The House of Commons Work and Pensions and Select Committee and the Business, Energy & Industrial Strategy Committee have recommended the end of the Swedish Derogation, a rule that means agency workers lose the right to equal pay. This echoes a call made in Matthew Taylor’s report into insecure work.
The Trades Union Congress (TUC) General Secretary, Frances O’Grady, said: “The Swedish Derogation creates an unequal workforce, denying agency workers the going rate for the job.
“Trade unions want it scrapped. As does the government-commissioned Taylor Review. And now two cross-party committees agree. It’s time for the government to act, and ditch this unfair loophole.”
Commenting on the committees’ call for a clearer definition of employment status, she said: “Employment status is complex, and can deprive people of their rights at work. So the committees are right to call for reform and wide consultation. The time has come for a Royal Commission, including trade unions and employers.”
* Read the Taylor Review of Modern Working Practices here
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