E Response Awr Update Presentation 15th February

Agency Worker Regulations

Smarter recruitment & workforce solutions.

Joe Alekna – Operations Director

Agenda

AWR Models of Supply Implementation Issues & Myths eResponse Systems & ComplianceWhat it’s meant for Employers

AWR – A reminder of the basics…

AWR Will give agency workers the right to the same basic working and employment conditions they would receive if they were engaged directly by an end user hirer to do the same job.

Calculating the 12 week qualifying period

Day 1 rights

What does Pay Include:

What does Pay Exclude:

AWR – A reminder of the basics continued…

Definition of the new hirer

Is it a Substantially different role

Liabilities & Remedies

Agency Worker Regulations

• Qualifying week landed 26th December (Over 100 days since AWR came into force)

• Resulted in no significant flurries of queries and requests for information from workers ( eResponse have had 4 temporary workers request further information so far out of a 400 temp count )

• In every case raised there has been no further action• No specific bodies such as employment agencies Standards

Inspectorate (Part of BIS) or GLA tasked with monitoring that businesses are complying with the regulations.

• The regulations will be enforced by individuals making claims through employment tribunals.

Models and Supply Types.

Models and Supply Types

Services Portfolio

• Standard way (No change)• Training grades (French Extension)• Swedish derogation• Managed Service• Department Outsource (Temp Only

Zones)

The Standard Way…

Services Portfolio

•Establish a Comparator or identify what the hirer would pay if the individual (s) was recruited directly to do the same job

•Complete information request details form

Training grade – French Extension

Services Portfolio

This option involves end users implementing a “training grade” for all new starters, whether they are temporary or permanent workers.

This model is a common model in France where for example the 1st 12 months of any new workers employment / engagement, they receive lower pay and fewer benefits because they are being trained

Regulation 10 provides an option for temporary work agencies to be exempt from the requirement to provide parity of pay (As defined) to agency workers under the Regulations, known as the “Swedish Derogation”.  Pay between assignments – Minimum of 4 weeks

The Swedish Derogation

Services Portfolio

Services Portfolio

This Option aims to lift the labour provider out of the definition of “Temporary work agency” Under the regulation 4 defined as (Our Emphasis): “A person engaged in the economic activity, public or private, whether or not operating for profit, and whether or not carrying on such activity in conjunction with others, of: a) Supplying individuals to work temporarily for and under the supervision and direction of hirers; or b) Paying for, or receiving or forwarding payment for, the services of individuals who are supplied to work temporarily for and under the supervision and direction of hirers.”

Managed Service

Department Outsource (Temp Only Zones)

This is where a business has a “Temp only Zone” and is used in many cases where a company works with big peaks & troughs and as a result is easier to flex Temporary Workers as and when necessary

Services Portfolio

Implementation issues & Myths

Implementation & Myths

• Sharing information – A Potential Problem• Its end of Temporary Labour!!• Its no longer viable to use temporary labour!!• Limited company Contractors (The genuinely self

employed!!!!)

REC/KPMG shows strong demand for flexible staffing!

65% of employers have made no changes in the way they use Temporary Labour!

eResponse Systems & Compliance

Accruing holiday pay

Calculating the 12 weeks

Terms Of Business Update

The Employers Perspective…

Customers Perspective

Extra Burden?

•Something Else to Consider

•Pay grades disclosed

On-going Economic Uncertainty continues to influence hiring patterns. Temporary & Contract staff continues to provide an attractive option and a means of bringing in the right skills at very short notice

84% are planning to grow or keep their existing Agency workforce levels the same

Customers Perspective REC & KPMG Stats

No Change

No Change

Area to address

No Change

Thank youContact

Joe AleknaOperations Director

[email protected]

01527 66688 ext 408