Survey shows that most contractors have never even heard of the AWR
Posted Sep 8, 2011
A new survey suggests that, with less than one month to go before the AWR become law, an incredible 88% of contractors working via agencies have not even been told about the implications of the new rules by their recruiters.
The research, carried out by ContractorCalculator, shows that many in the industry are completely unprepared for the implementation of the AWR on 1st October 2011.
Dave Chaplin, CEO of the contractor site, explained:
"Considering the impact that AWR could have on a contractor's career and livelihood, this lack of knowledge is worrying.
"We also found that 32% of contractors intend to carry on as before post-1st October because they believe the regulations won't apply to them, which for many simply won't be the case."
The Government AWR guidance states that limited company contractors who are genuinely in business on their own account should not be affected by the new rules, but umbrella company contractors are considered to be in-scope automatically.
"The lack of engagement by clients and recruiters is also cause for concern, particularly for umbrella company contractors.
"93% per cent of umbrella contractors participating in the survey contract via an agency and of these 89% say their agent has not broached the topic of AWR. With clients, the figure rises to 97%: only three in a hundred clients have engaged with their umbrella contractors about AWR."
Interestingly, despite most respondents seemingly having no knowledge of the regulations, many of them are planning to take action after all, according to the research. 84% of those surveyed said they do plan to find out more about the AWR from their agency (23%), Government sites (28%), or contractor information sites (31%).
One contractor, responding to the survey, perfectly illustrated the lack of understanding many companies still have about the new agency rules:
"My client, a very large international IT company and household name, still seems completely oblivious to the implications of AWR. My agency has still not offered any guidance and told me since our contract is 'IR35-friendly', I don't need to worry."
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