The Daily Telegraph recently published a story suggesting that the Agency Workers Regulations may be watered down or even dropped.
The newspaper claims that lawyers for the Prime Minister have informed him that he could amend or scrap the new rules completely. When the present government took office, it explained that it would be too expensive to oppose the EU over AWR and so the regulations would be implemented. But as implementation draws closer, the picture has changed.
Trade associations have welcomed the news but said consideration must be given to any costs incurred in making changes at such a late stage.
Solicitor Nicola Tager questioned whether David Cameron had left it too late to seek legal advice. The AWR come into effect on the first of October and the Agency Workers directive must be implemented by December 5th or the government will face hefty fines from the EU.
Kevin Green, the chief executive of the REC, said he welcomed the fact the Cameron was taking an interest in the impact of AWR as the Confederation has been tirelessly highlighting some of its complexities. However, there would have legitimate cause to question why it has taken so long to pursue this option after agencies have devoted a lot of time and money into preparation for implementation.
He went on to say that the impact will be minimal in a lot of sectors and recruiters have already started working with clients to ensure equal treatment works. A realistic way forward would be if the coalition agreed to review the Regulations as soon as possible after the first year.
Ann Swain, the chief executive of APSCo, said she welcomed signs that a review will be undertaken into how the AWD excludes limited company contractors and pointed out that APSCo has given the government a methodology to clarify the issue and hopes this will be adopted.
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