Pay & rights

Your rights as a temp or agency worker

The yournextjob Team Updated 10 July 2026 4 min read

Temporary and agency work gets a bad reputation it does not always deserve. It is flexible, it is often the fastest way into a workplace, and many temp roles turn permanent. But because the arrangement involves you, an agency and a hirer, it is easy to lose track of who owes you what. The good news is you have real legal rights, some from your very first day. Here is what they are.

Who this covers

This guide is about agency workers: you are supplied by a recruitment agency to work temporarily for a hirer, but the agency pays you. This is different from being directly employed on a fixed-term contract, and different again from being genuinely self-employed. If an agency finds you the work and pays your wages, the rules below apply to you.

Your rights from day one

From the first day of an assignment you are entitled to:

  • At least the National Minimum Wage or National Living Wage for your age.
  • Paid holiday. You build up holiday entitlement from day one, based on the hours you work. It should be either paid when you take it or shown clearly and paid as "rolled-up" holiday pay.
  • Payslips showing your pay and every deduction.
  • Rest breaks and protection under working time rules.
  • Use of shared facilities at the workplace, such as the canteen, car park and childcare, on the same basis as permanent staff.
  • To be told about permanent vacancies at the hirer, so you have the chance to apply.
  • Protection from discrimination and, in most cases, from unlawful deductions from your wages.

The 12-week rule

This is the big one. Under the Agency Workers Regulations, once you have worked in the same role for the same hirer for 12 continuous calendar weeks, you become entitled to the same basic pay and conditions as if the hirer had recruited you directly. That includes equal pay for the same job, the same paid annual leave and rest breaks, and the same treatment on things like bonuses linked to your work. Short breaks (for example holidays or certified sickness) usually pause the clock rather than reset it, so you do not lose your accrued weeks. Keep a record of your start date and the weeks you work, because this right is easy to overlook and worth real money.

The Key Information Document

Before you start with an agency, they must give you a Key Information Document. It sets out, in one place, who pays you, your rate, how you are paid, any deductions or fees, and holiday entitlement. Read it carefully. If the headline rate looks high but the document reveals margins and deductions that shrink it, you now know the real figure before you commit.

PAYE versus umbrella companies

Agencies usually offer a choice of how you are paid, and it affects your take-home and your rights:

  • PAYE: the agency pays you directly, deducting tax and National Insurance at source. Simpler and safer, with holiday pay and pension handled for you.
  • Umbrella company: a separate company employs you and runs your payroll, often for a weekly margin. This can be legitimate, but check the margin, make sure holiday pay is recorded properly, and be wary of any scheme promising unusually high take-home, as these can be tax-avoidance arrangements that leave you liable later.

For most temporary workers, straightforward PAYE is the least hassle and protects your entitlements.

Common problems and how to handle them

  • Missing holiday pay. You are entitled to it. Ask for it in writing and point to your payslips and the Key Information Document.
  • Unexpected deductions. Deductions must be lawful and explained. Query anything you do not recognise.
  • Being let go to avoid the 12-week rule. Deliberately ending assignments to dodge equal treatment can be unlawful. Keep records of your assignments and dates.

Where to get help

If something is not right, raise it with the agency first, in writing, so there is a record. If that does not resolve it, ACAS offers free, confidential employment advice and can help with disputes, and the government's Employment Agency Standards Inspectorate regulates agencies. You do not have to accept being short-changed just because the work is temporary. Knowing your rights, and keeping simple records of your dates, hours and pay, puts you in a strong position to insist on what you are owed.

Frequently asked questions

What is the 12-week rule for agency workers?

After 12 continuous calendar weeks in the same role for the same hirer, you are entitled to the same basic pay and conditions as a directly recruited employee, including equal pay and holiday.

Do agency workers get holiday pay?

Yes. You build up paid holiday from your first day based on the hours you work. It is either paid when you take leave or shown and paid as rolled-up holiday pay.

What is the difference between PAYE and an umbrella company?

With PAYE the agency pays you directly and deducts tax at source. With an umbrella company, a separate firm employs you and runs your payroll, often for a margin. PAYE is usually simpler and safer.

Where can I get help if my agency underpays me?

Raise it with the agency in writing first. If it is not resolved, ACAS offers free confidential employment advice, and the Employment Agency Standards Inspectorate regulates agencies.

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