The staffing industry must use the summer to prepare properly for AWR, rather than bury its head in the sand or create novel ways to avoid being caught, according to the Freelancer and Contractor Services Association (FCSA).

Chair of the FCSA, Stuart Davis, says: “In broad terms, there will be three options for highly-skilled freelancers and contractors. First, a compliant ‘Swedish Derogation’ approach, involving work via a company offering full employment and pay between assignments for the contractor. Second, work via a company offering a ‘match permanent pay’ model with full employment rights. Third, contractors may choose to work via their own limited company.

“Obviously, the ability for workers to be engaged and paid directly via a recruitment business will remain, subject to the recruitment business implementing either a compliant Swedish Derogation or match permanent pay approach.

“Proper compliance is achievable but it is going to involve difficult business decisions for some end clients, recruitment businesses and service providers alike – even FCSA members – and new commitments that some may not find palatable.

“But those ignoring the new legislation or seeking ‘clever’ evasion strategies are both likely to find themselves targeted strongly by the Department for Business, Innovation and Skills and trades unions, which will actively be looking to support members in bringing cases to tribunal.”