Agency Workers Rights set to change in April 2020

Following the Queen’s Speech at the opening of Parliament last month, the Government has set out its proposals for new legislation it intends to introduce this year, including additional rights for agency and ‘gig economy’ workers.

Current rules dictate that employers pay those who earn varying amounts of money from week-to-week; particularly those on flexible contracts; holiday pay which equates to the average weekly wage they earned over the previous 12 weeks. Under the new rules, employers will have to calculate the average weekly wage from an entire year – 52 weeks – from April 6. This change is intended to improve rights for short term agency workers and those employed within the ‘gig economy’ who can often miss out on holiday pay due to the current rules.

Employers will also be required to provide a ‘statement of particulars’ from the first day of employment, which must include hours and days that the employee is required to work, entitlement to paid leave, and details of probationary period.

Additionally, the ‘Swedish Derogation,’ also known as ‘pay between assignments’ contracts previously allowed employees to relinquish their rights to the same pay as those doing equal work but on a permanent contract. This will no longer be permissible meaning that agency workers who have been in employment for 12 weeks will be entitled to the same pay as those on permanent contracts.

If you are an employer or an employee and would like to take advice on these legislative changes or any other employment matter then please contact one of our employment law specialists by calling 0191 263 6200.  Further information on the employment law services that we offer can be found by visiting our employment law page.

Sources: legislation.gov.uk, The Agency Workers (Amendment) Regulations 2019, Chroniclelive.co.uk, 3 January, ‘Worker’s rights – the new 2020 laws which could affect you at work’.