Agency Workers Directive - egos®


The present position

The Agency Workers Regulations 2010 come into force on 1st October 2011.  A copy of the regulations (updated by the 2011 amendment regulations) can be found here.

At the time of updating this page, the most recent official guidance was that published on 27th May 2011 and is marked 'URN 11/949' on the last page.  A copy can be found here.  Additional guidance in relation to supply teachers was published at the beginning of August 2011, and can be found here.

Consequences for Freelancers, for their end-clients, and for agencies and umbrellas in the supply chain

The Agency Workers Regulations may be viewed by some as representing yet more risk and administrative burden for business – but for the freelancer, they offer opportunity. 

 

It is clear from the regulations that they simply do not apply in the case of freelancers operating their own businesses. 

 

They also will not apply where the individual is not working under the control of the client, and where this position is supported by the contract.

 

These aspects of the regulations therefore offer freelancers a competitive advantage:

 

      the wise end client should be more encouraged to look to freelancers to satisfy their needs

 

      the wise end client now also has something to gain itself by engaging freelancers on IR35-friendly contract terms which are not unnecessarily self-indulgent in terms of reserving rights to control – since where there is no supervision or direction by the end client, the regulations will not apply.

 

PCG’s guide to the Agency Workers Regulations is focused on giving the reader a clear understanding of where the regulations do and do not apply.  I was happy to play a small part in its creation.  A copy of it can be viewed here.

Consequences for other workers, end-clients, and for agencies and umbrellas in the supply chain

Changes will be needed to working practices to accommodate the requirements of the regulations.  We can help, both with strategic planning, and with implementing the chosen approaches.

Summary

The regulations make changes to the way in which agencies, umbrellas, and end clients will have to operate and so will affect freelancers and contractors.

If you need advice on issues relating to the regulations please contact us.


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This page was last updated on 15th August 2011.

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