Agency Workers Regulations: Understanding

A recent poll by de Poel uncovered that almost half of HR professionals surveyed were ‘still confused’ as to the exact nature and impact the AWR will have on their business and therefore do not understand how this will shape their recruitment strategy. This figure has improved dramatically since October 2010, but it still makes for uncomfortable reading.

Employers have been trying to get a clearer picture of how the AWR will eventually work, and to understand key terms such as “substantively different” and “broadly similar”.

Implementing a successful strategy is grounded on ascertaining a sound knowledge and understanding of what you are confronting. Reactive organisations are much less likely to have an effective plan than those that are proactive. Understand the basics first, then use this knowledge to avoid the pitfalls that will inevitably arise in the future.

Part of a solid grounding is understanding exactly what the new legislation will mean. So, in the case of the AWR, for example, knowing what is meant by “12 continuous weeks” (being the qualifying period for the more significant rights that accrue under the AWR)? Are bonuses and redundancy payments caught under the AWR? Does the AWR impact upon independent contractors? What about overtime and sick pay? These are all factors that need to be fully understood for each individual worker, and only then can one implement an appropriate and, more importantly, tailor-made strategy.

Understanding all this on behalf of your own organisation is only half the battle. The next step is ensuring that your recruitment agencies have made adequate preparations.

Be proactive with the staffing agencies you use and make sure that they are all on the same page, from your job descriptions (this may be very significant 12 weeks into an assignment) to pay rates. Agencies not standardising rates of ‘pay’ across the board could cause you additional complications if you are unfortunate enough to be subject to a tribunal. In our experience, the most efficient way to ensure transparency and visibility over your temporary staff is to have a piece of software technology that can track temporary workers individually, especially when you have a situation where they are being transferred across multiple sites and locations, or switch agencies midway through a contract. Having the capability to use unique identifiers, such as passport or N.I. numbers, and to send alerts when workers are approaching the 12 weeks threshold, is one of the most important ways to reduce the additional financial and administrative burden imposed by the AWR. Systems like these can also use this unique data from the worker to cross reference with national databases to check, for example, the worker’s right to work in the UK. This can be invaluable and avoid possible fines of up to £10,000 per worker. Such fines can have an unexpected impact on a HR budget, which can impact on the recruitment strategy going forward.

If you are not using a neutral vendor service provider to audit your temporary recruitment agencies on your behalf, you should also be testing the knowledge of the staffing agencies you use to identify whether your recruiters have the understanding and knowledge to support your recruitment strategies. Could they answer basic employment legislation questions if you were to call them right now?

Find out, for example, if there is a dedicated person advising on the AWR and how exactly they intend to communicate its implications to your company.

Improved dialogue with your agencies during the AWR transition period will benefit the wider client-agency relationship in the long-term across all areas of your recruitment requirements.