Skilled PAYE Umbrella contractors have barely been affected by AWR, despite the grim predictions at the time of their implementation this time last year that an agency workers jobs famine would surely follow.

This is the verdict of the REC’s Industry Research Unit, which conducts an ongoing analysis of the impact of AWR on temporary roles. One year on, it seems clear that contractors working through umbrella companies or limited companies have little to fear from the regulations.

The number of employers who ceased or reduced their use of temporary workers was just one in ten, with a further 18% reporting that the rules had influenced them to reduce agency staff only marginally. A tiny 4% said their temporary staff reductions were driven directly by AWR. The majority of employers who had even slightly lowered their agency headcounts had done so because of continuing sluggish growth and economic uncertainty and not because of AWR, the research reveals.

Contractors can also draw comfort from the finding that the number of employers reporting satisfaction with their temporary workers has grown from 43% to 52%. Satisfaction among employers with staffing agencies has remained exceptionally high, at 92%.

Recent Posts

Leave a Comment