The Agency Workers Regulations 2010 (AWR) came into force 1st October 2011.
Having consulted with our team of legal/tax advisors and YOU, our customers, Zeva have developed amendments to our current procedures that will not only implement the regulations, but could save you money.
Although we are unable to cover all aspects of the new regulations here, we have provided a simple explanation of our intentions.
The 1st thing we should say regarding the AWR changes is that it doesn’t apply to everybody, and we are very aware that some agencies are implementing bespoke solutions between themselves and their end clients to minimise its impact.
So therefore, when AWR does not affect your workers, for example:
- • work on short assignments (under 12 weeks)
- • have no permanent comparator
- • are currently paid parity
Zeva will continue as normal, employing these workers under our current 336 hour regulation 5 hybrid contract of employment and apply tax relief on the expenses your workers incur.
Where your workers may be caught by AWR, the agency can either:
- a. Carry on as normal for up to 12 weeks, and only then decide which workers to pay parity or change to a derogated contract.
- b. Engage workers on a Derogated contract with no added fees.
Our existing procedures will continue to manage worker queries, assess entitlements and capture a full audit trail including a record of all communication.
We hope this brief FAQ below will be of help, but if you require further explanation, please call Angie or
Jane on 0808 168 2772
What about Derogated Contracts?
If your umbrella provider is offering a “one size fits all” solution to AWR, paying temps under the new regulations WILL cost you more.
There are many providers who are encouraging agencies to swap to a derogated or Regulation 10 contract, and charging up to 8% from day 1.
This has the benefit of not requiring comparator rate information, but the disadvantage that pay may be required between assignments (hence the charge). Zeva has decided to offer a derogated contract option at no extra cost, and unlike our rivals, our 336 hybrid contract can be amended to a derogated contract at any time up to 12 weeks, meaning you don’t need to act straight away, and you only have to offer a derogated contract when absolutely necessary.
On a Derogated contract will I be charged for non-working periods between assignments?
Possibly, but only the actual cost, and very importantly,
only for workers who qualify. The requirements for pay are expensive for agencies, with a minimum of 4 weeks paid at NMW or half pay (whichever is the higher). However, there are strict requirements for the worker to demonstrate his continuing availability under the terms of his employment contract and should he fail just one of these, no payment will be due. With this in mind, we will apply a stringent automated termination procedure that ensures that only those workers who adhere strictly to these requirements receive any pay between assignments. Zeva is so confident in its derogated contract and availability procedures that it will by prior arrangement, and subject to agreement with Zeva termination policy, absorb this additional cost entirely
How will I keep track of the AWR status of my workers?
For all its existing customers, Zeva already provides a real time gateway to its systems. This has been extended and an AWR module added at no extra cost. This isn’t just an email reminder, agencies can review the status of all their workers and:
- • Receive Automated email reminders of workers approaching AWR threshold
- • Change rates and holiday pay for workers they wish to pay a comparator rate
- • Change workers from a 336 to a derogated contract, at any time up to 12 weeks
- • Keep a complete document trail of all AWR related activity
For more information regarding AWR and Zeva’s solutions, please call Angie or Jane on 0808 168 2772
What about existing workers
At 12 weeks from the 1st October we will contact the agency to ascertain if there is any comparator data. The agency need do nothing else until then.
