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The end of the Swedish Derogation – yes, but what does it all mean in practice? (UK)

One of the changes planned as part of the Government’s Good Work Plan is for the “Swedish derogation” within the Agency Worker Regulations 2010 to be abolished from April next year.   This is causing concern to a number of our clients who use a high volume of blue collar agency workers.    They are estimating that the cost of this change will run into millions. What is the Swedish derogation? The Swedish derogation is shorthand for a special type of employment contract provided for in Regulation 10 of the AWR.  Its official name is a “pay between assignments” contract because workers engaged on these contracts with a temporary worker agency (TWA) give up the right to pay parity with comparable permanent staff in return for a guarantee to receive a certain amount of pay when they have gaps between assignments. This arrangement has been most commonly used where large numbers of blue collar workers are needed e.g. retail, manufact...