Abolition of the Swedish derogation relating to pay for agency workers

Implementation date: 6 April 2020

The Agency Workers (Amendment) Regulations 2019 (SI 2019/724) abolish the Swedish derogation, which gives employers the ability to pay agency workers less than their own workers in certain circumstances. Under the derogation, agency workers can exchange their right to be paid the same as directly recruited employees for a contract guaranteeing pay between assignments. The Government's Good work plan, published on 17 December 2018, highlights the misuse of the derogation by some employers. The legislation banning this type of contract is intended to prevent agency workers losing out on their equal pay rights.