AWR definitions
Temporary Worker Definition
Temporary Work, Temporary Employment or Temporary Labour Provision refers to an employment situation where the working arrangement is limited to a specific period.
Temporary workers can be paid in 3 different ways:
1. Pay As You Earn (PAYE)
2. Via an Umbrella Company (must have FCSA or Professional Passport accreditation)
3. Via their own Limited Company
AWR Regulations applies only to those workers that are paid PAYE or via an Umbrella Company. ‘Limited company workers’ are treated separately - they do not pay the same Tax or National Insurance contributions as a permanent employee and may be subject to IR35 – please refer to [IR35 policy].
The Temporary Work Agency (TWA)
A temporary work agency (TWA) supplies agency workers to work temporarily for a third party (the hirer – e.g. Amey). The agency worker works temporarily under the supervision and direction of the hirer but only has a contract with the TWA. Under the Regulations, a TWA is a person (individual or company) in business, whether operating for profit or not and including both public and private sector bodies, involved in the supply of temporary agency workers. This could be a “high street” agency, but also an intermediary such as an umbrella company or a master or neutral vendor if they are involved in the supply of the agency worker.
Pay As You Earn
The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Your employer deducts tax and national insurance contributions from your wages before paying you your wages. More information can be found at https://www.gov.uk/paye-online
Umbrella Company
An umbrella company employs agency contractors who work on temporary contract assignments, usually through a recruitment agency in the United Kingdom. The umbrella company provides payroll on behalf of the contractor and bills the agency (who, in turn, bills the client) for work completed by the contractor. Amey will only accept the use of an Umbrella Company with FCSA or Professional Passport accreditation.
Limited Company / Personal Services Company (PSC)
Personal service companies are limited companies. They tend to provide the services of one contractor, who’s often the company’s only shareholder and sole director.