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Thursday, 4 October 2023

Agency workers: entitlement to equal treatment after 12 weeks

From 1 October 2023 agency workers are entitled to equal treatment after 12 weeks in the same job. This includes key elements of pay but also other entitlements such as annual leave. Find out more.

Basic terms and conditions

After 12 weeks in the same job with the same hirer you are entitled to the same basic terms and conditions as if you had been recruited directly.

These basic terms and conditions include:

  • basic pay, including holiday pay, overtime and bonuses linked to your performance
  • duration of working time – for example not having to work more than 48 hours a week if those directly recruited are not
  • annual leave (where this is above your legal entitlement you may receive an additional payment to cover this, paid as part of the hourly rate or at the end of the assignment)
  • night work
  • rest breaks and rest periods

After 12 weeks in the same job you are entitled to paid time off for antenatal appointments.

What is included in pay

Once the 12 weeks qualifying period has been reached the following are included in pay:

  • basic pay based on the annual salary you would have received if you had been recruited directly - this will usually be converted into hourly or daily rate taking into account any pay increments you would have received
  • overtime payments – subject to the same requirements as if you had been recruited directly
  • payment for annual leave
  • bonus or commission payments linked to the amount and quality of work you do eg achievement of sales targets
  • bonuses linked to personal performance or non contractual payments that are made with such regularity that they are a matter of custom and practice
  • vouchers or stamps which have a monetary value and can be exchanged for money, goods or services, eg luncheon vouchers, child care vouchers but not salary sacrifice schemes
  • paid time off for antenatal appointments

In some circumstances some of the payments will require a period of service. You will need to achieve that period of service to become eligible - the same as someone directly recruited.

Payments may not be made if you have left the job unless that is different from how a directly recruited person would have been treated.

For certain bonuses you will need to be 'appraised' to establish what bonus you should receive. You may be fully integrated into your hirer’s appraisal system or you may be appraised in a different way.

For example, your hirer might change their normal appraisal system to a shorter, simpler appraisal. Talk to the temporary work agency (often just called an agency) and/or hirer about how they will assess your performance.

What is excluded from pay

The following are excluded from pay:

  • occupational schemes – sick pay, maternity, paternity and adoption pay, but you may be entitled to statutory payments – check with your agency
  • redundancy and notice pay
  • payment for time off to carry out trade union duties
  • guarantee payments, as they apply to directly recruited staff if laid off
  • advances in pay, eg for season tickets
  • payments or rewards linked to financial participation schemes such as share ownership
  • the majority of benefits in kind, eg reduced-rate mortgages or employer-funded training allowances – however, benefits with monetary value are included in pay (see ‘What is included in pay’, above)
  • bonuses where there is no recognition of your personal contribution such as a flat rate bonus paid to the workforce to encourage loyalty or reward long service
  • additional, non-contractual bonuses as long as these payments are not made so often that they have become custom and practice

Agency workers will be covered by the new automatic pension enrolment which will be phased in from October 2012.

If you have a contract of employment with the agency you will be eligible for some of the above payments from the agency and not the hirer. You should check what kind of contract you have with the agency.

Working time entitlements

In addition to equal treatment on key aspects of pay you are also entitled to equal treatment after 12 weeks in the same job for:

  • working time (for example the same rest periods as those recruited directly)
  • night work
  • rest periods and rest breaks (for example, if you had been directly recruited you would have been entitled to a one hour lunch break)
  • annual leave (where this is above the statutory entitlement of 5.6 weeks)

Payment for statutory leave should be made when you take the leave. Where your leave entitlement is above the statutory minimum it might be included as a one-off payment. This payment can be at the end of the assignment or as part of your hourly/daily rate. It should be clear on your payslip that you have received the correct entitlement.

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