As reported earlier this week, the Agency Workers Regulations came into play following the first 12 week period last month. Whilst it was initially thought to have not had much of an impact, a number of leading recruitment groups believe that this is not the case.
A survey from the Association of Professional Staffing Companies (APSCo) has found that 29% of organisations are likely to terminate contractors early due to the AWR. On top of this 19% of recruiters said that AWR is contributing to a decreased demand for contractors; and 43% said this impact will be greater following the expiration of the first 12-week qualifying period.
APSCo Chief Executive Ann Swain confirmed that the AWR is cleary having an impact, even with top end contractors, due to the increased costs the regulations bring. She said that “Even where temps and contractor are better paid, or outside the scope of the Regulations entirely, there is still a significant compliance burden for both hirers and recruiters.”
She also confirmed the problem between employers and recruiters, which we reported earlier this week. “A lot of recruiters are saying that getting the information from hirers, which is crucial from a compliance perspective, is proving difficult.”
The potential casualties from the AWR, which Ms Swain suggested as being in the tens of thousands, have been seen already in the REC’s latest Report on Jobs, which found that temporary jobs fell for the first time over two years in December.
ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor
