PAYE Umbrella Contractors Will Survive AWR Unscathed, REC Suggests

For the religiously-minded, Christmas Eve is the day before the birth of the Saviour; but for many contractors working through umbrella companies or limited companies, 24th December 2011 marks the conclusion of the first 12-week qualifying period for temporary workers inaugurated by the Agency Workers Regulations.

PAYE umbrella contractors concerned about the implications of the regulations almost certainly have little to fear, according to the REC’s Director of Policy and Professional Services, Tom Hadley. He said “Nothing cataclysmic is going to happen on 24th December. However, the date is a significant landmark and will act as a further prompt for recruiters to ensure that they are as prepared as possible to handle any queries or claims from workers.”

The REC’s priority, he went on, was to ensure that misunderstandings about the regulations were “nipped in the bud” by ensuring that good internal mechanisms were in place. The prospect of a huge surge in activity, he believes, is most unlikely:

“Ultimately, the best way of avoiding any tribunals will be to be to ensure that there are clear and transparent communication channels between agencies, candidates and employers,” he said.

The number of tribunals arising from the AWR will, Hadley believes, be limited – a view which is in keeping with other prominent organisations such as ACAS. The demand for agency staff, which of course includes PAYE umbrella contractors, will remain strong, the REC predicts.

The REC plans to continue monitoring the impact of the regulations into the New Year and beyond.

Source:

http://www.rec.uk.com/press/news/1907