UK · Employment law

Agency worker rights

UK agency workers get basic rights from day one (minimum wage, holiday pay, working time, breaks) and equal treatment on pay, hours and holidays after 12 continuous weeks in the same role at the same hirer. The Agency Workers Regulations 2010 sit alongside the Employment Rights Act 1996.

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Day-one rights

From your first day at a hirer, as an agency worker you are entitled to:

  • National Minimum Wage / National Living Wage.
  • Statutory paid holiday - 5.6 weeks per year pro-rated.
  • Working time protections - maximum 48-hour week (unless opted out in writing), 20-minute rest breaks after 6 hours, 11 hours between shifts.
  • Access to the hirer's workplace facilities on the same basis as directly employed staff (canteen, car park, prayer room, on-site childcare).
  • Information about vacancies at the hirer - so agency staff can apply for permanent roles.
  • Discrimination protections under the Equality Act 2010.
  • Whistleblowing protections.

The 12-week rule

After 12 continuous calendar weeks in the same role at the same hirer, agency workers get equal treatment on:

  • Pay - including basic pay, overtime rates, holiday pay, shift allowances, unsocial hours premiums, bonuses linked to individual performance.
  • Working hours and duration of working time.
  • Paid annual leave beyond the statutory minimum where applicable.
  • Rest periods.

Not included in the equal treatment right: occupational sick pay, occupational pension (though auto-enrolment applies separately), notice pay, redundancy pay, contractual bonuses tied to length of service, share option and profit-sharing schemes.

How the 12 weeks are counted

Continuity is preserved through short breaks:

  • Weekly rest days do not break continuity.
  • Absence up to 6 weeks between assignments to the same role at the same hirer - continuity paused, then resumed.
  • Absence for sickness up to 28 weeks - continuity preserved.
  • Maternity, adoption, paternity leave - continuity preserved and the leave period counts.
  • Jury service - continuity preserved.

Employer attempts to break the 12-week period by rotating assignments or reclassifying roles are covered by anti-avoidance provisions (Regulation 9). Deliberate structuring to defeat the equal treatment rights can trigger tribunal claims.

The Swedish derogation - now abolished

Historically, agency workers on "pay between assignments" contracts (Swedish derogation contracts) were exempt from the equal pay right. The Agency Workers (Amendment) Regulations 2019 abolished this exemption from 6 April 2020. All new and existing agency worker contracts now attract equal pay rights after 12 weeks.

Notice and ending an assignment

Agency workers are usually employed by the agency, not the hirer. Notice on assignment ending is agency-contract specific, typically 24 hours to 1 week. On the standard temp-to-perm contract, either side can end an assignment with contractual notice.

Where the working pattern has stabilised into a settled role, tribunal status arguments arise: is the worker actually an employee of the agency, or in some cases of the hirer? Status matters for unfair dismissal (2 year qualifying period), redundancy pay and notice. Recent case law (Muschett, James v Greenwich, Cotswold Developments) has generally kept agency workers in worker status without going further.

Pay parity - how to check

Equal pay after 12 weeks means the same basic pay as a directly employed comparator doing broadly similar work at the hirer. Practical steps:

  1. Identify a directly employed comparator - similar role, similar hours, similar seniority.
  2. Ask the agency (Regulation 16 provides the right to information after 12 weeks).
  3. Ask the hirer directly for information on comparable pay if the agency does not have it.
  4. Where a gap exists, raise it with the agency in writing.
  5. If unresolved, ACAS Early Conciliation then tribunal claim under Regulation 18.

Umbrella companies

Umbrella companies employ the worker and invoice the agency (which then invoices the hirer). The worker gets a payslip from the umbrella. Umbrellas add PAYE compliance and administrative infrastructure to contractor arrangements. Legitimate umbrellas fully comply with tax and holiday pay rules. HMRC has been increasing enforcement against non-compliant umbrellas (particularly on holiday pay retention and false expense schemes).

Umbrella workers count as employees of the umbrella for statutory rights purposes. Equal treatment under the AWR still applies at the hirer level.

Bringing a claim

Common agency worker claims:

  • Failure to give equal pay after 12 weeks - tribunal claim under AWR Regulation 18.
  • Unpaid holiday pay - tribunal or unlawful deduction claim within 3 months.
  • Discrimination - Equality Act claim within 3 months.
  • Detriment for asserting AWR rights - AWR Regulation 17 detriment claim.

Both the agency and the hirer can be liable, jointly or separately depending on the breach. ACAS Early Conciliation is compulsory. See employment tribunal UK.

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Frequently asked questions

What are the day-one rights for agency workers?
Minimum wage, statutory holiday pay, working time protections, access to hirer facilities, information on hirer vacancies, discrimination and whistleblowing protection. Full equal treatment on pay and hours comes after 12 continuous weeks in the same role.
What does the 12-week rule mean?
After 12 continuous weeks in the same role at the same hirer, an agency worker gets equal pay and equal working hours compared to a directly employed comparator. Occupational sick pay, pension, notice pay and redundancy pay are excluded from the equal treatment right.
Does absence break the 12-week continuity?
Short breaks generally do not. Up to 6 weeks between assignments (in the same role at the same hirer) pauses continuity rather than breaking it. Sickness up to 28 weeks, maternity/paternity/adoption leave, and jury service all preserve continuity.
Am I an agency employee or an employee of the hirer?
Usually neither for full statutory purposes. Agency workers hold worker rather than employee status. In some cases, tribunal analysis of the actual working pattern establishes employee status of the agency; establishing employee status of the hirer is very rare. Employee status brings unfair dismissal protection and redundancy pay.
What happened to the Swedish derogation?
It was abolished from 6 April 2020. Previously, agency workers on pay-between-assignment contracts were exempt from the equal pay right. All agency workers now attract the equal pay right after 12 weeks regardless of contract type.

Sources and further reading

General information about UK employment law, not legal advice. For your situation, contact ACAS or an employment-law solicitor.