Agency Worker Rights and Contracts
Agency workers have specific employment rights. Understand the 12-week rule, Swedish derogation, and equal treatment requirements.
Agency workers have specific rights under the Agency Workers Regulations 2010. These rights apply from different points during an assignment.
Day One Rights
From the first day of an assignment, agency workers are entitled to:
- Access to facilities - canteen, childcare, parking, transport
- Job vacancy information - same access as direct employees
- 5.6 weeks paid holiday - statutory minimum
- Rest breaks - same as employees
- National Minimum Wage - appropriate rate
12-Week Qualifying Period
After 12 calendar weeks in the same role with the same hirer, agency workers gain:
Equal Treatment Rights
- Pay - same basic pay as a comparable direct employee
- Overtime rates - if applicable
- Shift allowances - if applicable
- Bonuses - linked to individual performance
- Holiday entitlement - if higher than statutory
- Vouchers - with monetary value
What Doesn't Count
The following don't need to be equal after 12 weeks:
- Occupational sick pay
- Pension contributions
- Redundancy pay
- Maternity/paternity pay beyond statutory
- Company car (unless part of salary package)
Calculating the 12-Week Period
The clock starts on the first day working for a hirer and continues unless:
Clock Pauses (Doesn't Reset)
- Sickness up to 28 weeks
- Annual leave
- Jury service
- Workplace closure (e.g., Christmas shutdown)
- Strike or industrial action
Clock Resets
- Break of 6+ weeks between assignments with same hirer
- New assignment with different hirer
- Substantively different role with same hirer
Anti-Avoidance Rules
Hirers cannot:
- Structure assignments to prevent the 12-week threshold being reached
- Move workers between roles solely to reset the clock
- Use multiple agencies for the same role to avoid equal pay
Such arrangements are unlawful and can lead to tribunal claims.
Comparable Employee
To establish equal pay rights, there must be a comparable employee who:
- Works for the same hirer
- Does the same or similar work
- Is directly employed (not agency)
If no comparable employee exists, agency workers may not be entitled to enhanced rates.
Written Statement
Agencies must provide agency workers with a written statement containing:
- Type of contract (contract for services or employment)
- How and when they will be paid
- Holiday entitlement and pay
- Notice periods
- Procedures for resolving disputes
Who Is Responsible?
| Right | Who Is Responsible |
|---|---|
| Day one rights (facilities, job info) | Hirer |
| Equal pay after 12 weeks | Hirer |
| Holiday pay | Agency |
| Written statement | Agency |
| NMW compliance | Both |
Making a Complaint
Agency workers can bring tribunal claims for:
- Failure to provide day one rights
- Failure to provide equal treatment after 12 weeks
- Being subjected to detriment for asserting rights
Claims must be brought within 3 months less 1 day of the alleged breach.
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Frequently Asked Questions
- When do agency workers get equal pay?
- Agency workers are entitled to equal pay after 12 weeks in the same role with the same hirer. This is known as the 12-week qualifying period.
- What is the Swedish derogation?
- The Swedish derogation was abolished in April 2020. It previously allowed agencies to avoid equal pay rules by offering permanent contracts with pay between assignments.
- Are agency workers entitled to holiday pay?
- Yes. Agency workers are entitled to 5.6 weeks paid holiday from day one, regardless of how long they've worked at a particular hirer.