New legislation (The Agency Workers (Amendment) Regulations 2019), will end the use of Regulation 10 of The Agency Workers Regulations 2010 which facilitated pay between assignments in lieu of the right to pay parity.  Contracts including this regulation are popularly known as Derogated Contracts, Swedish Derogation Contracts and Reg 10 Contracts.

  • Effective 6th April 2020, all temporary workers will qualify for pay parity from week 12 of their assignment
  • Employers must issue a written statement to advise employees on derogated contracts of their right to pay parity by 30th April 2020
  • Where current assignments run beyond 6th April 2020 the contract rate will need to be renegotiated to cover the additional costs
  • End Hirers will need to advise of the existence of a comparator or the appropriate comparator rate

The end of the use of derogated contracts will present an administrative burden for agencies and umbrella companies and recruiters who will need to establish comparator pay rates, issue a written statement to remove the contractual derogation and ensure that pay parity is paid from 6th April 2020.

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