The new UK Agency Worker Regulations came into effect on October 1st. In response, CFC has made some key updates to its recruitment policy (RES) wording.
In an effort to keep employers from exploiting temporary workers, the Agency Worker Regulations (AWR) which came into effect last week will give those on shorter term contracts that same rights as permanent staff in the same position after 12 weeks. This includes everything from pay to holiday allowance.
Although the new regulations have good intentions at heart, the implications are nonetheless concerning recruiters. Temporary recruitment agencies in the UK are going to have to change their procedures and train their staff accordingly to ensure they comply with the AWR.
This creates a new insurance requirement because agencies will be exposed to financial loss if they fail to comply. However, we at CFC have recently updated our RES wording to provide cover for any unintentional breaches of the AWR. This cover attaches to the professional indemnity insuring clause and is included at no extra cost.
Not in the UK? We have news for you too! We’ve removed the non-standard contract exclusion in RES policies worldwide to help clarify our actual underwriting intent and make it really clear that we can cover recruitment firms even when they are not working on their own standard terms of business.
To find out more about the AWR, how it affects the liability of recruitment agencies and what CFC is doing to cover these exposures, feel free to email us with any questions you may have.