Skip to content
SJD Accountancy
Join Now
Join now
we're open, call us

0123456789

  • Contractor Services
    • Our Services
      • Accountancy Packages
        • Compare Services
        • Essential
        • Premium
        • Elite
      • Company Formation
      • Switching Accountant
      • Tax & Audit Services
        • Self Assessment
        • Questionnaires
      • Insolvency Services
      • IR35 Contract Reviews
      • Special Offers
    • Partner Services
      • Umbrella
      • Business Insurance
      • Contractor Mortgages
      • Wealth Planning
      • Health Insurance
      • IPSE Membership
      • Rewards
  • Contractor Resources
    • Contractor Library
    • Top Guides
      • The Contractor’s Guide
      • Limited or Umbrella. The Ultimate Guide
      • Complete Guide to IR35
    • Contractor Tools
      • Limited Company Name Generator
      • Compare Your Day Rate
      • Gender Pay Gap Tool
    • Contractor Calculators
      • Take home pay
      • IR35 calculator
    • Becoming a Contractor
      • Permanent to Contracting
      • How to contract
      • Contractor earnings
      • Contracting in the UK
      • Umbrella take home pay
      • Limited or umbrella
      • Contracting through an umbrella
      • FAQ’s for new contractors
    • Existing Contractor
      • Expenses
      • Taking money out your company
    • Financial Advice
      • Business banking
      • Contractor and business insurance
      • Contractor pensions
      • Contractor mortgages
      • Off-Shore
    • Understanding Legislation
      • IR35
      • Flat Rate VAT scheme
  • About
    • Company
      • About SJD
      • Contact us
      • Careers
      • Terms of Business
      • Terms & Conditions
      • Privacy Policy
    • News
  • Clients
    • Refer to SJD
    • SJD Online
Search Search

SJD Accountancy > Resources > Umbrella Company Resources > Agency Workers Regulations (AWR)

Agency Workers Regulations (AWR)

Request Callback

SJD Accountancy > Resources > Umbrella Company Resources > Agency Workers Regulations (AWR)

For contractors working through a recruitment agency, an understanding of legislation is essential to remain compliant and in control.

The Agency Workers Regulations (AWR) were introduced in 2011 as a measure to protect agency workers by granting them the same rights as employees. We’ve looked at AWR and what this could mean for you.

What is an agency worker?

This term refers to an individual who is either:

  1. Supplied by a temporary agency. Temporary workers must have an agreement or contract to carry out work for their hirer and work under their supervision and direction.
  2. A worker who supplies their service through an umbrella company (known as an intermediary). These workers will have an employment contract with the umbrella company.

A genuine self-employed individual will not be classed as an agency worker, so these rules will not apply to them.

Request a Callback
Umbrella

What is Agency Workers Regulation?

The Agency Workers Regulations (AWR) came into effect on the 1st October 2011. It protects temporary workers hired through an agency, or those working through an umbrella company. Temporary workers and contractors working through their own limited company are unaffected by AWR.

The AWR legislation ensures that any temporary worker who is working for a company after 12 weeks in the same job role, will have the same working conditions to that of a permanent employee in the same job. This means that temporary workers will benefit from a whole host of employee benefits from their employers.

As a result, temporary workers after 12 weeks in the same role must be treated to the same terms and conditions relating to pay as a permanent member of staff.

However, the following are excluded from AWR:

  • Sick pay
  • Loyalty bonuses
  • Pensions
  • Maternity pay
  • Redundancy payments

Limited or umbrella?

If you’re considering working under an umbrella company, you should be aware of the key distinctions between contracting through your own limited company, how your working practices will differ and what support is available to you. For more information about working through an umbrella company, our sister company, Parasol, is here to help.

Visit Parasol

Who is affected by the Agency Workers Regulations?

AWR only impacts contractors who are not operating through their own limited company. The table below shows if you would be affected by the scheme.

State of Individual

Affected by Agency Workers Regulations?

Supplied by temporary work agencies

Yes

Supplied by intermediaries e.g. umbrella companies

Yes

Limited company contractors

No

What does AWR mean for me?

Once you have successfully completed the qualifying period of 12 weeks, you are entitled to find out about basic terms and working conditions. Typically, you will first approach your agency who will have 28 days to inform you of these terms and conditions. If, after 28 days they have not responded, you can ask your employer directly who then has 28 days to reply. If, after 28 days no information has been provided, you can take both parties to an industrial tribunal.

There is no maximum limit to successful claimants, but a minimum of two weeks pay should normally be awarded by the tribunal in relation to a failure to provide equal terms and conditions.

Employer penalties

Employers under AWR legislation have no choice if they participate or not. If they do try and avoid the 12-week qualifying period by rotating agency workers and changing assignments to ensure they do not meet the 12-week qualifying period, they will face fines of up to £5,000.

What happens if I change agencies in between my 12 week period?

Nothing. If you were to be in the same role, but re-hired by a different agency within this timeframe, you would still be entitled to the 12-week agency workers regulations. If, however you changed agency and your temporary role was different, you would not apply for the 12-week AWR rule.

How will AWR impact me if I hire subcontractors?

If you are a contractor, AWR will not impact you if you are legitimately in business on your own account. However, if you provide contractors to clients to undertake work, this legislation will impact them.

Request a Callback


We want you to know exactly how our service works and why we need your details. Please read our Privacy Policy before you continue.

Back to top

Contact Us

  • 0123456789

Useful Links

  • Terms & Conditions
  • Recruiters
  • Privacy
  • Slavery Statement

New Business Hours

Monday - Thursday8:00 AM — 8:00 PM
Friday8:00 AM — 7:00 PM
Saturday10:00 AM — 4:00 PM
SundayClosed

Copyright SJD Accountancy 2021. All rights reserved. SJD Accountancy Ltd is a company registered in England & Wales. Company Registration Number 06277058.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.AcceptReject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.