Umbrella Companies | Umbrella companies and the agency workers directive

Umbrella companies and the agency workers directive

The controversy regarding the Agency Workers Directive continues, as in fact it is likely to so do for some time to come. Although the AWD does not come into force until next October, the recruitment industry is already starting to prepare for implementation. However, there are still aspects of the regulations that require further clarification.

Danbro, a contractor accountancy firm, thinks that some employers will stop hiring temporary workers because they will need to be granted equal rights with their permanent counterparts after 12 weeks in a similar role. The firm also thinks that professional umbrella company and agency payroll contractors, who value the flexibility that comes with temporary roles, will find the new regulations inconvenient.

Damian Broughton, a partner at Danbro, said that he was pleased that the REC is going to discuss industry concerns with George Osborne and Chris Grayling and hopes that changes can be implemented before the regulations come into force next year.

Recruitment firm Adecco recently surveyed HR professionals and discovered that many of them are confused about the AWR and in particular the timeframe for implementation. 61% of the survey’s respondents did not appreciate that the regulations go live within the next 12 months, and 80% have no idea what will happen if they do not comply.

Whilst the government does have some flexibility when it comes to amending the AWR, they must abide by the regulations’ principles. However, the UK’s flexible workforce will play an enormous role in securing the country’s economic recovery and so it is vital that any discussions lead to a positive outcome that will benefit everybody.

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