AWR finally bites as small recruiters shut up shop

Late last year the freelancing, contracting and recruitment sectors were abuzz with the introduction of the Agency Workers Regulations – a colossal piece of new legislation which granted temporary workers similar rights to full-time workers after twelve weeks of employment. Contractors operating through an umbrella company were particularly at-risk as they ended up inside the new rules despite not being the intended targets. Despite predictions of 500,000 contracts coming to an end�October 31st came and went and freelancers and contractors remained mostly unscathed. Now though, after almost six months of AWR compliance, many recruiters are finding the increased financial burden too much to bear. A report in the Financial Times has shone the spotlight on the continued fluctuations in the recruitment industry, and revealed that many small recruitment firms are seeking a buyer or shutting their doors altogether after the AWR increased both their workload and overheads. Recruiters Pertemps have gobbled up 20 smaller firms in the last year, and say the AWR are “high on the list” of reasons cited by small recruiters looking to sell up. Their Chief Executive said many firms “lose their passion for recruitment when the onerous administrative burden starts to take over”. Many recruiters [...]

Source: http://www.freelanceadvisor.co.uk/getting-a-job/awr-finally-bites-as-small-recruiters-shut-up-shop/

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