Umbrella Companies | Impact of Agency Workers' Regulations differs by sector

Impact of Agency Workers’ Regulations differs by sector

The impact of Agency Workers’ Regulations differs from sector to sector, according to one recruitment industry organisation.

The Recruitment and Employment Confederation says that the AWR’s introduction in October of 2011 has caused a slight overall drop in demand for agency workers and. However, the trade body says that temporary workers such as contractors working for umbrella companies have better prospects, as a recent REC survey found that more than 4 out of every 5 employers are interested in increasing how many contractors they use over the next three months.

As the 12-month anniversary of the AWR legislation approaches, the REC is says it is committed to keeping a close eye on the impact it is having on the employment sector. The organisation explained that the focus will be to evaluate the overall impact AWR has had on agencies, workers, and employers, based on recent discussions.

The REC’s Industry Research Unit is hard at work on an impact assessment report on behalf of the Department for Business, Innovations and Skills as part of the evaluation process, the trade body added. The new report will be released sometime over the next few weeks.

Agency Workers’ Regulations were first introduced in October of last year as a way to provide entitlements to temporary workers, who typically lack them due to the nature of contract work. However, AWR calls for any temporary worker in the same role for 12 weeks or more to be provided these benefits as if they were a permanent worker.

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