I (Jane Stevens, Specialist IT Recruiter) have written a few Blog articles recently regarding AWR (the Agency Workers Regulations) which came into affect from 1 October 2011. The Regulations have brought firmly into the spotlight the need for contractors, agencies and clients to work closely together to ensure employment legislation compliance. Often within this mix will sit umbrella companies and the need to choose the right one.
Having worked within IT recruitment for fifteen years now, I often find that contractors (especially those new to the contracting market but sometimes even more established ones) are not always fully aware of whether they are better off working through their own limited company or through a third party umbrella company and if an umbrella, which company to use.
As in any sector, you will find the good, the bad and the ugly. The challenge the contractor has is to establish the bonafide players who are able to run their contracts as compliantly as possible and therefore minimise the risk to the contractor.
To re-cap, before AWR hit, the clients were less likely to be aware of how each contractor ran their own business. Post AWR clients need to know how the contractor is operating in order to make sure they and/or the agency supplying the contractor on site are operating AWR compliantly. (more…)