Agency Workers Regulations

What are the Agency Worker Regulations?

There are approximately 1.3 million agency workers in the UK who are predominantly engaged as a means of achieving flexible staffing solutions. Under the Agency Workers Regulations 2010 which came into force on 1 October 2011, these agency workers will benefit from improved rights.

The regulations can be split into two main categories; 'basic working and employment conditions' and 'ancillary rights'.

Basic Working and Employment Conditions

In short, the Regulations provide agency workers with the same basic working and employment conditions after a 12 week qualifying period as would apply to employees fulfilling the same role. A 12 week qualifying period will remain irrespective of whether the individual works full-time or part-time.

There are anti-avoidance provisions in the Regulations which will prevent hirers from avoiding the rules by using policies such as rotating agency staff between jobs to ensure that they never accrue the requisite 12 week qualifying period.

The definition of basic working and employment conditions can be split into three main categories:

Pay – includes basic pay plus other contractual payments linked to work undertaken by the agency worker. The Regulations specifically exclude a number of payments and rewards, for example, occupational pensions, occupational sick pay, other forms of bonus which reflect long-term performance, contractual notice pay, contractual redundancy pay and benefits in kind, such as car allowances or health insurance.

Duration of working time, overtime, breaks, rest periods and night work. Businesses and agencies will need to ensure that agency workers that are entitled to equal treatment are on the same working hours, rest periods and break provisions as employees carrying out comparable work.

Annual leave - agency workers will be entitled to a statutory minimum holiday entitlement from their first day of engagement pursuant to the Working Time Regulations 1998. However, additional contractual holiday entitlement will now also accrue after the 12 week qualifying period.

Ancillary Rights

The Regulations provide ancillary rights to agency workers. From 1 October 2011, therefore agency workers should have access to facilities, such as canteens, transport services and childcare facilities, on the same terms as those employed by a business directly. This right will exist from the start of an agency worker’s engagement and is not subject to a qualifying period. Agency workers will also accrue from the first day of their assignment the right to be informed of employment opportunities with the hirer.

Scope of the Regulations

The Regulations cover agency workers who find temporary work through an employment business (more commonly known as temping agencies) which introduces workers to hirers for temporary work only. The Regulations will not protect people seeking permanent employment through employment agencies (more commonly known as recruitment agencies). The self-employed, directly employed casual workers, those working through their own limited company, and agency workers on managed service contracts are also outside of the scope of the Regulations.

Unitemps, the University’s temporary staffing agency, are covered by the Regulations. For further information about Unitemps see www.unitemps.co.uk

Impact of the Regulations

Initial responsibility for ensuring equal treatment of agency workers lies with the agency, unless it has taken reasonable steps to obtain the information it requires from the hirer. Once a hirer has provided relevant information about the basic working and employment conditions and any comparable employees to the agency and set the appropriate conditions, the agency will be liable for any breach once the qualifying period has passed. Any liability for failing to comply with the Regulations could be costly, as there is no maximum limit to compensation awarded to successful claimants.

Guidance for Recruiting Managers

For further guidance for recruiting managers please visit the following webpage.

Information for Agency Workers

Induction information for Agency Workers is available on the following webpage.