Ahead of today’s comprehensive spending review, the government has announced that the Agency Worker Regulations will not be reviewed and will come into place by October 2011, despite rumours that the regulations may be discussed.
The Agency Worker Regulations will mean that temporary workers receive equal benefits as permanent staff after 12 weeks at a company. Over the next 12 months the government will be working to offer guidance, alongside the REC, to “provide clarity for recruiters and employers”.
The regulations had been disputed by the REC and the FCSA as both groups were worried about the lack of clarity and the possibility of businesses reducing temporary positions.
The FCSA also commented, “We hope that the future AWR guidance will reflect an understanding of the flexible workforce which for far too long has been put into one homogeneous group where in fact it is a far more complex set of populations within the workforce.”
The Association of Professional Staffing Companies (APSCo) are feeling confident that the Agency Workers Regulations (AWR) will not apply to limited company and umbrella company contractors. They say the latest indication from the Department of Business, Innovation and Skills (BIS) is that individuals who are genuinely in business on their own account will be excluded from the regulations, hence signalling that the regulations may not apply to limited company and umbrella company contractors.
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