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AWR has ‘Little Effect’ on Contractors

The Agency Workers Regulations are having ‘little or no’ effect on contractors.

There was much discussion and preparation for the new set of rules that were introduced on the 1st October 2011, but the Recruitment & Employment Confederation has reported minimal disruption to contractors.

The REC has highlighted the positive response to the introduction of the new regulations. There have been interesting developments, particularly in the IT sector, with companies using the Swedish Derogation Model as a means of keeping highly skilled contractors on company books rather than working through numerous providers.

The REC's Director of Policy and Professional Services, Tom Hadley, has said "it is encouraging to see that the regulations are having little or no impact so far at the higher end of the market. However, we must not take this for granted and must continue to raise awareness amongst client organisations of what the regulations mean and do not mean. The demand for contractors and interim managers remains strong despite the AWR coming into force in October and we will continue to monitor the situation as we approach the first 12 week milestone."

Mr. Hadley’s concerns reiterate the importance of contractors having a knowledge of the rules. A guide to AWR can be found here.

By Sean Dudley

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