Danny Steel, Managing Director of Rocket Software explains why recruitment software is vital in helping temporary recruitment companies stay compliant with the AWR.

“Just as we appear to be lifting ourselves out of the credit crunch, recruiters are faced with the biggest administrative headache in the last 10 years. The AWR poses a real threat to the recruitment industry, as the resource and cost associated in managing the legislation and being compliant, are not insignificant.

In my opinion the legislation is draconian and we are trying to solve a problem that doesn’t really exist. Are temporary workers really that hard done by? I accept that in certain isolated cases there are disparities between temporary workers and permanent workers, but these disparities also exist the other way around. I don’t see the PWR (Permanent Workers Regulations) coming into force anytime soon! In lots of cases permanent workers are paid less than agency workers. Surely this is the nature of the beast and whether you are an agency worker or permanent worker you have the freedom to make your own choice and accept the associated pay and benefits.

Putting my opinion aside there is nothing any of us can do to stop the legislation coming into force and there is no magic wand we can wave to get around it. So we have to accept it and put systems and solutions into place to manage it and ensure our businesses remain compliant at all times.

No recruitment agency wants to be made an example of and be the first to test case law.

We should be proactive, embrace it and take it to our clients and explain to them how we are going to manage AWR for their business. Whether you opt for the ‘Swedish Derogation’, ‘French Extension’ or whether you follow the legislation in the spirit it was meant for.

Should you decide to go down the ‘Swedish Derogation’ route and employ your workers, I would advise that you consider exploring the options and benefits of a travel and subsistence scheme. If this is a course of action you wish to follow I would recommend contacting employment law experts, Brabners Chaffe Street for further information.

There is no doubt that running an agency in 2011 is much more onerous than it was when I first started in recruitment in 1997. Having been in the industry for 14 years I have seen some big changes, none more so than the introduction of the AWR. With new pensions legislation coming into force in 2012, it seems the administrative burden will continue to hound the recruitment sector.

From a recruitment software point of view, the AWR legislation has been difficult to programme as there are so many rules and variants depending on which route an agency takes. It must be almost impossible to track, control and comply with AWR for agencies using a paper based system. With complex requirements such as the need to keep at least 26 weeks worth of detailed work history and managing employment gaps, I would urge agencies to look at a software solution. Whatever system agencies decide to use, they should ensure that it is written in a way that does not prevent consultants from carrying out their normal daily duties.

Case Study - 24-7 Staffing

"AWR Legislation necessitates need for automated solution"

24-7 Staffing specialises in the supply of drivers and industrial staff to the logistics sector, across Wiltshire and South Gloucestershire. 24-7 first started working with Rocket Software in 2005 when they decided to introduce TempID into the business, to streamline front and back office operations by eliminating the duplication of data entry. The system manages workers and clients from the beginning of the recruitment process, through to the end resulting in payslips and invoices.

Rocket Software was started by recruitment agency owners providing recruitment software to recruitment professionals. With the 1st October 2011 looming and AWR legislation coming into force, Rocket Software has adapted its system to fully comply and control all aspects of the AWR.

Julian Thompson, Managing Director, 24-7 Staffing, understands the importance of having a software system that keeps his business compliant at all times.

"Having TempID within our business has proved priceless in the past and has enabled us to grow year on year through the efficiencies it delivers. The introduction of AWR only reinforces our need for a software solution to manage the process from start to end. Rocket Software has provided us with the tools to do our job".