From 6 April 2020, the new rules will give agency workers a right to pay parity with direct employees once they have undertaken the same role with the same hirer for 12 continuous calendar weeks. These workers can bring claims against their employers for not issuing the statement in time. This website uses cookies to ensure that we give you the best user experience. Registration is easy! In addition to their statutory holiday rights under the Working Time Directive , agency workers have extra rights under the Agency Workers Regulations. The changes — which are expected to affect around 130,000 workers and will impact employers relying on temporary workers — feature in The Agency Workers (Amendment) Regulations 2019. Pay parity is defined as the same basic working and employment conditions as comparable workers who are directly recruited by the same business. Workers will be protected from detriment and unfair dismissal if they try to assert their rights under the regulations. A gender pay gap is the average difference in pay between men and women, for example across an organisation. We will never tell you of changes to our bank details by email. Under Regulation 5(1) of the Agency Workers Regulations 2010 (AWR) an agency worker “…shall be entitled to the same basic working and employment conditions…” as if they had been employed direct by the hirer. These include: Abolition of the Swedish Derogation - After 12 weeks working on the same assignment, workers have a right to be paid equal to permanent members of staff. Employers with 250 or more employees must publish figures about their gender pay gap. The 2010 Regulations allows agency staff to forgo their right to pay parity with direct employees in return for a contract that offers pay between assignments (a so-called ‘Swedish derogation’ contract). Together, we’re redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Explore Mercer’s latest thinking to see how we’re helping to redefine the world of work, reshape retirement and investment outcomes, and unlock real health and well-being. Law Society president, Christina Blacklaws, supports the change. It includes certain bonus payments, holiday pay, overtime, shift allowances, unsociable hours premiums but doesn’t include company sick pay, maternity/paternity/adoption pay or pension … We are available for video call and telephone meetings but cannot currently offer face to face meetings with clients except in some specific emergency situations and at court hearings. The regulations exclude bonuses payable for the amount or quality of work done by the worker; company sick pay; maternity, paternity and adoption pay; pension contributions and severance pay. Unlike workers employed directly, agency workers do not have rights to claim unfair dismissal, request maternity or paternity leave or claim redundancy pay. It includes certain bonus payments, holiday pay, overtime, shift allowances, unsociable hours premiums but doesn’t include company sick pay, maternity/paternity/adoption pay or pension and redundancy pay. The Employment Standards Inspectorate will issue guidance to employment agencies and other stakeholders. The change will affect all employers who use agency workers. A number of important changes will affect agency workers from April 6 2020. Last week, a group of House Democrats led by Rep. Gerry Connolly, D-Va., urged appropriators to follow Congress’ tradition of instituting pay parity and increase federal civilian pay … 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. Why naming the co-respondent is a bad idea, The Equality Act 2010 – what’s new and what’s changed, at a glance, Full membership of the Association of Contentious Trusts & Probate Specialists (ACTAPS) for Claire James, Wards’ Yate office – helping our local foodbank, Wards Solicitors recognised as leading South West law firm, Wards announces new Partnership and full TEP accreditation for lawyers, Please email or telephone your usual lawyer or team, or. At Mercer, we believe in building brighter futures. “Agency workers can now be confident that they have a legally enforceable right to be treated and paid equally to colleagues employed directly by the employer.”. Minister Murphy said: “As is the case in many organisations, agency workers play a key role in the civil service and the delivery of services. As such, ensuring agency workers have parity is the safer approach. Please be aware that we accept no responsibility if you transfer money to a bank account which is not ours. Unlike fixed-term employees and part-time workers, agency workers have not, up until now, enjoyed rights to the same pay and holiday entitlement as directly employed staff in the same workplace. The measures follow recommendations in the 2017 Taylor Review, and they will revoke regulations 10 and 11 of the current law that provides for the option to employ temporary workers on a pay-between-assignments contract. The draft Agency Workers (Amendment) Regulations 2019, which are also due to come into force on 6 April 2020, amend the Agency Workers Regulations 2010 to remove the "Swedish Derogation" which allows employment businesses to avoid giving agency workers’ pay parity with comparable direct recruits if they have an employment contract that gives them a right to pay between … All agency workers will be entitled to equal pay after twelve weeks once the amendments come into force, whether or not they are paid between assignments. Equal pay and gender pay gap reporting are not the same thing. This type of  contract was introduced when the UK implemented the EU directive 2008/104/EC on temporary agency work. Our telephones lines are operating as normal behind closed doors. SINN Féin’s Martina Anderson has welcomed the announcement that agency workers in the civil service are set to get parity of pay and annual leave. To access this resource, sign up for a free trial of Practical Law. Mr Kocur was supplied by the agency to work for Royal Mail. Only agency workers with employee status have the following rights: What is the Qualifying Period? Agency workers’ rights are changing. It provides that agency workers are insurably employed and the person who pays the wages is the employer for PRSI purposes. Under the Swedish derogation, also called a “pay between assignments” contract, workers – who were paid by an agency – gave up the right to pay parity with comparable permanent staff in return for a guarantee to receive a certain amount of pay when they had gaps between assignments.. Agency workers with existing pay-between-assignments contracts on 6 Apr 2020 must be told in writing by 30 Apr 2020 that they are no longer opted out of their equal pay rights. As an agency worker, you have certain rights when using temp, recruitment agencies or employment agencies to find work - pay, holidays, equal treatment, fees The Regulations give temporary agency workers the following rights. While off caring for their new child, agency workers may be entitled to Statutory Maternity Pay, Maternity Allowance, Statutory Paternity Pay, Statutory Adoption Pay and/or Shared Parental Pay. 1. Part-time agency workers. This means that agency workers, who are on assignment on 5 December, 2011 are entitled to equal treatment in relation to Pay from 5 December, 2011. The cost of increased wages could be up to £380 million each year to hirers across the UK, according to government estimates. The measures follow recommendations in the 2017 Taylor Review, and they will revoke regulations 10 and 11 of the current law that provides for the option to employ temporary workers on a pay-between … If you’d prefer us to call you back, just use the form below to give us your number and the best time to call. “Pay” includes any payment in connection with an agency worker’s employment, including certain bonus payments, overtime payments, shift allowances, premiums paid for unsociable working hours and holiday pay. Our latest announcements and press releases, both global and local. Agency workers had “little choice but to accept ‘pay between assignment’ contracts” as if they refuse these terms and conditions, they will not be offered work by the agency. The Swedish Derogation is a special kind of contract where temporary workers can give up this … If you choose to continue using this website, you agree to our use of cookies. Be a part of our global team dedicated to building brighter futures for employers and their people. The Pay provisions of the Act are being made retrospective. If you have documents for us, including for ID certification, please deliver them to our letterbox at the office handling your case. A major change in employment law aimed at improving the rights of agency workers is to come into force next April. As he had worked at Royal Mail for a period of more than 12 weeks, Mr Kocur claimed that he should be entitled to the same weekly working hours, annual leave and paid rest breaks as Royal Mail e… Wards Solicitors remains open for business during the national lockdown and we are taking on new cases. Your agency has to look for jobs and offer them to you, and can’t end your contract unless it gives you at least four weeks’ pay (or you resign). For more information on eligibility visit Parents and carers. Pay parity is defined as the same basic working and employment conditions as comparable workers who are directly recruited by the same business. If you receive an email giving our bank account details, please telephone us immediately without replying to the email or sending money. From April 2020, holiday pay for workers whose pay varies will be averaged over 52-weeks instead of 12.) The worker employed has a permanent contract with their agency, not the end client, which allows them to be paid between assignments but not necessarily to receive the same wage and employment benefits as the end client’s permanent staff. Free Practical Law trial. From 6 Apr 2020, UK temporary agency workers employed on a “pay between assignments” contract — also known as a “Swedish derogation” contract — will be entitled to pay parity with directly hired employees after 12 continuous calendar weeks in the same role. “Until now, companies have been able, intentionally or not, to use loopholes and the lack of clarity in the law undermines workers’ rights,” she said. The official name is a ‘pay between assignments’ contract. All agency workers will be entitled to pay parity with effect from 6th April 2020, if they Employers must pay agency workers the same as direct recruits, When your neighbour’s building work is ruining your life, Penalty stamp duty rate – the main residence exception, Divorcing for adultery? A list of our 12 branches is available here. More information about these amendments can be found at Section 7 of this guidance. If your agency withholds your pay Your agency can delay paying you while they get proof of the hours you worked, but only for a reasonable period of … Adopting this approach also has limitations, as not all benefits/terms can be compensated. Agency workers can bring a claim in the Employment Tribunal where their employer fails to provide that statement on time. Workers asserting rights under the new Regulations will be protected from detriment and unfair dismissal. It would also be useful if you could give us some idea of what you’d like to discuss. Please telephone the branch most convenient to you between 9am and 5:30pm, Mondays to Fridays. Though widely used and legal, such contracts have been criticised as an easy way for companies to avoid paying agency workers fairly. For help and guidance about this area of the law, please contact Wards Solicitors’ Employment team, Business Employment team or Employment Law Specialist Solicitor Julia Beasley directly. This makes them a flexible resource for employers to meet unexpected peaks in demand and cover for absences. Currently, after 12 weeks of service, an agency worker is entitled to receive the same level of pay as a permanent worker unless the agency worker opts out of this right and instead elects to receive a guaranteed level of pay between their temporary assignments (“Swedish Derogation”). The Agency Workers (Amendment) Regulations 2019 repeals what is known as the ‘Swedish derogation’ contract commonly used to employ at least ten per cent of the UK’s 800,000-plus agency workers. From 6 Apr 2020, UK temporary agency workers employed on a “pay between assignments” contract —also known as a “Swedish derogation” contract — will be entitled to pay parity with directly hired employees after 12 continuous calendar weeks in the same role. Create your account today for an optimal, personalized experience. From 6 April 2020, the new rules will give agency workers a right to pay parity with direct employees once they have undertaken the same role with the same hirer for 12 continuous calendar weeks. Currently, these temporary workers receive a certain amount of pay between temporary assignments in exchange for waiving their right to pay parity. Agency workers’ rights. Announcing parity for agency workers, Minister Murphy said: “As is the case in many organisations, agency workers play a key role in the Civil Service and the delivery of services. From day one of an assignment, temporary agency workers have a right to: equal access to … When does time start running for the purposes of making a pay parity claim under the Agency Workers Regulations? Your agency must pay you the minimum wage or at least 50% of the highest weekly rate you received on your last job (whichever is greater) if you’re between jobs for more than a week. He received an enhanced hourly rate of pay compared with Royal Mail’s permanent employees, but was only entitled to a 30 minute paid rest break each day (rather than 60 minutes), and 28 days’ holiday (rather than 30.5 days). Is it when the agency worker became aware of the wage difference between the worker and the permanent employees? occupational schemes – sick pay, maternity, paternity and adoption pay, but you may be entitled legally to payments – check with your agency; redundancy … Nathaniel Caiden of Cloisters appeared for the successful … Pay parity (Regulation 5) Under this model, after 12 weeks on an assignment, the agency worker is entitled to pay parity when compared with any directly hired counterparts, and the agency worker’s pay for the purpose of this calculation is the value they receive after the party that pays them deducts any of its costs. Additional regulations have also been made bringing into force from 6 April 2020 the removal of the Swedish derogation for agency workers (meaning that all agency workers will have a right to pay parity after 12 weeks) and the requirement for agencies to give agency workers a key information document. "Under this … This right only applies once an agency worker has 12 continuous weeks service with the hirer, and it only applies to certain terms and conditions, namely; pay, working … Also excluded are bonuses not directly attributable to the amount or quality of work done, for instance bonuses aimed at encouraging loyalty or rewarding long term service. It is expected there will be an implementation period to allow employers time to adapt to the reforms. But another potential explanation lies with the very law designed to end unequal pay between agency workers and employees. Crucially, it means that after a new 12-week qualifying period, employers will have to pay agency workers the same rate as direct recruits. Tom Coghlin QC considers the important judgment of the Employment Appeal Tribunal (EAT) in Kocur v Royal Mail and anor UKEAT/0181/17, a decision which brings much-needed clarification to the rights of agency workers to the same basic working and working conditions under the Agency Worker Regulations 2010. Announcing parity for agency workers, Minister Murphy said: “As is the case in many organisations, agency workers play a key role in the Civil Service and the delivery of services. In respect of agency workers that commenced assignment after 5 December 2011, the • Excludes pay parity with other workers • Includes obligations to paid workers between assignments for at least 4 weeks Under the so called Swedish Derogation, agency workers do not have to be paid the same as comparable employees of the hirer provided they are employed directly by the agency on contracts that comply with the Its reference to rolled-up holiday pay would seem to contradict established thinking that such practice is unlawful (following the Robinson-Steele case). Agency Workers … The amending regulations provide the following: Provide your contact information to get in touch, MercerInsight®: managers & ratings database, The Agency Workers (Amendment) Regulations 2019, Directive 2008/104/EC of the European Parliament and of the Council of 19 November 2008 on Temporary Agency Work, Taylor Review of Modern Working Practices. The Agency Workers Regulations 2010 (AWR) are designed to tackle discrimination against agency workers in the workplace and the low pay, and holiday and working time conditions they are frequently engaged on. Important Warning: Cyber-crime is very common including email interception. You have the same right as other workers and employees to a minimum of 5.6 weeks' paid holiday each 'leave year' when you’re on an assignment. the agency may still offer an agency worker a permanent employment contract and pay between assignments, but the agency worker will be entitled to equal treatment to pay after 12 weeks; Holiday rights. Can be found at Section 7 of this guidance agree to our letterbox at the office handling your case the! Try to assert their rights under the new Regulations will be protected from detriment and dismissal... Is defined as the same basic working and employment conditions as comparable workers who are directly recruited by the workers. 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