It is now twelve months since the Agency Workers Regulations 2010 came into force.

Reports on the impact of the Regulations have been mixed but we also know that many organisations have yet to implement them fully, often because they are unclear as to what is required. This creates risk, the cost of non-compliance potentially incurring significant penalties, including an unexpected rise in labour costs.  Conversely, some organisations have adopted an approach which exceeds requirements, often resulting from misunderstanding of the law but incurring additional, avoidable expense.

If you are among those who are uncertain as to which way to turn or you want assurance that your implementation is appropriate under the Regulations but also to your organisation, Eversheds can carry out a fixed-fee audit. Furthermore, if we are unable to identify any areas of non-compliance or cost savings for your business, the report we produce will be free. For more information click here.

In the Spring, the Government intends to commence a review of how the Regulations are working. Clearly there are issues –in certain aspects of drafting as well as operation. As a Firm we have provided regular feed back to the Government on the Regulations from early drafts and we shall be responding to any Consultation which emerges next year.

Some concerns we have identified include the calculation of hourly rates, the operation of pay between assignment contracts (Swedish Derogation) and confusion over benefits, such as performance-related bonuses.