The Swedish Derogation
This a process in which agency workers are not entitled to equal pay after the 12 week period – instead the worker is entered into a contract in which they are paid in-between assignments. The worker cannot be paid less than the minimum wage, and the contract must not be terminated less than 4 weeks after an assignment has finished. The only reason agencies can use the Swedish Derogation over AWR protocols is because of the pay received in between contracts. The pay however is most usually the £6.19 minimum, leaving workers unable to achieve anything more than living week-to-week.
An agency can work with an umbrella company in order to outsource their payroll. This means an external company will control temp payments. Most Umbrella companies use the Travel and Subsistence schemes (T&S – see below).
Travel and Subsistence Scheme. (T&S)
This scheme makes a temp eligible to claim back expenses such as travel costs and lunch allowances, however they will not accrue holiday pay and usually (however great the pay is made to look to the worker) the amount could work out to be less than minimum wage.
Agency Workers Rights (AWR)
These rights make an agency worker eligible to receive equal pay/working conditions as regular/pre-existing staff after 12 continuous weeks of employment.
Essential Recruitment do not work with Umbrella companies. We have our own accounts department at our Head Office. We do not abide by T&S schemes or Swedish Derogation contracts. We comply with AWR, and ensure our workers receive what they are entitled to – including holiday pay!
Here is the link to the full government site with everything you should need to know about your rights as a temporary worker. https://www.gov.uk/agency-workers-your-rights/your-rights-as-a-temporary-agency-worker