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We were pleased to see this week that recently released figures from the temporary labour supplier de Poel have revealed that the number of non-permanent staff hired rose by 13% in January 2012. The biggest increase was in the manufacturing sector, with a 35% rise, followed by business services at 33%. Increases of 19% and 13% were also seen in the care sector and construction industry respectively. This contradicted the predictions of several prominent commentators who had indicated the likelihood of a ‘mass cull’ of temporary workers in the New Year because of AWR and comes as good news for all contractors working through umbrella companies.

Commenting on the figures, Head of Policy at the REC Gillian Econopouly said, “The REC and PCG have always been in agreement that the AWR was never intended to apply to genuinely self-employed freelancers. We are united in making every effort to help freelancers, HR professionals and recruiters understand what this means for how they work. Recruiters, freelancers and hirers all want the same thing: a healthy, vibrant contractor community which is not affected by these regulations, which were designed to protect workers at the other end of the job market.”

These figures come at the same time as the PGC issues a guide for umbrella contractors to clarify exactly when AWR does and does not apply to contracting – aiming to dispel ‘misleading myths’ about the legislation which are starting to come from some recruiters. The guide has been written by academics, lawyers and industry experts, and is designed to also help recruiters and HR staff to capitalise on the input of skilled contractors.

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