Under current legislation (the “Swedish Derogation” Regulation 10 of the Agency Workers Regulations 2010) businesses are able to avoid paying agency workers comparably with direct recruits if their contractual terms provide for a right to pay between assignments.
The government considers that in the majority of cases it is rare for agency workers to have a break between assignments and suggests that agencies are able to benefit from using these types of contracts as a means of reducing their wages bill.
With the introduction of the draft Agency Workers (Amendment) Regulations 2019 which are intended to come into force in April 2020, the government intends to repeal the Swedish Derogation so that after 12 weeks all agency workers will have the right to pay parity with direct recruits.
There will also be a requirement for all employment businesses to provide a Key Facts page to agency workers stating:
- the type of contract;
- the minimum expected rate of pay;
- any deductions or fees that will be taken (and an illustrated example of the impact of this upon their take home pay) and
- details of how and by whom they will be paid (ie via an intermediary or umbrella company).
The requirement for the Key Facts page will be enforced by the Employment Agency Standards Inspectorate.
If you require any information regarding the proposed employment law reforms please do not hesitate to get in touch by email or telephone.