Agency Workers Regulations having little impact on remuneration

Almost 60% of temporary workers have received little or no change in their remuneration and over 60% of agencies feel their experience of the Agency Workers Regulations (AWR) legislation has been negative, new research suggests.

The survey by The Employment Agency Movement (TEAM) in conjunction with the Department for Business Innovation and Skills (BIS) investigated the impact of AWR since its implementation last autumn.

Comparing temporary usage during the first quarter of 2012 with the first quarter of 2011, the report revealed that over half (53%) of agencies surveyed have had to increase their charge rates as a result of the AWR and over a third (36%) have seen a negative impact on margins. Respondents also reported an overall net decrease in the use of temporary workers of 16%.

Simon Garbett, Chairman of TEAM, says: “There is no doubt that agencies have had to invest heavily both in terms of time and money in ensuring that they have the systems necessary to ensure full compliance. 

“There have also been difficulties with engaging end user clients who have tended to perceive the AWR as a matter for the agency and not for them.”

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