Small Businesses Could Be Exempt From AWD

Small businesses that cannot find a comparable employee could be exempt from the agency workers directive (AWD) under new draft regulations, says the British Chamber of Commerce.

David Frost, director general of the British Chambers of Commerce (BCC), says: "The announcement to delay implementation of the AWD until October 2011 is welcome and we recognise that the government has made some changes to their plans to help minimise the burden on business. In particular, we are pleased that small businesses with no pay scales or a comparable employee will be de facto exempt from this legislation”

Kevin Barrow, partner at Blake Lapthorn, told Recruiter that the draft regulations reflect an important point - that agency workers will now effectively be paid the same and treated the same as a comparable permanent worker.

“The big argument between the CBI and the unions has been over what happens if there is no direct comparator and whether a tribunal could somehow invent a hypothetical comparator which is what happens in equal pay claims for sex and race discrimination.

“The thinking is that this is unworkable for agency workers, as quite often there is no direct comparator and frequently you hire a temp because you have not got anyone in your permanent workforce who can do the job.

“I am pleased to say that, provided the small business does not have going rates or pay structures, for the purposes of finding a comparator there is no requirement to invent one.”