Employers still confused about Agency Workers Regulations

Many employers are still confused about the implications for their business of the forthcoming Agency Workers Regulations (AWR), despite there being only two months to go to get adequate compliance processes in place. This is according to new research from recruiter Adecco.

Adecco’s latest survey of nearly 500 HR professionals found that respondents were particularly unclear about the impact on temporary workers’ benefits (including holidays) and bonus eligibility, as well as who is ultimately responsible for ensuring compliance with the new rules, which come into force on 1 October.

Over half (55%) wrongly think that the Regulations entitle temporary workers to exactly the same benefits in kind as permanent staff and almost a quarter mistakenly believe that they will accrue all the same employment rights from day one. Nearly a third are under the impression that agency workers will be entitled to the same bonus arrangements.

In addition, more than a quarter (26%) incorrectly believe that the responsibility for ensuring adherence to the new rules lies solely with the temporary staffing agency who provides the workers, whereas in fact the duty is shared.

Steven Kirkpatrick, Managing Director of Adecco General Staffing, stresses that from day one, agency workers will be entitled to equal access to collective facilities and amenities, which employers might subsidise and would normally reserve for permanent staff, such as parking, canteen or childcare. They will also be eligible to receive information about internal job vacancies. 

He said:

“Some employers may think that because workers only become eligible for certain entitlements after a 12-week qualifying period, they’ve still got quite a lot of time to sort out what they need to do before the new rules really hit home, but in fact this is not the case.

“For those organisations that rely on the flexibility of agency workers, they need to be taking steps to prepare now to ensure that they are compliant from day one. Even for those elements which apply after the 12-week qualifying period, it will still take time to ensure that the necessary processes, such as tracking and monitoring systems, are in place and working properly.”

He added:

“Employers should start talking to their staffing agencies now, if they have not already done so. Recruiters are best placed to help employers find the right solutions to negotiate this new legislation so that they can continue to make the best use of the flexibility, the temporary workforce affords.”

The research appears on the same day that amendments have been made to the Regulations, to correct various drafting errors in the original version.

According to Greenwoods Solicitors:

"The change in definition of an ‘agency worker’ from someone who has an employment contract or 'any other contract to perform work and services personally for the agency' to 'any other contract with the agency to perform work or services personally' may be subtle, but clarifies that the agency workers who perform work for parties other than the agency – i.e. almost all agency workers as generally understood – will be within the scope of the AWR.

"The other two amendments are of less general application, but are nonetheless important. The ‘Swedish derogation’, which disapplies the principle of equal treatment where an agency offers a worker a permanent paid contract of employment in between assignments (uncommon in the UK), has been amended so that the requirements only apply after the end of the worker’s first assignment.

"Agencies will now also only be required to obtain information needed to assess compliance with the right to equal treatment to be exempt from liability for breaches of that right. Previously, it was unclear to what extent other information had to be collected to ensure the agency fell under the exemption."