AWR launch will not result in contractor decline, says REC

Date: 9th August 2011

The Recruitment and Employment Confederation (REC) has moved to reassure contractors that the introduction of the agency workers' regulations (AWR) will not lead to diminished demand for their skills.

It comes after a report in the Sunday Telegraph cited research suggesting that high costs involved with AWR compliance will put a significant number of businesses off using temporary workers.

The REC rubbished the claims, saying that businesses turn to contractors in order to acquire specialist skills, not to save money.

Kevin Green, the REC's chief executive, commented: "Even in the sectors where temps are most heavily used, such as industrial and drivers, recruiters are speaking to their clients about the new regulations and do not expect to see a significant drop-off in demand.

"This is because for most employers, cost is not the primary reason they take on agency staff. Rather, it is to acquire specialist skills and provide workforce flexibility to respond to peaks in demand."

The AWR will be implemented in the UK from October 1st this year.

Posted by Emily Smith