Businesses urged to act now to ensure readiness for AWR implementation
Posted Sep 29, 2011
With just a few days to go before the Agency Workers Regulations become law on October 1st, businesses are being warned that they face large fines if they break the new rules.
What do the new rules mean?
The main aim of the Regulations is to provide agency workers with the same basic rights as permanent staff members after 12 weeks on a job.
These working conditions apply to basic pay, overtime pay, shift allowances, lunch vouchers, bonuses, annual leave, and rest breaks.
In addition to receiving the same basic working rights, agency workers will also receive a number of benefits from day one, including access to childcare, and the staff canteen.
All agency workers are covered by the AWR, including umbrella company contractors. Limited company contractors who are truly 'in business on their own account' should not be affected.
Most employers not prepared for the AWR
Workplace relations expert Acas has warned employers that they could face a fine up to £5,000 from an Employment Tribunal if they do not comply with the Regulations. This fine could then be multiplied for each agency worker affected.
Chief Executive John Taylor, commented: "Businesses really need to make sure that they have a handle on these changes. It's not something to think about down the line and get it wrong, as it can be costly to your business.
"Some employers may try to get round the regulations by hiring and rehiring temps on a succession of shorter periods. But they need to be careful of the many provisos within the new law. We would always urge employers to take a fair approach as the basis for any workplace relations."
Worryingly, a recent survey carried out by REC shows that most employers either are unaware of the AWR completely (23%), or unsure about the changes they were going to make ahead of the implementation date.
You can find out more in our brief guide to the AWR here.
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