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AWR November update

In times of need, we all just need to pull together2 Birds Small

With just a few weeks until we reach the end of the landmark date of 24 December 2011 (the date from which claims can be brought under the Agency Workers Regulations 2010 (“AWR”), now is the time when recruitment agencies, umbrella providers and end clients are pulling together information to ensure they comply with their AWR obligations.

Whilst agencies are educating clients on their AWR responsibilities, Brookson are on hand to help agencies and take the stress and strain out of ensuring that the match permanent pay calculations are carried out accurately and all appropriate deductions are taken into account.

Crunching the numbers

Calculating the agency workers pay and comparing it with pay and benefits afforded to the client’s own employees can be a minefield, but it doesn’t need to be.  It is important to remember to factor in the items A, B and C (below) when undertaking the comparison.

 

Umbrella Employee

Comparator Employee

Rate paid to umbrella provider

£Y

£(no less than) X

Less the following deductions:

 

 

Employer’s National Insurance Contributions

(£A)

 

Umbrella Margin

(£B)

 

Holiday entitlement

(£C)

 

Umbrella worker pay:

£X

£(no less than) X

 

Benefits afforded to the client’s employees, such as bonuses, vouchers and other monetary entitlements should also be factored into the comparison (where applicable) to ensure an accurate picture is painted.

Fore-warned is fore-armed

Securing the comparator information early in the assignment is vital for compliance with AWR. Most of the agencies working with Brookson are securing information relating to a comparable employee’s salary and benefits at the time instructions for a role are received.  This ensures that information can be shared quickly and efficiently and any queries resolved well within the initial 12 week period.

Brookson have a dedicated help line for agencies to provide support and guidance in relation to AWR.  If you have a query, please do not hesitate to contact us on 0845 058 1227 or by email at awr@brookson.co.uk.

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