Fact Service April 2019

Issue 15

Changes under Good Work Plan 


The so-called Swedish derogation will end next year, the government has confirmed. However, details on the legislation is still lacking, as new payslip reforms take effect under the government’s Good Work Plan.


The Swedish derogation rules currently mean agency workers do not need to receive the same pay and conditions as employees in the company they are assigned to, as long as they are paid between assignments. 


It has been estimated that around 120,000 workers are currently affected by the derogation, which the government has now confirmed will end in April 2020. But experts said they were concerned by the lack of detail on how agency workers will be treated, and which rules they will be governed by after this point.


Parliament has approved the first package of the Good Work Plan, including bringing into force an entitlement to a day one statement of rights detailing a new employee’s pay and holiday allowance. 


This part of the plan, which came into effect on 6 April, means more than 300,000 workers who previously did not routinely receive a payslip will now do so, including those on casual or zero-hours contracts.


Payslips now also need to state the number of hours worked, making it easier for workers to ensure they are paid in full and at the correct rate.


www.peoplemanagement.co.uk/news/articles/swedish-derogation-will-end-next-year