Agency Worker Regulations – a guide for agencies

Agency Workers Regulations (AWR) are a set of UK laws introduced back in 2010, which aimed to provide agency workers with more employment rights, specifically those temporary workers hired through employment agencies. These regulations which came into force from October 1^st 2011, ensure that agency workers receive the same equal treatment as comparable permanent employees.

In this guide we take a closer look at AWR to help agencies understand what they need to know, and how SG Umbrella can provide support with everything relating to AWR.

What does AWR include?

AWR provides temporary workers with the following:

1. Day – one rights

From the first day of a worker’s contract / assignment, they are entitled to:

• Equal access as permanent employees to amenities and facilities, which can include (but not limited to) the use of childcare facilities, transport services, canteens, etc.
• Access to job vacancies – therefore all staff must be informed of any job vacancies at the company they’re currently working for, to ensure the fair treatment of both permanent and temporary workers and that opportunities are open to all

2. 12-week qualifying period

Once an agency worker has completed 12 consecutive weeks of work within the same role for the same employer, they are then entitled to the following:

• Pay – they are entitled to receive the same pay as a comparable employee, which also includes overtime rates, holiday pay, bonuses (that are directly linked to the worker’s performance), and shift allowances and allocation
• Working hours – covers the same rights as working time, length and number of rest periods and breaks
• Holidays – annual leave entitlement must match those of permanent employees

3. Pregnancy and maternity rights

Pregnant agency workers also have the following rights:

• Paid time off for antenatal appointments after the 12-week period
• The employer is required by law to find the worker alternative work or paid leave if the worker is no longer able to fulfil their role due to health and safety reasons

4. Anti-avoidance measures

Relates to the provisions put in place to prevent employers from deliberating manipulating contracts in the attempt to avoid fulfilling a worker’s rights (for example, changing a worker’s role just before the 12-week qualifying period).

5. Who’s covered?

AWR relates to:

1. The agency worker – the individual with the contract with the recruitment agency and are supplied temporarily to work for a client
2. The actual employment agencies and the companies that hire the workers (eg hirers)
   

   
   Exceptions

There are some types of self-employed individuals which aren’t covered by the AWR, such as those who are genuinely in business on their own account:

• Limited Company directors or those who have permanent contracts of employment with their agency if they’re paid between assignments (known as the Swedish Derogation Model – although this was abolished in April 2020)
• Agency workers who have a contract that’s less than 12 weeks
• Agency workers with a higher hourly rate (higher than that of a direct recruit or comparable employee)
• Agency workers with a unique role, that’s non-comparable with those directly recruited, or comparable employees
• All other contractor types will need to be individually assessed for their AWR risk

AWR – how SG Umbrella can help

AWR can be confusing, especially if you’re new to the world of recruitment. Here at SG Umbrella our team of expert contractor payrollers are well rehearsed in AWR legislation, and are able to offer their support and wisdom whenever needed. If this sounds like the type of support you need, get in touch today to find out more.