The Swedish Derogation Model

The Swedish Derogation Model (SDM) has been brought to light following the announcement of the plans to go ahead with the Agency Workers Regulations (coming into force on 1st October 2011), the SDM allows Umbrella’s, Agencies and Contractors an “opt-out” of Regulation 5.

Benefits of using the SDM:
• Permanent employment contract for each contractor
• Payments between assignments
• Greater support in finding that all important next role

The SDM allows us to employ you as a full time permanent employee of Maxim Finance Limited, you will receive an employment contract from us at the beginning of your first Agency Assignment, and the contract will work as an over-arching contract and allow you to move from role to role easily.

When you complete your assignment and are looking for your next role we will continue to make payments to you following your payment schedule for four weeks at a minimum of 50% of your on assignment wage or National Minimum Wage whichever is greater.

Maxim Finance will also be taking a more active role in securing your next contract; we have a vast number of agency contacts which we can approach on your behalf to source suitable roles for you. The SDM and AWR are predicted to make the Agency – Umbrella relationship stronger than ever before which will result in a smoother information flow and minimise breaks in employment.

What this means to Maxim
Maxim has chosen to adopt the SDM, all contractors currently working with Maxim Finance will have the option to move to the SDM route. We will be issuing contracts of employment to all of you for your review and signature over the coming weeks.


We will also be making contact with all of our Agencies and ensuring that we maintain complete compliancy with the new regulations on all levels in respect of equal treatment and payments.

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