Employment Legislation

How Will Abolishing 'Swedish Derogation' Help Agency Workers?

Legislation

How Will Abolishing 'Swedish Derogation' Help Agency Workers?

Due Date

6 April 2020

Summary

In Matthew Taylor’s ‘Good Work Plan’, published in December 2018, the government committed to abolishing a legal loophole known as the ‘Swedish derogation’ in the rules governing the use of agency workers.

What is the Swedish Derogation

Swedish derogation allowed agencies to opt out of paying agency workers the same rate of pay as comparable permanent workers when they have been with the same employer for more than twelve weeks, provided the workers were paid between assignments.

It has been estimated that around 120,000 workers are currently affected by the rules.

From April 2020, all agency workers will have a right to pay parity after twelve weeks, irrespective of whether they are paid between assignments.

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