Incomes

Agency Worker Rights UK — The 12-Week Rule, Pay, and Protections

Your rights as an agency worker in the UK — the 12-week rule for equal pay, holiday pay, sick pay, and what your agency and hirer must provide.

Around 1 million people in the UK work through employment agencies. You have specific legal rights from day one — and more rights after 12 weeks. Here’s what you’re entitled to.

Your Rights from Day One

Right Detail
National Minimum Wage / National Living Wage Must be paid for all hours worked
Paid holiday 5.6 weeks per year (28 days full-time equivalent)
Rest breaks 20 minutes after 6 hours, 11 hours between shifts
Working time limits Maximum 48 hours/week (unless you opt out in writing)
Protection from discrimination Same as any other worker
Health and safety protection Hirer must provide safe working conditions
Access to job vacancies Must be told about permanent vacancies at the hirer
Access to shared facilities Canteen, car parking, childcare facilities
Right to written terms Your agency must give you a written statement of terms

Rights After 12 Weeks (The 12-Week Rule)

After 12 continuous calendar weeks in the same role at the same hirer, you gain:

Right Detail
Equal pay Same basic pay as a comparable permanent employee
Equal overtime rates Same overtime and shift allowances
Equal bonus entitlement Same performance and annual bonuses
Same annual leave entitlement If permanent staff get more than 28 days, you get the same
Equal rest periods If permanent staff have longer breaks
Working time protections Same as permanent staff (night work limits, etc.)

What Counts Toward the 12 Weeks?

Situation Does the clock reset?
Continuous weeks in the same role No — keeps counting
Short break (up to 6 weeks) for any reason No — clock pauses, doesn’t reset
Break of up to 28 weeks for pregnancy/maternity No — clock pauses
Break for sickness or injury (up to 28 weeks) No — clock pauses
Break for jury service (any length) No — clock pauses
Workplace closure (e.g. Christmas shutdown) No — clock pauses
Break over 6 weeks Yes — clock resets to zero
Moved to a substantially different role at the same hirer Yes — new role, new 12-week count
New assignment at a different hirer Yes — different workplace, different count

Equal Pay After 12 Weeks

Pay element Must be equal?
Basic hourly/daily rate Yes — same as comparable permanent employee
Overtime rates Yes
Shift allowances Yes
Performance bonuses Yes (if linked to output)
Annual bonuses Yes (pro-rated for time worked)
Commission Yes
Vouchers (e.g. childcare vouchers) Yes — if given to permanent staff
Holiday pay Yes — if permanent staff get more than statutory
Occupational pension No — not covered by the regulations
Redundancy pay No — not covered
Maternity/paternity pay No — statutory minimums apply

How to Find Out What Permanent Staff Earn

Method Detail
Ask your agency They should request this information from the hirer
Check the company’s careers page May show advertised salaries for similar roles
Ask colleagues (carefully) You have a legal right to discuss pay
Submit a formal request Request the hirer’s pay information through your agency

Holiday Pay

Detail Information
Entitlement 5.6 weeks (28 days) per year — from day one
Calculation Based on average weekly earnings
Rolled-up holiday pay Some agencies include 12.07% in your hourly rate
Can you take actual time off? You should be able to book and take holiday
What if you’re not given holiday? This is a legal right — raise with your agency, then ACAS

Rolled-Up Holiday Pay Example

Detail Amount
Base hourly rate £12.00
Rolled-up holiday pay (12.07%) £1.45
Total hourly rate £13.45
But no separate paid holiday You’re not paid when you take time off

Sick Pay

Detail Information
SSP eligibility Average earnings of £123+/week
SSP rate £116.75/week
Who pays? Your agency (as your employer)
Duration Up to 28 weeks
If you don’t qualify Apply for UC or ESA

Pension

Detail Information
Auto-enrolment From day one (if aged 22+, earning £10,000+/year)
Minimum contributions 5% employee, 3% employer
Who provides it? Your agency (as your employer)
Workplace pension access (hirer’s scheme) Not required after 12 weeks — pension is excluded from equal treatment

Common Problems and Solutions

Problem What to do
Not being paid NMW Contact HMRC: 0300 123 1100
No holiday pay Raise with your agency → ACAS → employment tribunal
Not getting equal pay after 12 weeks Ask agency to confirm comparable permanent rates → ACAS
Agency says 12 weeks don’t apply (role changed) Challenge if the role is substantially the same
Hirer ends your assignment after you raise concerns This may be unlawful — contact ACAS about unfair treatment
Agency deducting fees for finding work Illegal — agencies cannot charge workers for finding them work
Agency withholding pay Contact ACAS and consider employment tribunal claim
Not told about permanent vacancies Raise with agency/hirer — this is a day-one right

Swedish Derogation (Abolished)

Detail Information
What it was A contract type that let agencies avoid equal pay after 12 weeks by paying between assignments
Current status Abolished from April 2020
Implication If you’re still on a “Swedish derogation” contract, it’s no longer valid — you should receive equal pay after 12 weeks

Agency Workers vs Other Worker Types

Feature Agency worker Zero hours Permanent employee
Employer The agency The company The company
Holiday pay Yes (from day one) Yes Yes
SSP Yes (if earnings qualify) Maybe Yes
Equal pay After 12 weeks No entitlement N/A
Unfair dismissal protection No (generally) After 2 years After 2 years
Redundancy pay No After 2 years (if employee status) After 2 years
Notice period As per contract (often 1 week) Statutory minimum Contractual
Pension auto-enrolment Yes Yes (if eligible) Yes