How the AWD Affects Contract Workers
Often abbreviated as ‘AWD,’ the Agency Workers Directive was established to provide a semblance of equal rights to contract and temporary workers who are not employed in permanent positions by employers. As of October 2011, the UK instituted directives so that in some areas of employment, temps and contract workers would enjoy equal benefits if placed in the same position with the same company for a period equal to or greater than 12 weeks.
These directives don’t affect whether or not that contract worker will be made permanent but they do address equal pay, the use of company facilities, sick leave, holidays and hours worked. Conversely, these new rules don’t apply to maternity/paternity leave and they don’t apply to those who completed their 12 week qualifying period on or before 1 October, 1011.
Previously, temporary workers and contractors could be employed by the client (company) indefinitely without the benefit of equality in regards to working conditions. Whilst a UK umbrella service handles payroll, taxes and National Insurance deductions, they most often are not in the recruitment business. However, umbrella companies should work closely with recruitment agencies to keep things in compliance with AWD.
Unfortunately, there are a great number of so-called umbrella companies that don’t pay heed to these directives and leave them up to the recruitment agencies or contractors to see to strict adherence. On the other hand there are reputable umbrellas such as Pulse Umbrella that will work closely with both recruitment agencies and contractors to ensure AWD are followed.
In the end, AWD affects contract workers by making provisions for them to be treated with many of the same rights and benefits as permanent company employees. Government believes that anyone doing equal work should receive equal pay and respect after the qualifying period is met. No one can guarantee that the company will hire temps in permanent positions, but at least they will have the same access to job vacancies through information systems that regular employees would have.
