Agency Workers Regulations (AWR)

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Agency Workers Directive delayed until Oct 2011

Posted Oct 16, 2009

The Government has confirmed that the implementation of the Agency Workers Directive (AWD) will be delayed until late 2011.

However, although small businesses will not fall under the new rules, agency workers working via umbrella companies will, as things stand.

The AWD will ensure that agency workers will receive the same pay and holiday rights as permanent employees after 12 weeks' employment - and could cost UK plc up to £40bn over the next ten years, according to the Tories.

Pat McFadden, Business Minister, said that implementation would be delayed - "giving recruiters and their clients time to prepare and plan."

"We are also mindful of the need to avoid changing requirements on business until the economic recovery is more firmly established."

This change comes as the Government confirmed that the implementation of the AWD will be delayed until October 2011, the latest possible commencement date under EU law.

David Frost, Director General of the BCC commented:

"The announcement to delay implementation of the Agency Workers Directive until October 2011 is welcome and we recognise that the Government has made some changes to their plans to help minimise the burden on business. In particular, we are pleased that small businesses with no pay scales or a comparable employee will be de facto exempt from this legislation.

"However, the definition of pay is still drawn far too widely and the issue of holiday pay will be a real headache for employers and agencies alike. These issues must be addressed before implementation."

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