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23rd May 2011
AWR could be bad news for businesses
A contractor specialist has predicted that new rules to be brought in under the Agency Workers Regulations (AWR) could cause problems for businesses, agencies and umbrella companies.
The legislation means that contractors and agency staff will gain some of the same rights as permanent workers in some situations. In specified circumstances contractor pay and terms and conditions will have to be on a par with those of permanent workers, although this will depend on a number of factors, such as whether the contractor is classed as an agency worker or a sole trader.
These rights for agency workers and contractors have therefore been dubbed ‘permie perks’. Whilst on the face of it, the new system appears to be a positive move for workers, Gerry McLaughlin of ITcontractor.com has said that they might not be such good news for employers and the ramifications could have knock-on effects down the scale.
He commented, "This will cause a problem for employers or clients so it will cause a problem for the agency and the umbrella company. Most contractors would rather just be left alone.”
The Agency Workers Regulations come into force in October this year.
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