Agency Workers Regulations - Swedish Derogation

PCG, the leading contractor and freelancer organisation, has released an informative guide to the Agency Workers Regulations.

The special guide has been mailed to recruitment agencies, and HR professionals across many of the UK's largest companies. You can also download a PDF copy here.

Guide to provide clarity to AWR

The PCG decided to create its own guide to AWR due to a widespread feeling within the industry that the existing Government guidance was inadequate, and the rules themselves ambiguous, particularly over which 'workers' fall within the scope of the AWR.

The guide, which has been compiled with the help of several leading academics, industry experts, and lawyers, aims to make it clear where the AWR applies and when it doesn't.

The 'quick start guide' on Page 5 is particularly helpful, as it provides a flowchart to enable individuals to work out whether or not they will fall under the scope of the new regulations or not.

Are limited company contractors within scope?

Most contractors and freelancers are expected to be seen as operating in business on their own account, and therefore out of scope, provided that the status of the agency / end client is that of a client or customer of the contractor's profession or business. However, simply operating via a limited company will not automatically make a contractors outside the AWR's scope.

Most umbrella company workers will fall within the AWR scope since they will rarely be 'in business on their own account'.

AWR was never intended to self employed freelancers

John Brazier, MD of PCG commented:

"Let's be very clear, the AWR itself is not intended to apply to freelance workers in business on their own account. However, the guidance lacks clarity and transparency for them and we have been forced to step in to supply this for freelancers, clients and agencies. This guide is therefore vital to ensure that those working with freelancers on a day-to-day basis have the confidence to conduct business as usual."

You can visit the PCG's site here.