The Agency Workers Regulations (AWR) comes into effect in the UK on the 11th October 2011. The aim of the regulation:
“is to ensure that the principle of equal treatment – which already applies to fixed-term and part-time workers – is extended to agency staff once they have completed a 12 week qualifying period. Equal treatment measures cover pay and working conditions but do not fundamentally affect employment status or the dynamics of how agency staff are placed and managed.” From the REC
In simple terms this new regulation affects those workers who currently work on a temporary basis through an agency and DOES NOT affect contractors who are self-employed, working through their own limited company. What is not clear yet is – does that apply to contractors using umbrella companies?.
For temporary workers it’s clear that there will be a 12 week qualifiying period from the beginning of their assignment, after which they will be entitled to the same basic working and employment conditions as their permanent working peers. Basic entitlements means working time, holidays and pay. It does not include sick pay, maternity pay, pensions, redundancy etc. Generally when we talk about temporary workers in the project management marketplace we are talking about individuals who are working at the entry level scale of project administration and project co-ordination so this new legislation is likely to unaffect more experienced PMO, project managers and programme managers however as mentioned above it is still unclear how individuals working through umbrella companies will be affected. We will know more when the UK government releases its Agency Workers Regulations guidance later this year and we will update you here on the Camel.
So How Exactly Will the AWR Affect Temporary Workers?
For many temporary workers working in project management for reputable agencies and organisations there isn’t actually much difference other than your holiday entitlement may go up to match that of a permanent worker in the organisation you are working within. Your pay may also go up but it is unlikely because many temporary workers already earn the same if not more than the permanent worker doing the same job (it has always been the nature of temporary work that hourly rates are more than the annual salary of a permanent worker doing the same job). Just so everyone is clear it doesn’t mean that a permanent worker can demand comparable pay to that of the temporary worker – it’s purely a regulation that covers the rights of temporary workers.
I think it’s fair to say that these regulations have been brought in to address issues that were prominent in other sectors and for lower paid workers like the gangmasters industry – “workers in the agriculture, horticulture, shellfish gathering and associated processing and packaging industries”.
If you’re currently working on a temporary basis through a recruitment agency that is paying you through PAYE and you’re unsure about how the Regulations will affect you directly, contact your agency and speak directly to your consultant.
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