Many Interim Managers To Be Affected By AWR In October 2011

From the 1st of October 2011, the Agency Workers Regulations (AWR) will become effective. Surprisingly, it has been reported by an IIM Interim Management survey that a massive 38% of interim managers have no idea how this law will affect them.

This law was introduced in 2010 to protect temporary / agency workers from exploitation and will be effective from the 1st of October 2011. It gives temporary workers various levels of rights that they would otherwise not be entitled to as ‘non-permanent employees’. The implication of this law is that companies that currently use temps and agency workers will be faced with increased responsibilities and will therefore be looking to employ those not affected by the AWR. For Interim Managers not working through their own limited companies, they could be faced with possible loss of contracts or negotiating power. As the implementation day approaches, many companies have started to rethink their recruitment strategies, and companies that have depended heavily on interim managers/ executives will start to look for those who will not create extra costs for them, or even increase the likelihood of being involved in an employment tribunal that could involve them, their interim manager and an umbrella company.


WHAT INTERIM MANAGERS CAN DO:
If you are an interim manager, you need to be able to prove that you are in business in your own right- on your own account. These are the questions to ask before you decide what action to take:
1. Are you working through your own Limited Company- or through an umbrella company?
2. Are you submitting your own invoices and demanding for payment independently?
3. Are your working hours dictated by an agency or the client you work for?
4. Can you hire employees at your own expense?
5. Do you have your own business stationery including business cards?
6. Do you have your own business insurance?
7. Do you have the right CV? Even a CV showing that you are looking for interim roles demonstrates what the law refers to as ‘publicly stating its line of business’ and can help support your claim.

However, one point to note is that the AWR guidance warns against individuals setting up a limited company purely as an avoidance tactic, so your business relationship has to reflect that you are an independent worker. If you can prove this, than you may be clear of the regulations and therefore not be in a disadvantaged position as clients will start to select those candidates who will not create additional liabilities for them. Get legal advice if you need to but you need to take action soon.

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