Derogation Model
The Derogation model essentially removes people from the scope of AWR by offering them overarching employment. Delivering the derogation model will demand continuous management of contract status, clear communication between employer and employee, and most importantly an understanding of the financial implications for all parties.
Combining our standard umbrella model with the derogation model creates a number of options for agencies to minimise the impact of AWR administration and costs. To ensure complete compliance it is necessary to firstly understand the requirements of the end user. Once established as a viable solution Pulse will construct the financial model with an agency to determine the pay structure.
The flexibility of the Pulse structure enables us to incorporate full analysis of contract length and combine this with a recalculation of pay to include the statutory 4 week’s pay between assignments as part of their contracted pay or make payments at the end of the contract term.
This ultimately eliminates the obligation to pay additional funds whilst the contractor is between assignments. If this is not possible due to pay rates being too low, or contract commitment is too short, Pulse will provide a full impact assessment to identify the most appropriate solution.
The Derogation model requires intensive administrative control, and with so many variances in contract length and pay rates, this model should not be seen as a simple solution to AWR. However, our unique online platform ‘Insight’ allows Pulse and our agency partners to clearly communicate, manage and audit the Derogation model ensuring compliance.
