What will your umbrella look like after AWR?

[JeffreyC]

Greetings everyone,

...and Happy New Year!

If some reports are to be believed, 2011 is the year when the interim recruitment market falls flat on it's face in the wake of the Agency Worker Regulations.

But what will this mean for umbrella companies? Naturally I have a vested interest in how this all pans out (I have a wife to support after all). I'm therefore hoping that some of our umbrella chums will chip into this thread and give me your (or your employer's) take on what our business will look like at the end of the year, once AWR has fully taken hold.

Ta

[Malvolio]

The market won't change. Clients aren't even vaguely interested in your accounting arrangements. Agencies will apply the letter of the AWR regardless in case they get stiffed with an employment claim. Umbrellas will cover their extra costs out of your income. The net result is your net pay goes down but you may have some more free time to play with - perhaps.


Of course, this only applies if you work through a third party, so this would be a good time to get your own company sorted out...

[The SMG]

I doubt the umbrellas will change much. Maybe they'll firm up a bit on their contracts which means that the likes of Lawspeed will have another lucrative year (did someone say gravy train?).

I suspect that the bigger recruiters will dream up some kind of 'MSC style' questionnaire, similar to the panic-fuelled rubbish they were asking us to fill out in May 2007.

Recruiter: "Are you working through an MSC?"

Contractor: "MMMM, don't think so?"

Recruiter: "Is your 'provider (by that they mean Umbrella) working in accordance with the agency workers directive?"

Contractor: "MMMMM, I think so?"

...Not worth the paper it's written on but still, if it makes everyone sleep easy at night....

G

[WYSIWYG]

Originally Posted by Malvolio

Of course, this only applies if you work through a third party, so this would be a good time to get your own company sorted out...

Are LTD's not within scope Malvolio?

Iain

[Malvolio]

Originally Posted by WYSIWYG

Are LTD's not within scope Malvolio?

Iain

No. Owners of limited companies operating as a business are specifically excluded.

[Vaseline]

Originally Posted by Malvolio

No. Owners of limited companies operating as a business are specifically excluded.

Doesn't this then open up the whole IR35 debate? If "in business" contractors are excluded, surely there will be even more emphasis on IR35 / IR56 and its subsequent replacement?

I only hope PCG are feeding this back to the OTS!

[Malvolio]

Originally Posted by Vaseline

Doesn't this then open up the whole IR35 debate? If "in business" contractors are excluded, surely there will be even more emphasis on IR35 / IR56 and its subsequent replacement?

I only hope PCG are feeding this back to the OTS!

I expect it's crossed their mind to do so...

[David Harmer]

I looked into this in some detail in my previous role and in a hell of a lot more detail in my current role - in my opinion it will sort the wheat from the chaff - the complaint, correctly operating umbrellas will thrive and go from strenth to strength, the others will fall by the road side - which can only be a good thing for providers and contractors alike.

The wording at the moment is ridiculously poor and no doubt some agencies will fly into knee-jerk reaction mode!