The Retailer Winter 2018/19

The new right around continuity of employment for casual workers will mean a rethink of their rights and protections.

Removal of the Swedish

Agency Workers A significant issue will be the proposed repeal of the so-called “Swedish Derogation” in the Agency Workers Regulations 2010. Currently, agency workers can exchange their right to be paid equally to permanent counterparts in return for a contract guaranteeing pay between assignments. The government is concerned that this derogation is being abused and it will, therefore, ban this type of contract. This means that all agency workers will have a right to pay parity after 12 weeks. Draft regulations have been published and it is intended these will come into force in April 2020. This will inevitably lead to an increased cost of hiring agency workers and retailers should consider whether this remains the best means of dealing with fluctuating labour requirements. All employment businesses will be required to provide agency workers with a Key Facts Page that will include the type of contract the worker is employed under, the minimum rate of pay they can expect, how they are to be paid, if they are to be paid through an intermediary company, any deductions or fees that will be taken and an estimate of what this means for their take home pay. All in all, there is a lot for retailers to get to grips with and to plan for over the next year.

Derogation for agency workers will mean pay parity after 12 weeks and a likely increased cost.

Matthew Lewis // matthew.lewis@squirepb.com // +44 113 284 7525

the retailer | winter 2019 | 35

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