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UK — Blake Lapthorn identifies clues to final implementation of AWD

07 September 2009

The Recruitment sector group at Blake Lapthorn solicitors have sought to identify the main issues concerning the new Agency Workers Directive (AWD), which is about to be announced by the UK government's Department for Business, Innovation and Skills (BIS).

A second consultation period is about to start, probably by the end of September 2009. Current indications are that this consultation may be as short as four weeks. It will focus on the precise wording of the draft regulations, which will be set out in the consultation paper BIS issues.


The complexity of the directive suggests that in fact more than two consultation periods will be necessary if measures are to be fully workable. However, political priorities appear to mean that the final legislation is to be adopted more quickly than ideally it should be, with the consultation to be finished by the end of October so that the regulations can be finalised this year and come into force in April 2010.

Blake Lapthorn are confident that there are ways in which organisations will be able to supply and use temporary workers without too much extra administrative burden or cost, especially given the increased tax advantages that can be enjoyed when agency workers are used. Blake Lapthorn believe there is even “a possibility that judicious use of legitimate tax efficient models may even end up keeping the implications of implementing AWD adjustments cost neutralâ€Â?. However, users and suppliers of agency workers will need to adopt new procedures and contract models to minimise this burden.

The article states that the majority of UK spend on temporary agency workers is on skilled, professional and technical workers who already enjoy reasonable pay rates and who will be comparatively unaffected. While there may be particular challenges for suppliers and users of lower paid agency staff, Blake Lapthorn claim there will be workarounds for most types of supply into most types of end user.

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