High End Contractors from Umbrella Companies Unaffected by AWR, REC Finds

PAYE umbrella experts specialising in IT contracting, along with other highly skilled freelancers, have not been seriously clobbered by the Agency Workers Regulations as some commentators had feared, according to the Recruitment and Employment Confederation (REC).

The REC has conducted a series of discussions with the Interim Management Agency on the impact of the AWR on the ‘high skills’ end of the temporary worker market recently. The verdict appears to be that, although some employers still entertain some misconceptions about the EU directive, many are aware of how to hold on to the most able and talented contractors. The AWR, which came into effect on 1st October, appears to have had little effect on highly skilled temporary workers after all.

The Swedish Derogation model is being used to retain skilled contractors, such as those working in the IT skills market, by keeping them on the books of a single agency rather than on several simultaneously.

Tom Hadley, the REC’s Director of Policy and Professional Services, commenting on the REC/IMA meetings, said:

“It is encouraging to see that the regulations are having little or no impact so far at the higher end of the market. However, we must not take this for granted and must continue to raise awareness amongst client organisations of what the regulations mean and do not mean. The demand for contractors and interim managers remains strong despite the AWR coming into force in October and we will continue to monitor the situation as we approach the first 12 week milestone.”

Source;

http://www.rec.uk.com/press/news/1895