Overview Agency Works Regulations Questions & Discussion What can we do for our clients next?...
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Transcript of Overview Agency Works Regulations Questions & Discussion What can we do for our clients next?...
Supporting our customers to comply with the Agency Workers
Regulations
Agenda
Overview
Agency Works Regulations
Questions & Discussion
What can we do for our clients next?
• Introductions• Update• Purpose
• Overview & Timescales• Options• Preferred Options
• Implementation of IT & Management systems• Implementation of robust contracts• Signed agreements with our clients
The implementation of the Agency Workers Regulations (AWR) in October 2011 will require clients and Recruitment Agencies to work in partnership to ensure the regulations are adhered to.
The Regulations are the most important legislation to affect employers since the Conduct of Employment Agencies and Employment Businesses Regulations came into force in 2003.
As members of the REC we will keep our clients abreast of all legal implications and changes.
Presently we are evaluating the impact on our clients.
We will ensure our Planning Tools, Payroll system and Driver Passport System will ensure you are in compliance with the new legislation.
We will also comply with any in-house systems our clients use going forward to monitor the new legislation and indemnify our clients against any liability associated.
AWR Compliance & Monitoring
Marian Butterworth- Operations Manager
Gail Radley – Operations Director
Charlotte Harper – Financial Director
Richard Fenton - Operations Manager
The Team
4 Locations
500 Temporary Workers
200 Permanent Workers
2nd Tier Agencies
Our Business
Strategic Approach
Aim to Create Savings
Enhances Relationship
&Creates
Partnership
1 Invoice
ContractValue Partnerships
Our Objective
Reduce Exposure
Visibility and Control
Main Supply
Enhance Relationships
& Create Partnerships
Legal Compliance
The Agency Workers Regulations
PRE 1st SEPTEMBER 2011AWR IMPACT ASSESSMENT
COMPARATOR
Implementation
Agency Workers Regulations 2011
Agency Workers Regulations 2011
Agency Workers Regulations 2011
Agency Workers Regulations 2011
Agency Workers Regulations 2011
Agency Workers Regulations 2011
1st October Agency Workers get two sets of
rights Rights After 12 Weeks•Pay•Working Time•Annual Leave
‘Day One’ Rights•Access to collective facilities•Information on relevant vacancies
Agency Workers Regulations 2011
Options
Pay parity with
permanent workers pay and benefits (not bonus)
Pay-between Assignments
True Self Employment
Terminate before 12
weeks
Companies Directly engage Temps
• 12 weeks after 1st October through Companies
•Drivers must meet the criteria & adhere strictly to our advice
•Regulation 10 “Swedish Derogation” for PAYE Drivers only
•Un-welcome addition to Perm Workforce•Reduces flexibility
•Does not fit with Operational needs or Ethics
Agency Workers Regulations 2011
Why?
Pay between assignments
Swedish Derogation
Demand
Longevity
Liability minimal
Swedish Derogation
(Which Workers?) The
Clients and H&G to confirm
Workers supplied on Pay
Between Assignments
Contracts
Workers signed to Pay Between Assignments Contracts by 1st September (which ones?) and
reporting to and H&G on numbers signed
Contractual Commitment
Required
Indemnity from H&G for losses incurred where workers
supplied without Pay Between Assignments Contract occur
Our approach
H&G understand that our clients will require us to manage the AWR for them. We expect to demonstrate our knowledge of
the legislation and accept the need to invest heavily in our IT infrastructure.
The popular consensus throughout most of our clients is the derogation route which we have been trialing by adopting a “pay between assignments
philosophy”
AWR Monitoring
Operational commitment
to assignments of 16 to 20 hours per
week
Express waiver of
Regulation 5 pay right Pay-between
assignments for minimum of 4 weeks
Employment Contract with
H&GEmployment
Contract defines
suitable work for worker
How it works
AWR - Conclusion
H&G has installed robust technology to ensure legal compliance.
• Has bespoke client terms in place for all legally compliant options.• Has legally compliant terms in place for the supply of mobile &
general workers through a derogation model paid via PAYE.• Has legally compliant terms in place for the supply of mobile &
general workers paid via umbrella companies via derogation model.• Has legally compliant terms in place for Ltd company contractors
who have opted out of the AWR.• Has legally compliant comparator contracts for PAYE workers.
All our contracts (terms & conditions) are viewable on our AWR portal, please go to www.H-G-Recruitment.com or email questions to [email protected] for an informed answer by our legal department.
LTD Model
Client
H&G = ControlTerms
P/S (LTD)
Client = Control (no Direct Relationship
H&G- Terms
- LTD Co.
Worker (SE / PAYE)
Terms
Umbrella – (Paye Day)
Client
H&G
Terms
Paye Day
Worker
Terms
Terms (Over arching)
Q
Frequently asked Questions & Answers
Q If a client pays double or treble time to its permanent employees for working a Bank Holiday after the 12
weeks, will they have to pay agency workers for the same rate?
A Yes, equal treatment after 12 weeks includes payment at the same pay rates. Pay includes holiday pay, shift
allowances, overtime rates. It does not include bonuses relating to company performance or long service. (Straight forward supplied on PAYE)
Q When preparing our contracts for drivers within the scope, can a contract be for a minimum of hours, usually 4
per day? Can we issue part-time contracts guaranteeing a minimum of hours? Currently we guarantee a 4 day week but it is a gentleman’s agreement. 8 hours per day, that would be a 36 hour contract? This would form the basis of the Swedish derogation. Do you think this is appropriate or too onerous?
A The Regulations do not change the status of agency workers. They are still workers unless you adopt the
Swedish derogation model, in which case they become employees. The Swedish derogation model (Regulation 10 of AWR) provides that where an agency worker has a contract of employment with the agency (which meets the specific conditions set out in Regulation 10 of the AWR), then that worker is not entitled to equal pay. However, the agency worker will still be entitled to equal treatment in respect of working conditions (rights to know about vacancies and rights to on site collective facilities e.g. canteen) as all other agency workers from day one.
Two key factors relating to the Swedish derogation are that where an assignment has terminated, the agency must take reasonable steps to find suitable alternative employment for the agency worker. Where the agency cannot find suitable alternative work, the agency must provide the agency worker at least 50% of what they were being paid in their previous assignment, provided the amount is not less than the National Minimum Wage (£5.93). The agency must do this for a minimum of four weeks before it can terminate the contract of employment. So, you cannot fix the contract in the way you are suggesting – the amount you have to pay in between assignment depends on the amount they were paid in the previous assignment. The Swedish derogation option is only suitable where you can guarantee a volume of work and where you are prepared to accept the additional liabilities of a contract of employment (e.g. unfair dismissal and redundancy payment rights). If there is not a large volume of work, it would be extremely expensive. (Hence the need for continuity, regulatory and commitment)
Q Our client wishes to know if he pays his own driver’s meal allowance will he have to pay his agency the same
after 12 weeks? (If the client classes this as expenses then, no the agency worker is not entitled).
A It is likely this will fall under the equal pay provisions and that he would have to pay it to agency workers too.
We are awaiting detailed guidance on what the Government means by ‘pay’ (Drivers on PAYE would be entitled to LV not expenses e.g. vouchers, that can be turned into cash are seen as PAYE)
Q If he works his driver’s annualised hours’ contract but however, only has 36 hours available, the driver gets
paid 48 but owes the client 12 hours free during a busy period. How could we safeguard that the driver would be available when it was next busy? Can the contract stipulate that they must work on specific dates? Or that if they have to give us notice before leaving they would pay us back from the final pay?
A The Regulations do not affect the status of the workers so you can continue as you have been previously unless
you adopt the Swedish derogation model. In that case if you asked a driver to carry out certain work they would be contractually bound to do so.
Q If a client pays overtime after 12 hours basic to their own drivers, would they have to pay overtime to their
agency on the same basis?
A Yes they would (Unless under Swedish or genuinely self employed).
Q If a client guarantees a minimum hour day 9:- 8 to his own driver, does he have to guarantee the same to an
agency worker?
A Yes, they have to be paid the same after 12 weeks’ work in the same role with the same hirer. (Lower minimum
hour guarantee is ok under the Swedish derogation only).
Q If the drivers are employed by us and work at a site on a regular basis, who does the disciplinary in the event
after 12 weeks?
A Under the Swedish derogation model the agency would be the employer and responsible for discipline although
you would need input from the client. If you do not adopt the Swedish derogation model you continue as normal. (Terms of business would insist that client participation was essential to carry out a process)
Q If different clients have different procedures, do we have to have a separate contract for each one?
A You will have your own disciplinary procedures with your own employee drivers under the Swedish derogation
model; you will just need to inform the drivers what the rules of each workplace are in the same way as now. (Agency has its own set of procedures under the Swedish derogation PAYE, drivers would still be workers then they would not be subject to discipline).
Q When on site working under the direction and control of the client, is the welfare the client’s responsibility or
the agency? e.g. lateness
A In the first instance, it is that of the client. However, the client may refer matters to you since the agency has
the contract with the driver and you would be responsible for disciplining if you are adopting the Swedish derogation model. (Straight forward the client PAYE no disciplines. Swedish derogation agency discipline but clients must provide information trail).
Q If discipline is the agency’s responsibility, what responsibility does the client have in terms of providing
accurate information?
A None unless you make this a contractual requirement (terms of business)
Q Many clients are talking about going down the Swedish derogation route as their preferred route. Do you have
an example contract for this?
A No, but it would be relatively straight forward to amend an existing contract of employment to specify that the
driver is entitled to a certain minimum amount of work and pay between assignments. As for pros and cons, see response to point 2. (The REC will be publishing model contracts)
Q If a worker wants to work for multiple agencies how does this work?
A I am not sure whether you mean in the context of the Swedish derogation route, or just generally. Workers may
work for multiple agencies and may have contracts with each agency. If they are in the same role for 12 weeks but supplied by different agencies they will be entitled to equal treatment after those 12 weeks. Therefore it is very important when they start working for the agency that you check where they have worked before and for how long.
Q How do notice periods work?
A These are only relevant under the Swedish derogation model. You would not normally have notice periods with
agency workers and this will not change under the new legislation unless you adopt the derogation which will mean that, as set out above, if you are unable to supply new work, then you must pay at least 50% of the pay the worker was receiving on the previous assignment, as long as this is not less than the National Minimum Wage, for a minimum of four weeks.
Q If all the agencies involved needed the individual on the Bank Holiday and the contract included Bank Holiday
working, how could we guarantee the worker’s services? If the worker called in sick, we would not know if he or she was working for one of the agencies.
A The legislation does not affect this situation unless you use the Swedish derogation model in which case you
would ask the employee to work on a specific day. Otherwise you would ask the worker to self-certify that they were sick if they phone in sick as would be normal practice.