Longer Reads

Agency Workers Regulations: Is your business compliant?

The government has recently introduced changes to the regime affecting the rights and entitlements of agency workers which have significant implications for those businesses which employ them. Our Employment team provides an overview of the changes and prospective changes.

1 minute read

Published 28 August 2020

Share

Key information

The government has recently introduced changes to the regime affecting the rights and entitlements of agency workers which have significant implications for those businesses who employ agency workers.

The government commissioned The Taylor Review of Modern Working Practices with the aim of making recommendations to improve working life and employment rights, with a particular emphasis on temporary workers such as agency workers.

The ‘Swedish Derogation’ to the previous regime of regulations allowed agency workers to be paid less than full-time employees where they had a permanent contract of employment with the employment agency and were paid between assignments. However, this is one of the exceptions which is affected by the recent changes.

We have recently advised clients regarding their obligations under the new regime, and the importance of taking remedial action to ensure compliance with the new rules moving forward to avoid any potential employment claims.

April 2020 changes

With effect from 6 April 2020 a number of changes have been implemented by the government, including:

  • the Swedish Derogation has been abolished, meaning those agency workers with 12 weeks’ continuous service have a right to equal pay compared to those workers employed full time by the company;
  • all agency work-seekers are entitled to a ‘Key Information Document’ setting out the terms on which they will be employed;
  • all workers have the right to receive an itemised payslip each month; and
  • the pay reference period under the Working Time Regulations for calculating holiday pay has been extended from 12 to 52 weeks.

These changes will clearly have a significant impact on those companies who employ agency workers, and advice should be sought to establish whether your company’s arrangements comply with the recent legislative changes and exhibit best practice.

Prospective changes

The Taylor Review also suggested further changes such as giving all agency workers the right to request a more stable contract after 26 weeks’ service.

The government has suggested that further reforms may be enacted through a new Employment Bill. We await to see the exact manifestation of any further changes, but the government has clearly set its sights on improving agency workers’ rights and so employers should watch this space carefully for future updates in order to ensure they remain compliant.

Our specialist Employment team are here to help with any queries you may have and are able to provide advice to ensure compliance with the latest legal developments.

Message us with any questions

Related latest updates
PREV NEXT

Related content

Arrow Back to Insights

Longer Reads

Agency Workers Regulations: Is your business compliant?

The government has recently introduced changes to the regime affecting the rights and entitlements of agency workers which have significant implications for those businesses which employ them. Our Employment team provides an overview of the changes and prospective changes.

Published 28 August 2020

Associated sectors / services

The government has recently introduced changes to the regime affecting the rights and entitlements of agency workers which have significant implications for those businesses who employ agency workers.

The government commissioned The Taylor Review of Modern Working Practices with the aim of making recommendations to improve working life and employment rights, with a particular emphasis on temporary workers such as agency workers.

The ‘Swedish Derogation’ to the previous regime of regulations allowed agency workers to be paid less than full-time employees where they had a permanent contract of employment with the employment agency and were paid between assignments. However, this is one of the exceptions which is affected by the recent changes.

We have recently advised clients regarding their obligations under the new regime, and the importance of taking remedial action to ensure compliance with the new rules moving forward to avoid any potential employment claims.

April 2020 changes

With effect from 6 April 2020 a number of changes have been implemented by the government, including:

  • the Swedish Derogation has been abolished, meaning those agency workers with 12 weeks’ continuous service have a right to equal pay compared to those workers employed full time by the company;
  • all agency work-seekers are entitled to a ‘Key Information Document’ setting out the terms on which they will be employed;
  • all workers have the right to receive an itemised payslip each month; and
  • the pay reference period under the Working Time Regulations for calculating holiday pay has been extended from 12 to 52 weeks.

These changes will clearly have a significant impact on those companies who employ agency workers, and advice should be sought to establish whether your company’s arrangements comply with the recent legislative changes and exhibit best practice.

Prospective changes

The Taylor Review also suggested further changes such as giving all agency workers the right to request a more stable contract after 26 weeks’ service.

The government has suggested that further reforms may be enacted through a new Employment Bill. We await to see the exact manifestation of any further changes, but the government has clearly set its sights on improving agency workers’ rights and so employers should watch this space carefully for future updates in order to ensure they remain compliant.

Our specialist Employment team are here to help with any queries you may have and are able to provide advice to ensure compliance with the latest legal developments.

Associated sectors / services

Need some more information? Make an enquiry below.

    Subscribe

    Please add your details and your areas of interest below

    Specialist sectors:

    Legal services:

    Other information:

    Jurisdictions of interest to you (other than UK):

    Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

    Subscribe to our articles

    Message us on WhatsApp (calling not available)

    Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

    I accept Close

    Close
    Scroll up
    ExpandNeed some help?Toggle

    Get in touch

    Get in touch using our form below.