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Agency Workers Regulations
The Agency Workers Regulations 2010 (‘AWRs’) came into force on 1 October 2011.
The key aspects of the new law are:
• It only applies to “assigned temporary workers” – that is agency workers placed through an employment business (better known as “temp agencies”). During the consultation process which led to the Regulations being enacted, the Government also clarified that the Agency Workers Regulations will also apply to those who provide services to clients through an umbrella company or personal services company provided they are not a director or shareholder in the umbrella company.

• The basic working and employment conditions of assigned temporary workers have to be no less favourable than if they had been recruited by the client (the hirer) direct to do the same job after 12 weeks (‘Equal Treatment Rights’).

• The Equal Treatment Rights will apply to:
o Remuneration
o Some bonuses (related to individual performance)
o Paid holiday
o Shift allowance
o Working hours and rest breaks
o Overtime payments
o Vouchers or stamps with a monetary value, such as luncheon and transport vouchers
o Maternity leave

• Agency workers will not be entitled to Equal Treatment Rights in relation to certain payments and rewards including:

o Profit share schemes

o Pay in respect of maternity, paternity or adoption leave

o Occupational pension schemes

o Pay-related rights linked to longer-term reward and retention (e.g. contractual notice pay, increased annual leave, etc)
• Assigned temporary workers should also be given access to collective facilities such as the canteen, childcare facilities, any transport service from day one. Less favourable treatment in respect of these rights is possible provided that this can be objectively justified.
• Assigned temporary workers should be informed of any relevant permanent vacancies in the employer’s organisation from day one. However:
• there is no requirement to favour agency workers in selection procedures
• this right does not apply in the context of a genuine headcount freeze
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