AWR – Practical implications

Tom Hadley, Director of Policy and Professional Services REC Recruitment &Professional Services, REC Recruitment &

Employment

Confederation

Wh B fit t NHS T tWho we are – Benefits to NHS Trusts

Risk management

Code of Professional Practice (Best Practice)

Four inspectors – 35 inspectors p pper month

Yearly self assessment process

Complaints Procedure – Standards

Committee (CBI & TUC)

Institute of Recruitment Professionals –

Code of Ethics and Professional Conduct

Our AWR Campaign: building aOur AWR Campaign: building a coalition

How much of the MarketHow much of the Market will be affected?

Source: CIPD

Th i iti l ‘ t’The initial ‘agreement’…

The deal allows for 12 weeks of placement before equal treatment kicks placement before equal treatment kicks in

E l t t t ill b th d Equal treatment will be on the grounds of pay and working time

Pay will not include contractual sick pay and occupational pensions schemes

All other areas were up for grabs..

M th B tMyth Busters

A k ill b th li t ’ An agency worker will become the clients’ employee after 12 weeks? NO

AWR will mean that the flexibility of using temporary resource will be lost, clients will not be able to terminate assignments when they need to? NO

Clients can hire agency workers through different agencies to avoid AWR? NO

Only agencies have to worry about AWR? NOy g y

Perm Staff can claim the same pay as agency workers if they are paid more? NO

We can get round the Regulations by We can get round the Regulations by moving agency workers to a different site or department every eleven weeks? NO

What’s the deal ? – Practical issues

1. Who and what is covered

Are LCCs excluded? Big issue in areas such technology, interim management and locum doctors.

T t i d ‘ i lf pl t’ I Test is around ‘genuine self-employment’- In practice, this will mean ‘digging beneath the surface’ and being clear on how the work will be managed and delivered.

In-house banks and other supply modelsIn house banks and other supply models

2 Wh t k titl d t ?2. What are workers entitled to?

Discussions with BIS have provided some clarity in what is clearly in and what is clearly out.

Holiday pay – Not just statutory minimum

What is the definition of pay? This is biggest area of uncertaintygg y

Overtime rates and shift premiums will need to be appliedto be applied

Hot topic! The performance appraisal issue

3 Th 12 k lif i i d3. The 12 week qualifying period

How will it be calculated?

What is a week?

Who will flag it up?

Will this lead to a ‘churn’ factor?

4 Li bilit i4. Liability issues

Who will be liable if there is a claim?

Common sense approach – consensus with l i tiemployer organisations

Agencies are putting systems in place Agencies are putting systems in place to handle queries

REC model contract are being finalised

5 E t bli hi E l T t t5. Establishing Equal Treatment

It is a ‘what if..’ comparison

Formal pay scales will make it easier

Where there are no formal pay bands –look for ‘comparators’

Referring to skills and experience as justification for different payj p y

6 I l t ti d t6. Implementation date

October 2011 – Best we could have hoped forhoped for

When does equal treatment apply from?q pp y

What needs doing now?

Pressure even closer to home

The employer’s      perspective

Th l tiThe employer perspective “ Hi i ti it i t l HR it “ Hiring activity is not always HR, it

is often done by line managers who will extend an assignment week by week so are unlikely to know or follow a

specific process”

“There will be a rocky period during implementation, but temporary workers

th t f lfill d hi h t are there to fulfill a need which wont go away”

“Some industries and sectors wont have pay scales and formal salary bandings”

“Managing the temporary workforce is just managing the workforce”

Th l tiThe employer perspective Reviewing internal proceduresg pWho decides on use of temporary workers

Need to share data on pay Positive feedback on need to co-operate with agencies

E l t t t f t Evaluate current pay rates for temporary staff Planning ahead in terms of direct impact on salaryy

Being clear the 12 week derogation periodWho will ‘flag it up’g p

Obligation to highlight permanent jobsAlso concerns of collective facilities etc..

Possible new modelsCh f t ‘S di h’ d ti

S K Q ti F NSummary – Key Questions For NowHow does the client use temporary workers, How does the client use temporary workers, How many work for 12 weeks or longer?

Is there a significant difference in the pay g p yrates of agency staff in comparison to own staff?

How many of the temporary workers used are How many of the temporary workers used are self employed?

Are there significant differences in other Are there significant differences in other working conditions – e.g. holiday entitlement

Pay – are there clear pay scales that can be f d ?referred to?

Bonuses – does the client pay bonuses to its own staff?own staff?- Are these bonuses tied to production/performance?

Next steps and wider context

R it t 2020Recruitment 2020

REC AWR Ad iREC AWR AdvisorR i l W k hRegional WorkshopsWebinarsModel ContractsModel ContractsFactsheetsClient GuidanceSector Specific implementationFrequently Asked Questions

Additi l il blAdditional resources availableIn-Company training, Client Seminars and AWR Consultancy. See ywebsite for description and prices:www.rec.uk.com/awrwww.rec.uk.com/awr