Although it became law in December 2010, it is effective from 1st October 2011. The Agency Workers Regulations (AWR) is intended to give fairer working terms and conditions for temporary workers. The regulations include Executive Interims and some consultants unless they can demonstrate that they are working through their own limited company and are in business on their own account.
The main question is who the regulations will affect. Essentially all temporary workers including interim managers but not if they are operating through a limited company and if the contract clearly states that the client-candidate relationship is that of a business hiring the services of another business.
It would seem clients are not planning to make any significant changes to the way they use contractors.
Research shows that flexible resourcing through the utilisation of Executive Interims will continue and hopefully increase but organisations remain unsure or even unaware of AWR implementation.
According to the REC’s latest Jobs Outlook, a surprisingly high number of employers - 23% remain unaware of the new regulations. A further 44 % are still undecided about what changes they are planning to make to their workforces ahead of implementation on 1st October.
The survey also shows that 42% of employers are not planning to make any significant changes to the way they manage and use agency workers. This would seem to reflect the fact that on closer examination, the regulations will not have the significant impact that may have been feared.
The importance of contracts remains higher than ever. It is crucial your contract is watertight to protect you and the client and that for anyone embarking on a career as an Executive interim, the need to operate through your own limited company is more important than ever.
By Steven Wynne