'Exemptions' from AWR
Some umbrella companies have claimed that the individuals that work with them will be ‘exempt’ from AWR or that they can ‘opt-out’ in some way. There is no opt-out from AWR; if an individual is an agency worker who must perform work and services personally, under the supervision and direction of a hirer then, whether they operate through their own Ltd Company (PSC) or an umbrella company they will fall within the scope of the legislation. To merely state in a contract that the regulations don’t apply or that the individual is in business on their own account will make no difference to the law. In much the same way as IR35, it will be the working practices of the individual that determines whether or not they will be in scope of the regulations.