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Agency Worker’s Regulations (AWR)
Agency Worker’s Regulations were put in place to protect temporary workers by ensuring that they are entitled to the same pay and working conditions as their equivalents in a full-time role after they have been working for at least 12 weeks. For more information, please look at our guide to AWR Legislation.
Auto-Enrolment is a piece of legislation that requires employers to register all eligible employees on a company pension scheme.
An agreement between HMRC and an employer to reduce the amount of admin and paperwork that needs to be completed for expenses.
These employees have the right to join the pension scheme if they wish, as long as they’re aged 16 - 74; working in the UK and earning below £5,772. (The employer only has to make a contribution for entitled workers if it is part of their contract of employment.)
Most workers in the UK are entitled to a minimum amount of paid holiday each year, known as statutory holiday. This currently stands at 5.6 weeks per year, your contract of employment may offer more than this amount but by law it cannot be less.
IR35 was bought into effect to prevent contractors from working as disguised employees. Before the legislation, many full-time workers would leave their jobs only to return to the same position as a contractor a few days later, thus taking advantage of the tax saving benefits that come hand in hand with contracting
Employer’s Liability Insurance
By law, all employers in the UK must have at least £5million employer’s liability insurance to ensure that they can always compensate employees who have to make a valid work related claim.
National Minimum Wage
National Minimum Wage is the minimum amount that someone can be paid per hour in the UK. The rates vary according to age.
These are employees who are either:
Aged 16 - 21 or State Pension Age (74) working in the UK and earning above £10,000
Aged 16 - 74, working in the UK, earning above £5,824* a year but below £10,000* and have a right to opt in to their employer's pension scheme.
Managed Service Company Legislation
The legislation is in place to help prevent contractors receiving payment via dividends rather than as general PAYE income, without having the day to day responsibilities that come hand in hand with running a business.
Professional Indemnity Insurance
This is a type of insurance that is used to protect both companies and their employees from claims that may be made by third parties due to negligence or mistakes that have occurred during the provision of services.
Public Liability Insurance
Public liability insurance is used to protect both companies and their workers from claims made by members of the public who have sustained an injury or had some form of damage caused to them. There is no law that requires you to have public liability insurance but it is highly recommended if your business means that you regularly come into close contact with the general public.
Real Time Information (RTI)
Real Time Information is the process of reporting information to HMRC on a regular, ‘real time’ basis. Previously, employee earnings were reported to HMRC on an annual basis after the end of the tax year on 5th April. Now, you must tell HMRC whenever you pay an employee, how much they were paid and what tax was collected from them.
Statutory Adoption Pay
If you have adopted a child by an adoption agency, you could be entitled to 52 weeks of statutory adoption leave. This includes 26 weeks of ordinary adoption leave and then you can take an additional 26 weeks should you require it. To qualify, you need to have worked continuously for 26 weeks for your current employer and provide evidence that you have adopted a child.
Statutory Paternity Leave
To qualify for statutory paternity leave you need to have been with your current employer for at least 26 weeks and be taking time off to support the mother of the baby. Paternity leave usually lasts one to two weeks.
Statutory Maternity Leave
You have the right to 26 weeks of ordinary maternity leave and 26 weeks of additional maternity leave. To qualify you must be an employee and give your employer the correct notice. Be sure to sit down with your employer and discuss any other entitlements you may have during maternity leave as it can vary from company to company.
If you have people working for you on a temporary contract then they still need to be included on your payroll and the relevant deductions IF they meet the criteria of being employed by you.If you pay someone to do a one off job for you – the window cleaner for example – then these people do not need to be included on your payroll.
Temporary Workplace Expenses
As a temporary worker, you are entitled to claim certain business expenses that you may incur throughout the day e.g. your travel to and from work. A temporary workplace is a place of work that you need to attend for a limited period of time.
An Umbrella Company acts as an employer to contractors who are working on temporary contracts.
Working Time Regulations
These are regulations that give EU workers the right to a minimum number of days holiday, paid breaks and the right to a certain amount of rest. Furthermore, workers have the right to work no more than 48 hours each week or undertake excessive night work.
24 Month Rule
You can claim travel and accommodation expenses if you are working at a temporary workplace. HMRC defines a temporary workplace as somewhere where your attendance lasts no longer than 24 months. For example, if you signed a 36 month contract, this would be considered your permanent place of work and no travel or accommodation expenses could be claimed.