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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 specialists Citation 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.
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