Agency Workers Regulations

‚ÄčThe legislation impacts upon interims using an umbrella company but tends not to affect those working through their own limited company. The directive was introduced to protect the working and employment conditions of contractors, temporary workers and freelancers and had a wide range of implications for the staffing sector and its supply chain.

You are classed as an 'agency worker' if your work through a temporary work agency (e.g. umbrella company) on a temporary bases. Provided the practices of limited company contractors do not put them inside IR35, they will not be affected by AWR.

AWR entitles interims access to the company's available facilities (canteen, gym membership childcare facilities etc) and information on suitable job vacancies from tday one of their assignment.

After 12 weeks in the same assignment the temporary worker becomes entitled to the same pay (holiday pay, bonuses, commission etc) and working conditions (annual leave, rest breaks, working time) as a permanent employee in a comparable position. There are some conditions regarding what constitutes pay for a temporary worker and full details surround AWR can be found here.

It is important to note that it doesn't matter if you are working full time or part time, your rights are based on those of a comparable worker - ie someone directly recruited by the hirer to do the same job at the same time. If there are no comparable employees however, you are not entitled to equal treatment. If this is the case, you are entitled to, and should, find out the hirer's terms and conditions for someone directly recruited.

Find out more about AWR by contacting our team.

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