AWR will be Reviewed Within 18 Months, Business Secretary Tells Umbrella Companies

The Agency Workers Regulations continue to generate concern among several major industry bodies but PAYE umbrella contractors might take some comfort in a recent announcement from the Business Secretary that ministers will review important aspects of the EU directive within the next 18 months.

In a speech in which he also announced a review of the Conduct Regulations, Vince Cable declared his commitment to the UK’s flexible workforce, saying “…flexible labour markets are an essential component of a successful economy. It's essential they function in a way that employers have the confidence to take on new workers, create new jobs, so people out of work can get that first foot in the labour market.”

Limited though the review will be (it will focus on the effects of the regulations on paperwork, bureaucracy and reporting), Dr Cable’s comments were quickly welcomed by the REC.

The organisation’s head of Policy, Gillian Econopouly said “Our conversation with BIS officials made it clear that this will not be a review of the overall regulations. However, the commitment to identify and address unnecessary bureaucracy around AWR implementation is good news and something the REC has been calling for.”

Some experts, such as James Carmody of Reculver Solicitors, believe the EU directive will have a negligible impact on temporary appointments, as we reported recently, although some workers may find their assignments reduced in length. Skilled contractors working through umbrella companies are still likely to be sought after, however, as firms seek to keep permanent headcounts down while fulfilling important projects.

Sources:

1) http://www.paystream.co.uk/Umbrella-company-news/Govt-to-review-administrative-burden-of-AWR-umbrella-company-contractors-told.aspx?aid=801222938&cid=438036712

2) http://www.rec.uk.com/press/news/1869