Following a review of the Agency Workers Regulations 2010, the Government announced in October 2010 that these new rules will be coming into force as previously drafted. The implementation date will remain 1 October 2011.
Are you aware of the challenges and risks for your business?
Overview of the regulations
The Regulations are being introduced to enact the EU's Agency Workers Directive in the UK. The main feature of the Directive is the requirement of ‘equal treatment’ for agency workers engaged on assignments lasting 12 weeks or more.
The employment business (agency) will have primary legal responsibility to ensure compliance with the Regulations, but in reality if hirers do not provide the information required they could find themselves involved in employment tribunal litigation.
What are the definitions of an ‘agency’ and an ‘agency worker’?
In brief, the Regulations define an ‘agency’ as an organisation which is engaged in ‘supplying individuals to work temporarily for and under the supervision and direction of hirers’. An ‘agency worker’ is an individual who is supplied to work temporarily for and under the supervision and control of a hirer and has either a contract of employment or self-employment with the agency.
In most cases we would expect tax and NICs to be collected under PAYE via the agency’s payroll.
What does this mean for your business?
PwC have developed a series of tools and methodologies which will help you to:
If you would like to find out more about the Agency Workers Regulations and the impact that this new piece of legislation will have on your business, please contact Nick Willis.