PAYE umbrella contactors specializing in the IT skills market may be relieved to hear that the Agency Workers Regulations, which became operative on 1st October this year, appear to be having few discernible ill effects on ‘high end’ temporary workers such as themselves.

The Recruitment and Employment Confederation’s Technology Sector Group has been meeting recently with the Interim Management Association (IMA) to monitor the impact of the AWR on the higher end of the contractor/temporary worker market. The verdict so far appears to be that the effects of AWR have been more limited than feared, although significant misconceptions are still prevalent amongst a minority of employers.

Even so, the overall view seems to be that highly skilled professionals, such as experts in IT contracting, are not being adversely affected by the regulations. In particular, the use of the Swedish Derogation model in sectors like IT appears to be helping employers retain highly skilled professionals by keeping them on the books of a single agency rather than having them work through several different providers.

The REC’s Director of Policy and Professional Services, Tom Hadley, said of his organisation’s discussions with recruiters:

“It is encouraging to see that the regulations are having little or no impact so far at the higher end of the market. However, we must not take this for granted and must continue to raise awareness amongst client organisations of what the regulations mean and do not mean. The demand for contractors and interim managers remains strong despite the AWR coming into force in October and we will continue to monitor the situation as we approach the first 12 week milestone.”

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