Umbrella company contractors were probably relieved to hear Vince Cable announce that the government intends to review the administrative effects of AWR within the next 18 months.
According to latest data from the REC, the recruitment industry in the UK grew by 25% in the last 12 months and a lot of this growth can be attributed to the increase in demand for PAYE umbrella company contractors.
Research by the Association of Recruitment Consultancies suggests that the contractor workforce in the UK may be about to suffer because of the implementation of AWR.
Employers are increasingly turning to the flexible workforce, including freelancers, to help them survive during the current turbulent economic climate.
The Agency Workers Regulations should not prevent organisations using umbrella company contractors to build a flexible workforce, according to the REC.
Young people, including those who intend to work as a contractor through an umbrella company, think they will get a better job if they persevere with their education and obtain good qualifications.
Umbrella company contractors may be interested to learn that the government has confirmed that it has no plans to make any changes to the Agency Workers Directive that came into force on October 1st.