Agency Worker Contracts in the UK: What Must Be Included?

An agency worker is someone supplied by a staffing agency to work temporarily for a hirer. The arrangement involves three parties: the worker, the agency (typically the employer for legal purposes), and the hirer (the business where the work is carried out).

This triangular structure is what distinguishes agency work from direct employment. The agency recruits, pays, and is responsible for the worker's terms of engagement. The hirer directs the day-to-day work. Agency workers who later transition into direct employment will typically move onto a permanent contract — a shift that comes with a substantially different set of rights and obligations. Our guide to fixed-term, permanent, and temporary employment contracts in the UK explains the key differences in detail.

The primary legislation protecting agency workers in the UK is the Agency Workers Regulations 2010 (AWR), which implemented the EU Temporary Agency Work Directive into UK law. Despite Brexit, the AWR remains in force and continues to govern agency worker rights in Great Britain.

The AWR establishes two tiers of rights: rights that apply from day one of an assignment, and enhanced rights that apply after 12 weeks in the same role with the same hirer.

The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the Conduct Regulations) also apply, setting out minimum standards for how agencies must operate and what information must be provided to workers before and during an assignment.

Under the Conduct Regulations, an employment business must provide the agency worker with a written statement before the start of their first assignment. This statement must include:

• Whether the worker is engaged as a worker or an employee of the agency
• The type of work they will be doing
• The location of the work
• The minimum rate of pay or the method by which it will be calculated
• The intervals at which pay will be made
• The notice period required to end an assignment
• Any entitlement to annual leave and how holiday pay will be calculated
• Any requirements relating to experience, training, or qualifications

Beyond this statutory minimum, a well-drafted agency worker contract should also address:

• The duration of the assignment, including any expected end date or review points
• The identity of the hirer, including the working address and contact details
• Health and safety responsibilities, including who is responsible for induction and site-specific training
• Expenses and deductions, including any fees charged for accommodation or transport where the agency provides these
• Confidentiality obligations in relation to the hirer's business information
• Conduct and performance expectations during the assignment

From the very first day of an assignment, agency workers are entitled to the following under the AWR:

• Access to the hirer's collective facilities and amenities, such as canteen, childcare facilities, car parking, and prayer rooms
• Access to information about vacant positions at the hirer, giving them the same opportunity as directly employed staff to apply for permanent roles
• Protection from unfair treatment for asserting their rights under the AWR

These day-one rights cannot be contracted out of. Any provision in an agency worker contract that purports to waive them is unenforceable.

After 12 weeks in the same role with the same hirer, agency workers are entitled to the same basic working and employment conditions as directly recruited staff, covering:

• Pay, including bonuses, overtime rates, and shift premiums linked to the work
• Working hours and rest breaks
• Annual leave, aligned with directly employed comparators
• Night work conditions where applicable

The qualifying period restarts if the worker takes on a substantively different role, or if there is a break of more than six weeks between assignments with the same hirer.

Until 2020, agencies could use a mechanism known as the Swedish Derogation to opt workers out of the 12-week equal pay entitlement. Under this arrangement, if the agency guaranteed a minimum level of pay between assignments, the worker could be paid less than directly employed comparators during assignments.

The Swedish Derogation was abolished by the Agency Workers (Amendment) Regulations 2019, effective 6 April 2020. Any contract still containing such provisions is now unlawful in respect of pay equality. Workers who were subject to Swedish Derogation contracts before abolition may be entitled to back pay if they were underpaid relative to comparable direct employees.

An agency worker who is treated in practice as a permanent employee — integrated into the team over an extended period — may be able to claim employee status through an employment tribunal, which carries significantly enhanced rights.

The agency is responsible for providing the written statement, paying the worker in line with AWR requirements, managing PAYE and National Insurance, and ensuring the worker has the right to work in the UK.

The hirer is responsible for providing day-one access to facilities and vacancy information, supplying accurate pay comparison data to the agency, and meeting health and safety obligations in the workplace.

Where a hirer fails to provide accurate pay information and an agency worker is consequently underpaid after 12 weeks, liability for the shortfall can be attributed to the hirer.

• Raise it with the agency first: a written complaint setting out the specific right at issue and the relevant regulation is the first step. Many issues are administrative rather than deliberate.
• Contact ACAS: before bringing a tribunal claim, workers must go through the ACAS early conciliation process. ACAS can help both parties reach a resolution without formal proceedings.
• Bring a tribunal claim: agency workers can bring AWR claims to an employment tribunal within three months of the alleged breach.
• Seek independent advice: Citizens Advice, trade unions, and employment law solicitors can all provide support. Union members should contact their representative at the earliest opportunity.

For agencies managing a volume of temporary placements, assignment confirmations, written statements, variations, and end-of-assignment notices all need to be issued, signed, and stored reliably.

Yousign's electronic signature platform allows agencies to send assignment documents for signature digitally, with workers able to review and sign on any device. Every document generates a legally valid audit trail under eIDAS regulation.

For agencies managing placements across multiple sites, this replaces paper-based processes with a centralised, searchable system that makes compliance documentation straightforward to produce when needed.

Agency work offers genuine flexibility, but that flexibility should not come at the cost of legal protections. The AWR gives agency workers meaningful rights — but only if those rights are known and asserted. Whether you are a worker checking your entitlements, an agency managing compliance, or a hirer overseeing temporary placements, understanding this framework is essential. If your contract does not reflect what the law requires, take advice early.