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Nick Hobden
Partner
www.ts-p.co.uk
E: nick.hobden@ts-p.co.uk
D: 01892 701326
3 November 2011
© Thomson Snell & Passmore 2011
Agency Workers Regulations
A guide for hirers and agencies
- hosted by Hays
Nick Hobden
Partner & Head of Employment
2
Nick Hobden
Partner
www.ts-p.co.uk
E: nick.hobden@ts-p.co.uk
D: 01892 701326
Find me on Linked In!
Session summary
• Legal Obligations
• Implications of non-compliance
• Steps to help organisations comply
• Q and A’s
3
The Agency Workers Regulations 2010
• Came into force from 1 October 2011
• Covers ‘temps’ – Myth?
• No reasonableness test for temp to perm fee
• Non-statutory guidance from BIS
• Dept of Education – supplementary guidance
4
In scope/ out of scope
5
In scope Out of scope
Agency worker –
employed/personally
contracted to work (inc
umbrella companies) finding
work through…
Genuinely – self employed/
service providers/ PSCs –
STATUS?
…TWAs – employment
businesses - inc
intermediaries (vendors)
supplied to…
Managed service contracts
under supervision of TWA
not Hirer
…Hirer (end user)
supervising and directing
workers
In house (temp) staff banks
but not if supplied to H2
(secondment?)
Scope – out of scope
• Not permanent placements/recruitments
• But note equality of pay clause
6
Day one rights
• Two ‘day one’ rights:
• Right to be informed of relevant vacancies
• Access to “collective facilities and amenities” (on site)
• Comparators
• Same establishment
• Objective justification – collective facilities and amenities only
7
Equal treatment - qualification
• 12-week qualifying period = qualify for the same basic working
conditions as would be - as if recruited directly (Comparator?)
• When calculating the 12-week period:
• a move to a substantially different role or different H or a break of six
weeks or more between assignments = resets the clock
• Any break less than 6 weeks or due to holiday or sickness (up to 28 weeks)
= pauses the clock
8
Examples
• Working through multiple agencies
• AW with TWA1 at H1 – 6 weeks
• AW with TWA2 at H1 – 3 weeks later for 8 weeks
• Clock reset or paused?
• Working for multiple hirers
• AW drives HGV 1 day per week for H x 4 – 12 weeks
• When equal treatment arises?
9
Equal treatment - qualification
• Maternity and for up to 26 weeks after child birth
• Adoption and paternity leave
10
Equal treatment
• ‘Basic working conditions’ =
• Pay
• Working time
• Overtime – qualification?
• Holiday pay (over WTR)
• Rest breaks (over WTR)
• Bonuses/ commission linked to individual performance (sales) hybrid
schemes?
• Time off for ante natal appointments; alternative work on maternity
grounds; paid for maternity work suspension
• NB ordinarily included all aspects of comparator package taken into
account
11
Exclusion from equal pay inc holiday pay only
• Swedish derogation – permanent employee of TWA – paid between
assignments
12
Exclusion from pay and basic working conditions
• NOT
• occupational pensions (though note from October 2012 automatic pension
enrolment)
• occupational sick pay (above SSP)
• maternity, paternity and adoption pay (above statutory SMP, SPP and SAP
rights)
• redundancy pay (statutory and contractual)
• notice pay (above statutory notice)
• benefits in kind (such as company cars)
• bonuses not linked to individual performance (such as loyalty bonuses) –
but hybrid schemes?
13
Enforcement and information
• AW right to request information from H for day one rights – 28 day
time limit
• AW right to request information from TWA on 12+ week rights
• TWA respond within 28 days after request for 12+ week rights
• After 30 days AW request of H – information – 28 day time limit
• NB – H and TWA exchange information in timely manner – reminders
for changes/ amendments prompts
14
Enforcement and liability
• Worker may bring claim before Employment Tribunal for
infringement/detriment
• Liability usually rests with TWA for 12+ weeks, subject to:
• ‘Reasonable steps’ defence
• Tribunal’s power to apportion liability for compensation and possibly
£5,000 anti-avoidance fine
• Breach of ‘day one’ rights always hirer’s responsibility
15
Action points - Hirers
• Audit of agency staff – basic terms compared with comparators
• Skills matrices for each role to establish comparisons
• Provide TWAs with standard t and c’s, pay scales and holiday terms
• Keep track of
• Short assignments and different
• Identify roles for which no direct comparator
16
17
Action points for Agencies
• Internal systems – for collating information for comparators
• Close to 12 weeks, request information
• Reminders to hirers for changes
• Exchange of information and distribute to other TWAs
• Contract terms in TWA/hirer agreements for disclosure of information
18
How will Hays operate
• Discuss and advise on the AWR requirements - Day 1 and Week 13
• AWR amended Internal systems – for collating information for
comparators
• At 9 weeks, we will remind our clients of the12 week rights and
choices
• At 9 weeks a Pro Forma request will be made for comparator
information
• Reminders to hirers for changes each week to week 13
• Information (Pro Forma) kept on file and can be requested by AW
after 12 weeks
• Amended T&Cs sent to AW where applicable
19
Questions and Comments
• Questions
• Comments
20

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Agency Workers Regulations 2011 Guide For Hirers And Agencies 03 11 11 27.10.11

  • 1. Nick Hobden Partner www.ts-p.co.uk E: nick.hobden@ts-p.co.uk D: 01892 701326 3 November 2011 © Thomson Snell & Passmore 2011 Agency Workers Regulations A guide for hirers and agencies - hosted by Hays
  • 2. Nick Hobden Partner & Head of Employment 2 Nick Hobden Partner www.ts-p.co.uk E: nick.hobden@ts-p.co.uk D: 01892 701326 Find me on Linked In!
  • 3. Session summary • Legal Obligations • Implications of non-compliance • Steps to help organisations comply • Q and A’s 3
  • 4. The Agency Workers Regulations 2010 • Came into force from 1 October 2011 • Covers ‘temps’ – Myth? • No reasonableness test for temp to perm fee • Non-statutory guidance from BIS • Dept of Education – supplementary guidance 4
  • 5. In scope/ out of scope 5 In scope Out of scope Agency worker – employed/personally contracted to work (inc umbrella companies) finding work through… Genuinely – self employed/ service providers/ PSCs – STATUS? …TWAs – employment businesses - inc intermediaries (vendors) supplied to… Managed service contracts under supervision of TWA not Hirer …Hirer (end user) supervising and directing workers In house (temp) staff banks but not if supplied to H2 (secondment?)
  • 6. Scope – out of scope • Not permanent placements/recruitments • But note equality of pay clause 6
  • 7. Day one rights • Two ‘day one’ rights: • Right to be informed of relevant vacancies • Access to “collective facilities and amenities” (on site) • Comparators • Same establishment • Objective justification – collective facilities and amenities only 7
  • 8. Equal treatment - qualification • 12-week qualifying period = qualify for the same basic working conditions as would be - as if recruited directly (Comparator?) • When calculating the 12-week period: • a move to a substantially different role or different H or a break of six weeks or more between assignments = resets the clock • Any break less than 6 weeks or due to holiday or sickness (up to 28 weeks) = pauses the clock 8
  • 9. Examples • Working through multiple agencies • AW with TWA1 at H1 – 6 weeks • AW with TWA2 at H1 – 3 weeks later for 8 weeks • Clock reset or paused? • Working for multiple hirers • AW drives HGV 1 day per week for H x 4 – 12 weeks • When equal treatment arises? 9
  • 10. Equal treatment - qualification • Maternity and for up to 26 weeks after child birth • Adoption and paternity leave 10
  • 11. Equal treatment • ‘Basic working conditions’ = • Pay • Working time • Overtime – qualification? • Holiday pay (over WTR) • Rest breaks (over WTR) • Bonuses/ commission linked to individual performance (sales) hybrid schemes? • Time off for ante natal appointments; alternative work on maternity grounds; paid for maternity work suspension • NB ordinarily included all aspects of comparator package taken into account 11
  • 12. Exclusion from equal pay inc holiday pay only • Swedish derogation – permanent employee of TWA – paid between assignments 12
  • 13. Exclusion from pay and basic working conditions • NOT • occupational pensions (though note from October 2012 automatic pension enrolment) • occupational sick pay (above SSP) • maternity, paternity and adoption pay (above statutory SMP, SPP and SAP rights) • redundancy pay (statutory and contractual) • notice pay (above statutory notice) • benefits in kind (such as company cars) • bonuses not linked to individual performance (such as loyalty bonuses) – but hybrid schemes? 13
  • 14. Enforcement and information • AW right to request information from H for day one rights – 28 day time limit • AW right to request information from TWA on 12+ week rights • TWA respond within 28 days after request for 12+ week rights • After 30 days AW request of H – information – 28 day time limit • NB – H and TWA exchange information in timely manner – reminders for changes/ amendments prompts 14
  • 15. Enforcement and liability • Worker may bring claim before Employment Tribunal for infringement/detriment • Liability usually rests with TWA for 12+ weeks, subject to: • ‘Reasonable steps’ defence • Tribunal’s power to apportion liability for compensation and possibly £5,000 anti-avoidance fine • Breach of ‘day one’ rights always hirer’s responsibility 15
  • 16. Action points - Hirers • Audit of agency staff – basic terms compared with comparators • Skills matrices for each role to establish comparisons • Provide TWAs with standard t and c’s, pay scales and holiday terms • Keep track of • Short assignments and different • Identify roles for which no direct comparator 16
  • 17. 17
  • 18. Action points for Agencies • Internal systems – for collating information for comparators • Close to 12 weeks, request information • Reminders to hirers for changes • Exchange of information and distribute to other TWAs • Contract terms in TWA/hirer agreements for disclosure of information 18
  • 19. How will Hays operate • Discuss and advise on the AWR requirements - Day 1 and Week 13 • AWR amended Internal systems – for collating information for comparators • At 9 weeks, we will remind our clients of the12 week rights and choices • At 9 weeks a Pro Forma request will be made for comparator information • Reminders to hirers for changes each week to week 13 • Information (Pro Forma) kept on file and can be requested by AW after 12 weeks • Amended T&Cs sent to AW where applicable 19
  • 20. Questions and Comments • Questions • Comments 20