Umbrella Companies | 90% of employers still to set a plan for implementing AWR

90% of employers still to set a plan for implementing AWR

The majority of employers are still not prepared for the impact the Agency Workers Regulations will have on their business, according to a new survey from the REC.

The Confederation’s latest Jobs Outlook Survey discovered that 70% of employers are aware of the regulations but only 10% have planned to make specific changes in the run up to the first of October implementation date. 42% of employers said they were currently “weighing up their options.”

The Agency Workers Regulations will provide temporary workers with some of the same rights as their permanent counterparts once they have completed 12 weeks continuous work in an assignment. However, interesting research from the CIPD and REC has found that as few as 13% of temps will have their pay and benefits increased when current pay levels and short-term assignments are taken into account.

The REC’s head of policy, Gillian Econopouly, said that with so many employers unprepared for implementation, it’s up to recruiters to discuss the matter with their clients. Some employers will use the AWR as a catalyst for a review of their usage of flexible staff and this might lead to slight reduction in the number of temporary contracts. However, on the plus side, some businesses intend to increase the amount of temps they use over the coming twelve months.

The UK legal director of Ranstad, Ian Naylor, has warned that organisations that do not embrace the spirit of AWR risk losing out on talent.

He told companies that are looking at alternative supply chain solutions that their reputation might be damaged if workers believe solutions have been implemented solely to avoid parity with the permanent workforce. Naylor went on to point out that candidates are much more likely to be attracted to companies that embrace the spirit of the regulations.

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Image: 24 hours? I better take a nap by mike@bensalem

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