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Employers – Are you relying on the Swedish Derogation?

Employers – Are you relying on the Swedish Derogation?

We would advise that you start to bring these changes in for new staff gradually before April’s deadline as failure to do so after this date, could result in tribunal claims.

Image of Donna Sharp

Director, KPMG Law

KPMG in the UK


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The Swedish Derogation

The ‘Swedish derogation’ in the Agency Workers Regulations 2010 (which currently provides an exception to the requirement to provide pay parity between agency workers and direct employees if certain conditions are met) will be removed on 6 April 2020.

What must employers do to comply?

By 30 April 2020, agencies must inform relevant agency workers with a Swedish derogation provision that, with effect from 6 April 2020, those provisions no longer apply.

This must be provided in writing. Employers who work with agencies, and rely on the Swedish derogation, will need to consider how to structure new engagement terms and issue and implement those terms with effect from 6 April 2020.

How can KPMG help?

KPMG advises on all aspects of employment law and provide a range of services in a practical and commercial manner. For further advice on the April 2020 changes, contact Donna Sharp, Director and Solicitor, Employment Legal Services at KPMG in the UK or email

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KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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