Legal Update - AWR will not be amended or supspended
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6.10.2011
Despite fears relating to its potential impact, The Agency Workers Regulations (“AWR”) will not be amended or suspended The government have stressed that they have no intention to amend the AWR or suspend its implementation. The AWR is still due to come into force on 1 October 2011. This declaration came after a recent report in The Telegraph which suggested that Downing Street had commissioned the advice of Martin Howe QC. Allegedly they had been exploring the legal avenues by which they could moderate the potential impact of the AWR. Supposedly these had included suspending the AWR indefinitely, watering down its provisions, or introducing new legislation. According to The Telegraph, Number 10 sought this advice in response to accusations that the AWR was a “gold plated” version of the original Directive. Containing too many additional and unnecessary rules, critics had highlighted the AWR’s potential to undermine business and derail economic recovery. Arguably, by giving more than one million temporary workers the same rights to basic working and employment conditions after a 12 week period as directly employed workers; the AWR is estimated to cost business almost £1.3 billion a year. As 54% of UK businesses currently employ temporary workers for more than 12 weeks at a time, the magnitude of this potential impact is substantial.
Another related and tangible concern has been the problems the AWR could pose for the temporary workers it seeks to enfranchise. A recent survey has reported that up to 500,000 temporary employment contracts could be terminated when the AWR come into force because businesses will want to avoid increased costs. According to the report 33% of employers said they would terminate agency workers’ contracts to avoid the 12 week qualifying trigger for equal treatment.
Nevertheless, even if the more far reaching fears prove unfounded, there is still a rising uncertainty amongst businesses as to how they will react and adapt to the AWR. The report suggests that one in four employers still do not feel they know enough about the AWR and its cost impact to their business.
This bulletin is for general guidance purposes only and should not be used for any other purpose.
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