been in a position with an end client for 12 weeks. Freelance contractors working through their own limited company are not the target of this legislation and it excludes those in business on their own account.

Who is covered?

‘Temp’ agency workers (commonly described as PAYE) that have worked in the same job for 12 weeks qualify for equal treatment in respect of pay and basic working conditions. These weeks can be accumulated even if an employee works a few hours a week.

Who is not covered by the regulations?

The regulations don't cover the genuinely self-employed, individuals working through their own limited liability company or individuals working on managed service contracts. These people are not the target of this legislation.

What has PCG been doing on this issue?

PCG is an effective and powerful lobbying organisation as well as a representative body for freelancers. In addition to liaising closely with Government as the AWR was being developed, their extensive lobbying has ensured that the term “agency worker” is defined specifically so as to exclude freelancers in business on their own account. They also exclude those who do not work under the supervision and direction of the hirer. PCG believes that this successfully excludes freelance contractors from the scope of this legislation where they are operate as a genuine business-to-business supplier. However, the way this is done may not be immediately clear and agencies, end clients, and freelancers will want to learn as much as possible about the legislation in order to ensure they do not wrongly apply the AWR where it is not needed.

Where can I find a copy of the regulations?

A full copy of the regulations can be found at: www.bis.gov.uk/policies/employment-matters/strategies/awd

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