Demand for Skilled Contractors Remains Strong but AWR is Harming Those it Aims to Protect

A number of recent surveys have shown that demand for contractors working through umbrella companies remains strong despite the introduction of the AWR in October. However a new survey from the Association of Recruitment Consultancies (ARC) suggests that the directive may be badly affecting the very people it was meant to protect – relatively unskilled temporary workers.

The ARC poll reveals that over half its corporate members believe their clients – employers who hire many thousands of temporary workers – are planning to cut back on temporary staff over the next twelve months and do not intend to replace them with permanent roles. Moreover, over 50% of respondents think that employers will increasingly restrict temporary assignments to below 12 weeks in order to avoid the costs of full employment rights, which become mandatory under the regulations after this period has elapsed.

PAYE umbrella workers are unlikely to be affected by the trends. Their skills remain in high demand and with other temporary workers being axed without permanent replacements, work will still have to be done in order for the companies to survive. But, as ARC Chairman Adrian Marlowe pointed out, the survey shows that “rather than protecting agency workers, the regulations are actually undermining the job market for them, yet increasing the administrative workload.”

Slating the regulations for “doing more harm than good”, he added “This isn’t about not wanting agency workers to have more equal rights; it is about retaining flexibility. We need a system that supports agency workers and businesses alike, and these regulations are clearly not benefiting either.”

He called on the Government to conduct an early review of AWRs’ impact.

Source:

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