Amidst all the confusion in regards to the Agency Workers Directive, many contract workers are concerned that employers will begin terminating their contracts at the 12 week point so as to avoid the AWD. Actually, this has not been the case as UK companies are realising that it is more cost effective to give contract workers equal rights in terms of employment conditions than to continue training new temporary staff every 12th week.
What the AWD does mean to the contractor is that they will be extended the same considerations as permanent staff in terms of wages, sick pay, holidays, use of facilities and hours worked. It does not extend to them the right to be hired as full time workers and it does not address maternity/paternity leave. Whether a temporary or contract worker has been hired through an agency or on his/her own volition, UK umbrella companies such as Pulse Umbrella still manage payroll, taxes and National Insurance payments for the worker. There is no change in legislation as to how this is handled.
What a UK umbrella service does is collect from the agency or employer and will then take care of payroll. Umbrella services can be thought of loosely as accounting firms for contractors and not in the same way as recruitment agencies. Still, it is essential that an umbrella service is up to date on the Agency Workers Directive to ensure that all aspects of these new guidelines are adhered to when dealing with payments, taxes and National Insurance. Pulse Umbrella works closely with agencies and contractors to ensure that AWD guidelines are in place and adhered to.