Magazine article Management Services

Agency Workers Are Being Paid Less for Doing the Same Jobs

Magazine article Management Services

Agency Workers Are Being Paid Less for Doing the Same Jobs

Article excerpt

It's a simple principle: two people working alongside each other doing the same job should get the same pay rate.

But too often agency workers are getting paid much less than directly employed staff for doing the exact same work. This is because of a legal loophole known as the 'Swedish derogation', which lets agencies and employers avoid paying agency workers the going rate.

A new report by the Trades Union Congress (TUC) published March, shows agency workers getting trapped in insecure, underpaid jobs long-term. The report highlights how some employers use agency workers to reduce their wage bill and undercut the pay and conditions of directly employed staff.

Workers under the legal loophole of derogation suffer a significant pay penalty. The TUC has evidence of agency workers earning up to ? …

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