As part of the various commitments set out in the Good Work Plan, the Agency Workers (Amendment) Regulations 2019 and the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019 came into force on 6 April 2020.
WHAT ARE AGENCY WORKERS?
An agency worker contracts with an employment business to work for one or more of their clients (or hirers), they are therefore not directly recruited by the businesses where they work.
WHAT ARE THE CHANGES?
- Removal of the Swedish derogations
The Swedish derogation provided an exemption from the right to equal treatment. In fact, agency workers that had a “Pay Between Assignment Contract” could 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 had gaps between assignments.
- Equal Treatment for all Agency Workers
All agency workers will have a right to pay parity after having worked for the company for the qualifying period (12 weeks).
- Protection from Unfair Dismissal and Detriment
Where an agency worker is an employee, they will be unfairly dismissed if the principal reason for their dismissal is that they have (or they are suspected to have):
- Brought proceedings or given evidence at proceedings under the Agency Workers Regulations.
- Alleged that a temporary work agency has breached the Regulations.
- Refused to forgo a right under the Regulations.
Agency workers also have the right to not be subjected to a detriment for taking such action, or being suspected to have taken such actions.
WHAT STEPS DOES YOUR BUSINESS NEED TO TAKE?
If you are an Employment Business (Agency):
- Requirement to provide statement to existing agency workers
By no later than 30 April 2020 you must provide agency workers, whose existing contracts contain a Swedish derogation provision, with a written statement advising that, with effect from 6 April 2020, those provisions no longer apply.
Agency workers will have the right to bring a claim in the employment tribunal if you fail to do so.
- Requirement to provide a Key information document for new agency workers
From 6th April 2020, you must provide agency work-seekers with a document that must be headed “Key Information Document. It must be easily understandable and on a maximum of two pages.
The document must include information about:
- The identity of the employment business.
- The type of contract
- Minimum pay and methods of payment.
- Non-monetary benefits.
- The nature and amount of any potential deductions
- Annual leave and payment in respect of such leave
If your business uses Agency Workers
If your company currently hires agency workers who are employed under Swedish derogation contracts, these changes could have significant financial implications if you have to pay them at least the same rate as direct recruits.
Take the time to check with the agencies you contract with and understand the terms of their contracts with their agents.