24th October 2011

AWR advice offered to umbrella company contractors

Umbrella company contractors could be interested to learn more about the 'professional exemption' issue under the new Agency Workers' Regulations (AWR).

The regulations were introduced at the beginning of the month (October) and are designed to improve working conditions for contractors and temporary employees.

But there has been some confusion regarding the professional exemption application. The Recruitment and Employment Confederation (REC) has now confirmed that the statement relates to individuals are deemed to be excluded from the AWR due to their status as a professional.

Determining whether or not somebody falls into the category is done by looking at the relationship between the individual's profession and the agency. If either the “agency of the end user hirer is their client or customer” then arrangement is deemed to be one of professional exemption.

The REC added, “The provision is also dependent on the nature of the relevant contracts and the manner in which the individual provides his or her services.”

In addition, the employment group has assured umbrella company contractors and others that the provision makes no explicit statement suggesting that anyone who is in a profession is automatically excluded from the AWR.