Connecting to LinkedIn...

Blank

Government agrees to revisit indemnity clauses relating to AWR

Government agrees to revisit indemnity clauses relating to AWR
 
According to the Association of Professional Staffing Companies (APSCo), the government will be reviewing the area of indemnity clauses in the guidance notes of the Agency Workers Regulations (AWR).
 
The draft guidance notes were published on 1st April 2011 and the Department of Business Innovation and Skills (BIS) agreed at the recent APSCo meeting on Thursday 31st April to look at the issue of indemnity clauses in an amended draft.
 
It is reported that many of the APSCo members are being asked to accept liability should an agency worker bring a case under the AWR. With this type of indemnity clause in place, the recruiter would be liable for any breach, even if the end client failed to provide the necessary information (i.e. information on comparable employees and working conditions) to ensure compliance with the AWR.
 
Ann Swain, chief executive of APSCo, says: It is clearly not fair or right for the agency to have to pay for a claim under the Regulations when an end user has misinformed them about how much relevant full-time staff are paid. It is encouraging that BIS is sympathetic to recruiters on this issue though recruiters can help themselves by not signing contracts with these kinds of clauses in.
 
These kinds of liabilities can be uninsurable, which can make selling a recruitment business which has agreed to such terms extremely difficult. Recruiters need to be careful what they sign up to, although anything BIS can do to highlight and potentially resolve this issue will be welcome.
 
For more information on the agency worker regulations, please visit www.awradvice.co.uk

Tags:

Articles similar to

Articles similar to