Recruitment agencies expecting contracts to end early under AWR
The affects of the Agency Workers Directive are expected to be felt soon and could see many contracts ended prematurely according to new research from the body representing recruitment companies supplying professional workers.
A new poll from the Association of Professional Staffing Companies (Apsco) has found that 29% of the association’s members believe that contracts will be terminated early due to the Agency Workers Regulations (AWR).
The introduction of the AWR in October means that after 12 weeks in a position, temporary workers and contractors are entitled to the same rights as permanent employees, including equal payment rates, and some in the industry believe that due to projected increased costs for employers there will be less use of non-permanent staff.
Ann Swann, the chief executive at Apsco told the Financial Times: “The AWRs [are] clearly having an impact, even at the professional end of the market. Contractors and temps in areas such as IT or banking usually earn more than permanent staff, but this is not true for all roles, particularly at the entry level, where the AWR may lead to increased costs.
“The initial 12-week qualifying period expired at the end of December, so if these concerns are even close to being accurate, we could see tens of thousands of temporary workers jettisoned on to the labour market in January.”
Contractors looking for assistance with both the impact of the AWR and their finances should contact Pulse Umbrella for more information. As well as offering AWR guidance, Pulse Umbrella also provide an excellent financial solution to contractors from a variety of industries and sectors and there are a number of benefits available to Pulse contractors so contact us for more information.
Posted on 18 Jan 2012 in: Agency Workers Regulations
Tags: Agency Workers Regulations, Apsco, AWR, job prospects
