What’s the ‘Swedish Derogation’ – is it a way round the Agency Worker Regulations 2010?

PRLog (Press Release) - Nov. 14, 2011 - Under the Agency Workers Regulations 2010 an agency worker is entitled, after 12 weeks’ service on an assignment, to the same basic pay and conditions as the equivalent end-users’ employees.

However, there is a derogation under Regulation 10 (referred to as ‘the Swedish Derogation’) that allows an agency to opt-out of ‘the same basic pay’ rule (they still have to give the same basic conditions), but there’s a catch!

Briefly, the Regulation 10 requirements are that the agency worker must be employed by the agency under a permanent contract of employment (instead of an ‘as-and-when’ contract); the agency worker must be paid half-pay and at least the National Minimum Wage when there is no suitable work; and the agency must give at least four weeks’ notice to terminate the employment contract. Finally, it’s the agency worker’s choice as to whether or not they accept a ‘Regulation 10 contract’.

According to Employment Law specialist Citation PLC ( http://www.citation.co.uk/employment-law ) if an agency worker has the opportunity to take a long-term position with an end-user, they might be prepared to accept a Regulation 10 contract (with lower earnings than they might otherwise have had) in exchange for longer-term security.

Citation safeguard and protect more than 6,000 businesses across the UK via its team of regionally located, employed consultants. They are what make Citation unique – the calibre, qualifications, experience and professionalism of all of them. Citation has stringent recruitment policies to ensure that all the advisors are not only well qualified, they also have senior management experience. Led by a solicitor with over 20 years experience in private practice, Citation ensures that clients are provided with Employment Law and Health and Safety advice that is legally accurate and, most importantly, practical. Particular focus is placed on helping clients in areas where they need it the most, with issues such as Contracts of Employment, Employment Tribunals, Health and Safety policies and Risk Assessments. All areas of Employment Law and Health and Safety are in scope, from Discrimination to Maternity Pay, and from COSHH to Accident Reporting.

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