Agency Workers Regulations (AWR)

The Agency Workers Regulations (AWR) which were implemented in the UK on the 1st October, were designed to protect law-paid agency workers from exploitation, not to tie up professional interim managers and their clients in ‘red tape’.

Professional Interim Managers and Executives who are genuinely in business on their own account fall ‘out of scope’ of these regulations. That means they may be engaged on an inclusive day-rate invoiced basis without concern for the fetters and administration of either employees or agency temps, whether they are engaged via an interim service provider/recruiter or come to you direct.

The BIS guidelines say that professionals who are in a genuine business relationship with a client fall ‘out of scope’.

They further explain that such individuals:

  • Are normally certified by a professional body.
  • Operate a profession or business undertaking.
  • Are normally not under immediate supervision and direction.
  • Have a client or customer relationship.

So how do you spot such an individual? They will demonstrate many of the following features:

  • They operate as independent businesses and behave as such even when via an agency.
  • Their status as an independent professional is referenced in the contract.
  • They conduct their assignment with minimum of direction or supervision.
  • They are very likely to conduct their business within a Limited company framework.
  • They are likely to have Professional Indemnity Insurance.
  • They are likely to have professional certifications, qualifications or accreditations.
  • They may be professionally accredited members of the Institute of Interim Management (IIM).
  • They may point out their ‘out of scope’ status on their CV, LinkedIn profile or website.
The final consideration is that for a genuine interim manager or executive to ‘try it on’ in an employment tribunal, they would be undermining their business status operating outside of IR35 with HMRC, deter future clients, and if the individual has already explained in their marketing collateral that they operate ‘Out of Scope’, then their claim would be (to use a legal term) ‘perverse’. 
 
When engaging professional Limited Company Interim Managers genuinely in business on their own account:
  • Should you treat them like ‘employees’? – No you shouldn’t, they are independent professionals.
  • Do you have to fill in forms comparing them to permanent employee? – No, they are ‘out of scope’.
  • Do they get holiday pay or benefits after 12 weeks? – No they don’t, their billing is inclusive.
  • Do you have to get rid of them after 12 weeks? – No, they may provide services as required.
  • Do you have to worry that they will sue you? – No, (as the expression goes) if they walk and talk like a duck, give you evidence that they are a duck, then they are a duck. 

The IIM expects that relevant case law will follow in due course, further clarifying the distinction between agency temps and professional interim businesses. At that point, this guidance will be further updated.

This article is available as a pdf download.

 

For Interim Managers: 

The IIM will help its members specifically and professional interim managers more generally to assert their professional status as being ‘out of scope’ of these regulations. 

Discuss strategies to stay ‘out of scope’ of the AWR on the AWR thread
on the ‘Interim Management – IIM’ LinkedIn group. 

High definition IIM ‘out of scope’ logos are available for accredited IIM members to download on the members download area.

 

Regulations links:

 
 
 
 
 

On the 1st October, the Agency Workers Regulations (AWR) will be implemented in the UK. Professional Interim Managers and Executives will generally fall ‘out of scope’ of these regulations. For ‘peace of mind’, these are the features of a professional ‘out of scope’ Interim Manager or Executive to look out for: 

  • They operate as independent businesses and behave as such even when via an agency.
  • Their status as an independent professional is referenced in the contract.
  • They conduct their assignment with a minimum of direction or supervision.
  • They probably conduct their business within a Limited company framework.
  • They probably have Professional Indemnity Insurance.
  • They maintain an ‘outside of IR35’ approach.
  • They have professional certifications or professional accreditations.
  • They may be professionally accredited members of the Institute of Interim Management.

Further information will be added to this portal through the Summer and into the Autumn.

 

For Interim Managers: 

The IIM will help its members specifically and professional interim managers more generally to assert their professional status as being ‘out of scope’ of these regulations. We will be supporting those groups with client focused collateral which can be used for client education purposes and to clarify status at the point of engagement. 

Discuss strategies to stay ‘out of scope’ of the AWR on the AWR thread
on the ‘Interim Management – IIM’ LinkedIn group. 

IIM AWR event (8th September)

On September 8th, the IIM will bring together a panel of experts, including some who were actively engaged in shaping this legislation, to discuss the impact of AWR upon the interim management community and to advise on the steps which interims need to consider. The IIM AWR event, sponsored by Veredus and Lawspeed, will be held at The Hatton, Covent Garden, London and the panel discussion will be followed by a buffet and networking event. Tickets are £15 for IIM members and £25 non-members. Book online at:

http://www.iim.org.uk/show-events/awr-ask-the-expert-panel/