Questions About 1099

Within recent years businesses throughout the UK, as well as elsewhere around the world, have been downsizing and cutting back in a number of key areas. Some of the ways in which many companies sought to reduce operating expenses was in terms of payroll and benefits. Because of this, companies began making a significant portion of their workforce redundant and in turn began hiring agency workers to fill those spots. The reason for this was plain and simple. Agency workers were not entitled to the same benefits packages as full-time or part-time employees and companies were able to save a great deal of money on these items alone.

However, government saw the inequality between agency workers and permanent employees. In an effort to provide fair treatment for all workers in the UK, the Agency Workers Regulations was established. These regulations have outlined very specific responsibilities for companies hiring temporary workers as well as for temporary work agencies. Agency Workers Regulations, AWR, went into effect on 1 October 2011 and provided agency workers with the same entitlements as if they had been directly recruited in terms of basic employment conditions. AWR guidance is very clear on what these entitlements are. Hirers and agencies have been given very clear directives on what their role is in protecting workers’ rights.

On day one, entitlements of agency workers include access to the same facilities as those workers which were directly recruited by the hirer. Canteens, childcare facilities and job vacancy information are amongst the entitlements included from the beginning however at such time as the worker is continually on the job for 12 weeks, he or she is eligible for equal treatment entitlements. This span of time is referred to as the 12 week qualifying period and the entitlement for pregnant workers is perhaps the biggest change. Pregnant workers, from 1 October 2011, are now able to attend postnatal appointments with pay. Agencies and umbrella companies are to be responsible for ensuring that contract workers are afforded equal treatment under AWR guidance.

This new legislation is understood by Pulseumbrella who are committed to safeguarding the rights of workers and working directly with recruitment agencies. Recruitment agencies have decided to work through umbrella services because of the complexity of these laws and the need to manage AWR data and mitigate risk, and in turn agencies are able to concentrate on matching contract workers with employers as this is what they do best. In direct opposition to AWR guidance, a good number of on road companies only work as paymasters. While it is vital to maximize the take-home pay for workers it is also crucial to safeguard workers rights.

Umbrella companies should likewise work to ensure that contract workers are given the entitlements they are due in regards to pay and basic working conditions once the 12 week qualification period has been met. After the worker has met the 12 week period of qualification, those entitlements are supposed to be on a par with the entitlements of direct hires recruited by the hirer. Rest breaks, previously mentioned paid antenatal time off for appointments and annual leave are amongst the entitlements contract workers should have. Pulseumbrella works together with recruitment agencies to make absolutely sure that agency workers do indeed receive equal treatment as outlined in the AWR.

For more information on AWR, visit Pulse Umbrella today.

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