Agency Workers Regulations Agency Workers Regulations
Introductions Debbie Caswell MD North & Midlands Sue Jeffery Director Corporate Accounts Agency Workers Regulations
A Recap on AWR Agency Workers Regulations
Summary of AWR The Agency Workers Regulations were laid before Parliament on 21st January 2010 and came into force on 1 October 2011. The Regulations provide agency workers with equal treatment (after a qualifying period of 12 weeks) in relation to a direct recruit and cover the following areas of a hirer terms; • Basic working and employment conditions – restricted to pay and working time; and • Access to facilities provided by a hirer • Access to information about job vacancies offered by a hirer Agency Workers Regulations
Who is an Agency Worker? An Individual; • who is supplied by a temporary work agency to work temporarily under the supervision and direction of a hirer; and who • has a contract of employment or any other type of contract (a contract for services for example) under which they provide their service personally for the agency. • The Regulations will not apply to those who are genuinely self- employed. What is Self-employed? • an individual is not an agency worker if the temporary work agency is a client or customer of the individual’s business. • an individual is not an agency worker if the hirer is a client or customer of the individual’s business. Agency Workers Regulations
Who Else is Involved? The Temporary Work Agency • For the purpose of the Regulations a Temporary Work Agency is an undertaking which is in the business of “supplying individuals to work temporarily for and under the supervision and direction of the Hirer. ” • A “Temporary Work Agency’’ also includes an undertaking which is responsible for “paying for, or receiving or forwarding payment for, the services of individuals who are supplied to work temporarily for and under the supervision and direction of hirers. ” The Hirer • “hirer” means a person engaged in economic activity, public or private, whether or not operating for profit, to whom individuals are supplied, to work temporarily for and under the supervision and direction of that person; • In a traditional supply model the hirer will be the client of an employment business. Agency Workers Regulations
What is Equal Treatment? • A qualifying agency worker will be entitled to work under the same; “ basic working and employment conditions” that would apply if the worker was recruited by the hirer to do the same job. • To be entitled to receive equal pay and working conditions an agency worker must meet the qualifying criteria: Work for 12 weeks in the same role for the same hirer . A role will be the same role unless the work or duties that make up the role are ‘ substantively different ’ from those in the previous role. Agency Workers Regulations
Equal Treatment – What’s In … Day 1 Rights - access to facilities and current permanent job openings + Basic Pay + Plus pay related elements: • Overtime payments • Shift/unsociable hours allowance • Payments for annual leave (WTR) plus • Payments for bonuses/commissions relating directly to work performed by the individual • vouchers or stamps which have a monetary value • Other entitlements directly linked to work • Payments for difficult or dangerous duties Agency Workers Regulations
Equal Treatment – What’s Out… What is considered to be out: x Notice Payments x Occupational Sick Pay x Occupational Pensions x Redundancy Pay x Expenses such as accommodation and travel x Enhanced Maternity, Paternity and Adoption Pay x Financial Participation Scheme i.e. Share and profits distribution x Bonuses not relating directly to the work done x Company car allowance x Life Insurance x PMI x Discount for purchase of company products Agency Workers Regulations
The 12 Week Qualifying Period The 12 week count towards qualifying for equal treatment can be interrupted or paused in certain ways until the agency worker returns to same role. For example: • 6 week break for any reason • Sickness or injury up to 28 weeks • Jury service • Strike/lockout at hirer’s establishment • Periods when the hirer does not require the worker because of a regular shut down. For certain breaks, the agency worker will be treated as if he or she continued to work, i.e. clock will continue to count; • Breaks related to pregnancy, childbirth or maternity (protected period). • Statutory/contractual maternity, adoption or paternity leave. Agency Workers Regulations
Prior to October 2011 Consideration was given to; • Job Descriptions • Average length of temporary assignments – typically more / less than 12 wks • ‘Comparator’ data • Pay scales / rates - clear and concise pay scales that could be referred to • Differences in pay scales and employment benefits between perm / temp rates • Bonuses - are these tied to production/performance or other criteria? Is it clear that the bonus is paid in relation to ‘the amount or quality of work done’ • Potential increases in pay / charge rates applied after week 12 • How the company will continue to procure agency staff – i.e. pay parity, a managed service or Regulation 10. • Implementation and on going management of Day 1 rights Agency Workers Regulations
Pitfalls and Potential Solutions Little or no understanding of the Regulations across an organisation Ensure all areas of your business that hire temporary labour are fully briefed on the Regulations – include Hiring Managers, this is not just a topic for HR, good suppliers will be able to support with this. Insufficient sharing of information between hirer and suppliers at start of assignment Manage and allow the flow of data to your suppliers, respond to requests for information promptly. Be prepared early on for what will happen after 12 weeks and inform your supplier. Little or no monitoring of agency data i.e. start / end dates, previous work history Engage with your suppliers, ask to see their systems and methods for tracking AWR data. Agency Workers Regulations
Pitfalls and Potential Solutions Limited resources to undertake the additional administration tasks associated with AWR Develop strong relationships with agency suppliers, work with them, provide the info they require and they should be able to assist with the extra administration. Swedish Derogation (Regulation 10) Don’t allow agency suppliers to push you along this route. Be prepared for additional costs associated with pay between assignments and notice periods. Requires true expertise to arrange so enter into only if you are confident your supplier has a real understanding of the requirements. Engaging and releasing temporary staff every 12 weeks This is ok if you can prove this has always been your pattern of hiring i.e. around production peaks and troughs but remember ‘Anti Avoidance’ clauses are in the Regulations. Agency Workers Regulations
Pitfalls and Potential Solutions Claims of Pay Parity Embrace do not ignore - it may result in a potential claim, engage with your agency supplier as soon as possible. Entitlement Who must When can the agency Liability Penalty provide worker challenge written info their treatment on assignment Day 1 Rights Hirer Day 1 . The hirer has Client Up to 2 weeks 28 days from receipt pay of the written request to respond in writing Week 12 Rights Agency in After 12 weeks has Agency or Loss of earnings first elapsed . If a response anyone and instance; is not received from involved in up to £5,000 then hirer the agency within 30 the chain of days of making the supply, e.g. request then the Umbrella, Negative PR A number of relatively high profile companies have been criticised in the media for their handling of AWR specifically where they are seen to avoid equal pay – work with your suppliers and unions (if applicable). Agency Workers Regulations
One Year On…… Agency Workers Regulations
Industry Feedback REC Survey reveals; • Only 1 in 10 employers had stopped or significantly decreased the use of temporary staff since AWR introduced. • Of the 28% of employers who said they had reduced usage two thirds said is was due to the continued economic uncertainty and not as a result of AWR • Overall satisfaction of being a temporary worker increased from 43% to 52% • Employer satisfaction with staffing agencies remains high at 92% Agency Workers Regulations
REC Survey Results Agency Workers Regulations
REC Survey Results Agency Workers Regulations
REC Survey Results The REC ‘JobOutlook Survey’ posed a question that specifically quizzed employers about their assessment of the impact the AWR has had one year on. The results revealed; 4 2 3 47 44 Agency Workers Regulations
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