The Agency Workers Regulations (AWR) also known as the Agency Workers' Directive (AWD) is due to come into force on 1st October 2011. The legislation refers to the agency worker being entitled to certain benefits from the first day of working through to entitlements after 12 weeks to the same basic working and employment conditions as he or she would have received for doing the same job had he or she would have been recruited directly by the end user.
How Does AWR Affect Umbrella Companies?
There has been much debate about its interpretation, causing uncertainty amongst all involved in relation to how the legislation would affect everyone involved including agency workers, agencies, intermediaries and end users. In response, the UK Department for Business, Innovation and Skills (BIS) issued a draft publication of their AWR guidance in April and a revised publication a few weeks later.
Tarpon has always differentiated itself within the umbrella company industry by offering its employees a genuine 'employment solution'. In practice this has meant offering contractors a full time, permanent employment contract, maintaining contracted pay during breaks between contracts, paying holiday pay when holidays are actually taken and offering statutory sick pay, maternity pay, etc when the need arises. Tarpon also offers every employee access to a company pension scheme, private healthcare and a wide variety of flexible benefits which has historically only been offered to those employed in more traditional sectors.
Naturally, Tarpon accepts that offering such a genuine employment solution for its contractors has always carried a greater employment responsibility, but these are challenges which have always and continue to be closely managed in respect of all changes such as the AWR. Tarpon has always worked in partnership with agencies with that premise very much at the fore and note with much interest that the BIS guidance in respect of the Agency Workers Directive (AWR) has only reinforced this historic, well judged approach.
It is also important to highlight the strength of Tarpon's business working in parallel with business partners and their employment lawyers. It is Tarpon's approach and philosophy, which has resulted in a zero liability scenario for all client agencies and end users since its inception in 2007.
Due to Tarpon's due diligence and best practice approach, Tarpon will guarantee both the hirer and client agencies a 100% protection against any potential employment law and tax challenges (including the AWR) directly related to employees working through Tarpon Enterprise Ltd.
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