The Swedish Derogation Model – what is it? When is it ending?

Updated February/June 2019 – The Agency Workers Regulations come into force on 1st October 2011 to bolster the rights of so-called “vulnerable” agency workers – along with the controversial Swedish Derogation which allows employers not to pay equal pay (i.e. the same pay as comparative employees at the hiring employer), if the agency worker is employed by a permanent contract of employment by their agency.  Here we look at what it means and who it applies to.

swedish derogation

In January 2019, the Government announced that from 6th April 2020, agency contracts containing a  Swedish Derogation contracts will be unlawful.   The reason the Government have given for repealing this law, is apparently to encourage more employers to take on permanent employees (we can see a huge flaw in that argument!….).  This repeal will mean that all agency workers, once they have worked at the Clients/Employers for 12 weeks are entitled to pay parity with permanent employees, from 6th April 2020. This also means that by no later than 30th April 2020, TWA’s must provide agency workers, who are employed on existing contracts that contain the Swedish derogation, with a written statement telling the workers that with effect from 6th April 2020 those provisions no longer apply.  If the TWA does not provide this statement on time the agency worker can bring a claim to an Employment Tribunal. If we find out more information we’ll update this post!

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The Human Resources Consultancy service for SME's in the UK creative industries

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