Randstad UK’s legal director has attacked the use of one-hour contracts as a way of mitigating the impact of AWR (Agency Workers Regulations).

Ian Naylor told Recruiter that AWR draft guidance issued by BIS, appear to give umbrella companies and agencies the option of employing workers on one-hour a week contracts, provided they are on permanent contracts of employment, under the so-called ‘Swedish Derogation’.

However, Naylor said that such contracts are “wrong”. “They don’t protect workers, could be exploited by some agencies and umbrellas, and are not in line with the intended spirit of the regulations,” he said. 

Naylor said that in its place, Randstad has proposed a link to average hours worked per week, rather than one hour, or anti-avoidance clauses that would stop recruiters and umbrellas from sidestepping the legislation.  

Based on conversations with BIS, Naylor said he expects BIS to close this loophole by inserting ‘anti-avoidance’ clauses in the final legislation. He said that he was seeking further clarification from BIS, but that ultimately it was their decision.

A BIS spokesman told Recruiter that the regulations would not change from those published. Final guidance on the regulations was expected shortly, he added.