You will find plenty of initialisms in the world of contracting: we’ve already looked at SDC, now let’s turn to AWR. If you are affected by the off-payroll reforms, and are considering alternatives such as Umbrella employment, then it’s helpful to understand AWR.
Under this model, after 12 weeks on an assignment, the agency worker is entitled to pay parity when compared with any directly hired counterparts, and the agency worker’s pay for the purpose of this calculation is the value they receive after the party that pays them deducts any of its costs.
Under this model, the worker forfeits their right to equal pay after 12 weeks but instead, must receive a payment between assignments from their employer. So, if the worker is available to work but not offered any, the employer must pay a value that is equal to or more than NMW or 50% of the worker’s highest paying week over the past 12 weeks (whichever is greater).