Contractors could be affected by AWR amendments

Date: 17th August 2011

UK contractors could be tempted to seek the assistance of a specialist accountancy service following recent amendments to the agency workers' regulations (AWR).

The government has unexpectedly made some alterations to the definition of terms in the EU-inspired legislation, which come into effect in the UK from October this year.

After updating what it described as "drafting errors", the coalition has redefined "agency worker" and altered the provisions governing the use of "pay between assignments" contracts of employment.

According to law firm Blake Lapthorn, the new version sees 'agency workers' defined as "individuals who have a contract of employment with the agency or any other contract with the agency to perform work or services personally" as opposed to "individuals who have a contract of employment with the agency or any other contract to perform work and services personally for the agency".

"This shift in emphasis is to make it clear that the agency worker does not have to perform work or services for the agency itself," the firm explained.

"The agency worker will have a contract with the agency which most usually will cover work or services for a hirer. The change to 'work or services' also broadens this definition which now better reflects the nature of agency working."

Posted by Emily Smith