The Agency Workers Regulations should not prevent organisations using umbrella company contractors to build a flexible workforce, according to the REC.
The REC insists that UK companies still have a variety of options including the Swedish Derogation Model that has already been adopted by Tesco. The Confederation stressed that this is a legitimate supply model and should not be viewed as a “get out clause”.
Kevin Green, the chief executive of the REC, said that AWR has encouraged employment agencies to design innovative recruitment methods. Some have hired their temps on a permanent basis, which is obviously good news for the temporary workers who will benefit from added job security.
With the Swedish Derogation Model, the recruitment agency becomes the temps’ employer and must pay its workers when they are in-between assignments. It’s not a way round AWR, rather it’s a great way of making sure the UK still has a flexible workforce, said Green.
The main issue surrounding the Swedish Derogation Model is one of commercial viability because it exposes agencies to increased risk and obligations. In order to make it work, there needs to be strong collaboration between recruiters and their clients.
He went on to explain that in the majority of cases, new supply models are not necessary. In the majority of sectors, temporary workers’ pay is on a par with, if not higher than, their permanent counterparts. Furthermore, around 50% of all temporary assignments are for less than 12 weeks and are therefore not bound by AWR.
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