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More than 100,000 agency workers could benefit from “trailblazing reforms”

Almost 300,000 workers who previously did not receive a payslip will now do so starting from this week, including those on casual and zero-hours contracts.

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120,000 agency workers could benefit from the scrapping of the Swedish Derogation
120,000 agency workers could benefit from the scrapping of the Swedish Derogation

This new right ensures that all workers receive a payslip, which forms part of the government’s Good Work Plan.

 

It means payslips will now include the number of hours worked, making it simpler for workers to make sure they are being paid in full, and at the correct rate.

 

The Department for Business, Energy & Industrial Strategy (BEIS) said ministers have also brought into law “a package of trailblazing reforms, which will give workers groundbreaking new rights”.

 

BEIS said this includes the repeal of the Swedish Derogation – a legal loophole that enabled some companies to pay agency workers less than permanent staff – and a new entitlement to a day one statement of rights setting out details of a new employee’s leave allowance.

 

Business secretary Greg Clark said: “The UK has a labour market that it can be proud of and we are committed to continue leading the way in workers’ rights. That is why we have introduced a new right for all workers to a payslip ensuring workers are paid fairly.”

 

Last week, parliament approved the first package of Good Work Plan legislation, which means:

•Around 1.5 million people are to receive a day one statement of rights setting out leave entitlements and pay;

•All workers will be better protected from employers who have demonstrated malice, spite or gross oversight, with the maximum additional penalty that Employment Tribunals can use quadrupling from £5,000 to £20,000;

•Up to 120,000 agency workers will benefit from the scrapping of the Swedish Derogation – an end to the legal loophole which enables some firms to pay agency workers less than permanent staff;

•New agency workers will also benefit from a key facts page before signing up with an agency, which will provide clarity, particularly around their pay;

•Employees will have a stronger voice in the workplace. Employees already have a legal right to make a request to be informed and consulted about issues at work and the threshold for them to request these arrangements will be reduced from 10 percent to two percent.

 

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