Agency worker rights

With different types of employment status in the UK, it’s important, as an employer, to understand the differences between them and what the law says about hiring under various employment contracts.

Agency workers are one type of worker with their own rights and regulations, protected by the Agency Workers Regulations 2010. In this guide we explore the rights of agency workers in the UK and the responsibilities of employers who opt to hire temporary staff via a recruitment agency.

What is an agency worker?

An agency worker is an individual supplied by a temporary work agency. They are contracted to work under this agency and are supplied to a hirer to complete work assignments. Whilst working for a hirer, they are supervised and managed by this business until they reach the end of their assignment.

Temporary agency work is typically short-term and spans between a few weeks to several months. Some agency workers may even be hired to cover leave such as maternity leave for permanent members of staff.

The following will also help you to differentiate an agency worker from another type of worker:

• They’re provided by an agency to work with you on a temporary basis

• You manage their work

• They’re not self-employed

An example includes:

A temporary warehouse worker supplied to a hirer. Supporting the business with an assignment to complete the picking and packing of goods for 3 months over the summer.

Key terms to remember:

• Temporary worker  – also known as a ‘temp’ is the worker supplied by an agency.

• Temporary Work Agency (TWA) – the agency which supplies agency workers.

• Hirer  – the employer hiring an agency worker.

• Assignment – the temporary work an agency worker does over a set period of time.

What does the law say about hiring agency workers?

The Agency Workers Regulations 2010 came into force in October 2011, creating new regulations for businesses and agencies to follow to protect agency workers.

Points covered by these regulations include:  

• Day one rights of agency workers

• Equal treatment

• Holiday entitlements

• Agency worker’s pay

• Working hours

The rights of agency workers

The Agency Workers Regulations 2010 provide workers the right to equal treatment for basic employment and working conditions. That’s after 12 weeks. But some rights are included as day one rights. Below we address all the rights of agency workers.

First off, do agency workers have rights? Of course. Employment agencies responsibilities towards them include:

• Finding work for free, but the agency can charge for services like CV writing.

• Providing written terms of employment.

• Making available relevant details (e.g. the start date) with a job offer.

• Communicating changes to terms and conditions.

But do agency works have rights from their first day of work? Yes. These are as follows:

• The use of shared areas and facilities.

• Information about job vacancies, but this doesn’t mean they’ll be suitable to apply for them.

Rights after 12 weeks

After 12 weeks they can claim equal treatment with employees. This includes considerations on agency workers’ pay rights:

• The same pay as your permanent employees doing the same job.

• Paid annual leave

• Time off with pay for ante-natal appointments.

• Bonuses of commission directly attributed to performance.

Holiday entitlement for agency staff

They’re able to take the minimum statutory 5.6 weeks of holiday (with pay).

After passing their 12-week qualifying period, they can claim pay and any other extra leave your business offers over the 5.6 weeks.

You can add this to the agency worker’s holiday entitlement, add it to their hourly-daily rate, or pay it at the end of their working period with you.

However, remember that any agency workers with a pay between assignments contract doesn’t have the right to claim the same holiday pay.

Maximum weekly hours for agency workers

The Working Time Regulations 1998 apply to agency workers meaning they cannot work more than an average of 48 hours per week unless an opt-out agreement has been signed.

After 12 weeks agency workers are entitled to the same working time such as breaks as a comparable permanent employee.

Sunday working for agency workers

Whether an agency worker works on a Sunday will depend on what is in their contract. Without written agreement, they cannot be made to work on a Sunday.

How to calculate agency workers 12-week qualifying period

You should start counting this period from their first day of work. The following will pause the clock of the 12-week period:

• A break of six weeks or less.

• Sick leave for up to 28 weeks.

• Annual leave.

• Jury service for up to 28 weeks.

• A planned shutdown (e.g. closedown for Christmas) or industrial action.

Updates to the Agency Worker Regulations 2010

In 2020 the Agency Worker Regulations were amended to ensure after 12 weeks all agency workers receive equal pay and working conditions to comparable, permanent employees. This means, even if the agency worker is on a ‘pay between assignments’ contract, they will still be entitled to equal pay after 12 weeks.

The importance of compliance

If an agency worker believes that they are not being treated equally in accordance with the Agency Workers Regulations 2010, they can make a legal claim against either or both the hirer and the agency.

If your business is not compliant with the regulations you run the risk of potential legal fees, compensation payments, and being taken to an employment tribunal.

Use HR software to streamline the hiring process of agency workers

With so many employment laws to keep up with, it can be difficult to ensure that your business stays HR compliant. But it doesn’t have to be complicated.

With the support of HR software, you can stay on top of all your HR responsibilities and legal requirements with a simple, all-in-one, digital solution.

From storing your employment contracts and employee records with unlimited HR document storage, to accessing the support of employment law experts, BrightHR is your one-stop shop for all your HR tasks. Including helping you stay legally compliant when hiring agency workers.

To see how BrightHR can help you, book a free demo today for a run-through of our award-winning HR software.