Orange & Gold Blog

Agency Workers Regulation. Compliance is not just about IR35

The Agency Workers Regulations (AWR) came into force on 1st October 2011. There are now three main options for the supply chain to consider regarding AWR:


• AWR compliant arrangements for agency PAYE and umbrella: this will ensure the contractor is entitled to any associated change to terms and conditions when compared with a direct hire. From a compliance perspective this relies on information sharing across the supply chain and a robust data capture and tracking system to identify any required change and equally robust systems to subsequently implement it.

• Swedish Derogation model for agency PAYE and umbrella: this will require the information sharing as above, in addition to an appropriate, robust employment contract for the contractor and an open acknowledgement of the replacement of equal pay with pay between assignments and a proactive, work finding service.

• Alternatively, contractors who are genuinely suited to operating in a business on their own account may decide to set up and work as a limited company instead and place themselves out of scope.