Archive Website of the UK government

Please note that this website has a UK government accesskeys system.

Archive brought to you by Cross Stitch UK

Main menu

Wednesday, 3 October 2023

Working out your employment status: agency workers

If you are not sure whether you are an 'employee', 'worker' or 'self-employed' you can read the statements below to help you decide. If you think the majority of the statements apply to you, then it is likely that you are a worker.

Agency workers or 'temps'

If you agree with most of the statements below, there is a strong likelihood that you are a worker.

  • you undertake work for a business (or multiple businesses) through a recruitment agency (also known as an 'employment business')
  • your contract with the recruitment agency states that you are not their employee
  • your contract with the recruitment agency does not guarantee that they will find you work
  • you can decide whether or not to accept or refuse work
  • the employment agency pays your wages and deducts tax and National Insurance
  • the employment agency pays you when you are on holiday or pays you in lieu of accrued holiday at the end of your contract
  • you can leave the employment agency or a particular assignment giving little or no notice
  • the hirer (eg the end user business you work for) can terminate an assignment giving little or no notice
  • you have signed on the books of several employment agencies
  • you work on a variety of assignments through the year for different companies

The lack of day-to-day control by the agency whilst you are on assignment usually prevents you from being their employee. Equally, you are not an employee of the business you work for, because there is no obligation to offer or accept work.

As an agency worker, there are special requirements for the recruitment agency to deduct tax and National Insurance from your wages. This, in itself, does not mean that you are an employee.

Agency workers could be offered an employment contract by a recruitment agency and would therefore become the agency's employee.

The statements above use the example of work undertaken for a 'company'. However, they apply equally if you work for a sole trader, partnership or any other form of business organisation.

Example situation

If you are not sure whether you are an agency worker, you can read the example situation. If it describes something similar to your working arrangement, it is likely that you are an agency worker.

Amelia is employed by a high street recruitment agency that pays her wages. She works on temporary, office-based assignments, covering for employees who are ill or on holiday. She has worked for a number of companies through the agency and occasionally accepts work through a different agency. Her agency provides details of a particular job and Amelia can then decide whether or not to take it. Sometimes her agency is not able to offer her any work at all.

Employment rights for agency workers

Like other 'workers', you will be entitled to receive Statutory Sick, Maternity, Paternity and Adoption Pay where applicable. There are also additional rights for agency workers, to protect you when using employment agencies.

Where to get help

If the example or statements do not describe your work situation, try reading the other articles in this section.

If you have read the other articles and you are still not clear, contact Acas (the Advisory, Conciliation and Arbitration Service). They are able to offer free, confidential and impartial advice on all employment issues, including work status.

Access keys