Agency Workers Regulations Swedish Derogation Model

In a Nutshell

A way around AWR

In a Sentence

This is a work-around for contractors to avoid AWR benefits that originates from Sweden.

The Swedish derogation is an opt-out clause from European legislation that is intended to give contractors the same employment rights as equivalent permanent employees.

It means that the AWR rights to equal pay and conditions of an agency worker are negated when agency workers are employed on a permanent basis by an umbrella company (or temporary work agency) as long as they are paid between contract assignments.

Contractor Benefits

To qualify the agency worker needs to be genuinely employed by the umbrella company/agency with a permanent contract of employment and the contract is entered into prior to the start of the contract worker's first assignment.

The umbrella company will have to pay contractors in-between contracts if there's a gap and make sure the contractor is offered any available work. The responsibility that AWR imposes rests with the umbrella company.

How it Works

The contractor will enter into a permanent contract of employment with the umbrella company. The umbrella company then becomes responsible for paying the contractors' salary.

This reduces the recruitment agency's responsibilities and there's likely to be a closer professional relationship between recruitment agencies and umbrella companies.

Contract of Employment

The Contract of Employment will have to cover the following;

1. Client details
2. Minimum pay rates and how calculated
3. Work location and travel
4. Expected hours of work (minimum/maximum)
5. The type of the work to be undertaken

The Contract of Employment will also confirm the individual becomes an employee of the umbrella company and accepts the exemption from section 5 of the Agency Worker Regulations relating to equal treatment provisions on pay.

Equal treatment in respect of duration of statutory maternity pay, paternity pay, adoption pay, sick pay working time, night work, rest periods, rest breaks & paid annual leave still apply.