Agency Worker Regulations (AWR) Guide

Hiring temporary staff can give businesses the flexibility they need to adapt quickly, manage seasonal peaks or cover short-term absences. But with this flexibility comes legal responsibility. In the UK, agency workers are protected by the Agency Worker Regulations (AWR), a set of rules designed to ensure they are treated fairly and consistently.

For employers and HR professionals, AWR compliance is non-negotiable. The regulations set out what rights agency workers are entitled to, when those rights apply and which responsibilities sit with the hirer or the agency. Misunderstanding these obligations could expose your business to costly tribunal claims, reputational damage and even fines.

Here, we break down everything you need to know about AWR. From who is covered and how the 12-week rule works, to the key rights agency workers hold and the steps you can take to manage compliance. By the end, you’ll have a clear framework for managing agency staff confidently and legally.

What are the Agency Worker Regulations?

The Agency Worker Regulations (AWR) are a set of employment laws that came into effect in the UK in October 2010. They were introduced as a result of the European Union’s Temporary Agency Work Directive (2008/104/EC), which aimed to promote fair treatment for temporary workers across EU member states. Even after Brexit, the AWR remains part of UK law.

The legislation was created to tackle a long-standing issue: agency workers often faced poorer terms and conditions compared to permanent staff, even though they were doing the same job. The AWR helps level the playing field by giving agency workers the right to equal treatment in terms of pay and basic working conditions after a 12-week qualifying period.

In simple terms, the AWR is about fairness. They ensure that temporary staff are not exploited and that businesses treat them in line with their permanent workforce. For HR professionals, the regulations form a critical part of your compliance responsibilities.

Who is covered under AWR?

The Agency Worker Regulations do not apply to every type of worker, which is why it’s important to understand exactly who qualifies. To make this clear, we’ll look at the definition of an agency worker, the roles included and excluded, and the key differences between workers, employees, and contractors.

What is an agency worker?

An agency worker is someone who, has a contract with a recruitment agency (or umbrella company), is supplied by that agency to work temporarily for a hirer and works under the hirer’s supervision and direction

For example, a business may bring in a temporary receptionist through an agency. Even though the agency pays their wages, the receptionist works day-to-day under the direction of the business. In this scenario, the receptionist is an agency worker under AWR.

Roles included under AWR

• Temporary staff recruited through an employment agency.
• Agency workers employed via an umbrella company (where the umbrella is technically the employer).
• Some self-employed contractors if they are under the hirer’s direct control and do not provide their services through a genuine business-to-business contract.
  

Roles excluded from AWR

• Genuinely self-employed people who decide how, when and where they work (for example, a freelance web designer hired to deliver a project on their own terms).
• Contractors with their own limited companies if they operate outside employment law and fall under other frameworks such as IR35.
• Managed service contractors where an external business is contracted to deliver an outcome rather than supplying specific workers.
  

Worker vs employee vs contractor

Understanding the difference between these categories is crucial.

Category	Key Features	Rights	Covered by AWR?	Example
Employee	Has an employment contract, works regular hours, receives salary and benefits.	Full rights, including redundancy pay, notice, protection from unfair dismissal.	No, because they are permanent staff.	Permanent HR manager.
Worker	Provides work personally, under some control of the employer, may not have a full employment contract.	Core rights such as minimum wage, holiday pay, rest breaks, protection from discrimination.	Yes, if supplied by an agency.	Temp receptionist from an agency.
Contractor	Self-employed, in business on their own account, provides services to clients.	Limited rights (e.g. health and safety, anti-discrimination) but no entitlement to holiday or unfair dismissal protection.	No, unless they are effectively working as an agency worker.	Freelance IT consultant with their own company.

Misclassifying someone as self-employed when they should be treated as an agency worker is a common pitfall. It can expose your business to tribunal claims and financial penalties. For a deeper breakdown of misclassification issues, see our guide on disguised employment.

Employer and agency responsibilities under AWR

Both the hirer (the organisation where the worker is placed) and the agency (the business supplying the worker) share responsibility for compliance. The key is understanding who is accountable for what.

What employers need to provide

Hirers are responsible for ensuring that:

• Agency workers can access on-site facilities such as staff canteens, transport services, car parks and childcare from day one of their assignment.
• Internal job vacancies are communicated to agency workers on the same basis as permanent staff.
• Equal treatment in pay and working conditions is applied once the worker completes 12 weeks in the same role.

What recruitment agencies are responsible for

Agencies play a crucial role in ensuring compliance. They are responsible for:

• Paying agency workers correctly, including applying equal pay once the 12-week period is met.
• Providing agency workers with clear written terms and conditions at the start of their assignment.
• Communicating with hirers to gather information about the pay and conditions of permanent staff for comparison purposes.
• Ensuring holiday entitlement is provided and paid.

Area of responsibility	Employer (Hirer)	Recruitment agency
Day-one access to facilities	Yes	No
Equal access to job vacancies	Yes	No
Pay parity after 12 weeks	Must allow parity	Must administer correct pay
Written terms and conditions	No	Yes
Tracking the 12-week period	Shared	Shared

The AWR 12-week rule explained

The 12-week qualifying period is the most important part of the Agency Worker Regulations. It determines when an agency worker moves beyond basic “day one rights” (like access to facilities) and gains entitlement to equal treatment in pay and working conditions.

How the 12-week qualifying period works

• The rule applies once an agency worker has been in the same role with the same hirer for 12 calendar weeks.
• Weeks do not need to be consecutive. As long as the worker returns to the same role within six weeks, the clock continues from where it left off.
• Both full-time and part-time assignments count equally. A worker doing one day per week for 12 weeks still qualifies.

Example:
A call centre hires an agency worker three days a week. After 12 weeks, they qualify for the same pay and working conditions as a permanent call centre operative working full-time.

What counts towards the 12 weeks?

The qualifying period is more than just weeks physically worked. The law makes clear that certain absences still count:

• Any week where the worker performs at least one day of work.
• Statutory leave such as annual leave, maternity/paternity leave, adoption leave or parental leave.
• Sick leave of up to 28 weeks.
• Public holidays, if the assignment would otherwise have been ongoing.

This ensures workers are not disadvantaged by normal absence.

What pauses or resets the 12-week period?

Not every break in service stops the clock completely. Some pause it, while others reset it back to zero.

Resets the clock (12 weeks starts again):

• A break of more than six weeks between assignments with the same hirer.
• Moving to a substantially different role with the same hirer (different skills, duties or responsibilities).
• Starting an assignment with a completely new hirer.

Pauses the clock (12 weeks picks up where it left off when the worker returns):

• Sickness absence of up to 28 weeks.
• Jury service of up to 28 weeks.
• Annual leave.
• Shutdowns or workplace closures (for example, Christmas shutdown).

Example:

• If a warehouse worker takes two weeks of annual leave after six weeks on assignment, their clock is paused. When they return, they continue at week seven.
• If the same worker leaves the hirer for two months and then comes back, the clock resets. They start again at week one.

What changes after 12 weeks?

Once an agency worker hits the 12-week point, their rights expand significantly. They must be treated the same as a directly employed colleague doing comparable work. This includes:

• Equal pay: Hourly rates, overtime, holiday pay and performance-related bonuses must match permanent staff in the same role
• Annual leave entitlement: Must be at the same rate as permanent colleagues (beyond the statutory minimum if the employer offers more)
• Rest breaks and working hours: The same rules on breaks, shift lengths and maximum weekly hours apply
• Bonuses and commission: Where these are linked to the individual’s performance, they must be applied equally (company-wide profit share schemes may be excluded)

Example:
An agency worker in an admin role is paid £11 per hour for the first 12 weeks. Permanent colleagues doing the same job earn £13 per hour. After 12 weeks, the agency worker must also receive £13 per hour.

Key rights for agency workers

Agency workers are entitled to a set of legal protections from the very first day of their assignment, with additional rights applying once they complete the 12-week qualifying period. These rights are designed to make sure temporary staff are treated fairly and consistently, even when they are not directly employed by the business they are working in.

Day one rights

From their very first day, agency workers must be given access to the same collective facilities as permanent employees in comparable roles. This includes staff canteens, childcare services, parking spaces, transport services such as shuttle buses and workplace amenities like gyms or break rooms. Denying access to these facilities could amount to a breach of the regulations.

Day one rights also cover access to internal job opportunities. Agency staff must be told about vacancies within the business so that they have the same chance to apply as directly employed colleagues. This provision is designed to prevent agencies or hirers from keeping opportunities hidden from temporary staff, which could otherwise limit their career progression.

Rights after 12 weeks

Once an agency worker has completed 12 calendar weeks in the same role with the same hirer, they are entitled to equal treatment in relation to pay and basic working conditions. This means they should be paid the same as permanent colleagues doing the same work, including overtime rates, shift allowances or additional holiday entitlement above the statutory minimum.

Rest breaks and working hours are also covered. If permanent staff in comparable roles enjoy longer rest periods or more favourable working arrangements, agency workers must be treated the same once they meet the 12-week threshold.

Performance-related pay can also fall under equal treatment. If a business rewards staff through productivity bonuses, commission or incentive payments linked to personal output, agency workers must be included once they qualify. Broader benefits such as share options or profit-sharing schemes may not be included under AWR, as these are not directly tied to individual performance.

Rights linked to family and wellbeing

Pregnant agency workers are entitled to paid time off to attend antenatal appointments, provided they can show proof of their appointments when asked. This protection applies regardless of how long they have been in post, ensuring that temporary staff are not placed at a disadvantage when it comes to health and family responsibilities.

The right to be informed

Agencies and hirers have a duty to make sure workers understand their entitlements under AWR. This means explaining how rights change over time and setting out clearly when equal treatment applies. Failing to communicate this can create confusion, grievances and in some cases tribunal claims if workers feel they have been misled about their legal rights.

Why these rights matter

In practice, this means an agency receptionist should be able to use the canteen from their first day and after 12 weeks they must also receive the same pay rate as a directly employed receptionist. The regulations do not take away the flexibility of temporary staffing, but they ensure that flexibility cannot be used as a reason to treat agency workers unfairly.

AWR and other legal frameworks

The Agency Worker Regulations sit alongside other employment laws and overlaps can cause confusion. Understanding how they interact is vital for compliance.

AWR and IR35

IR35 assesses whether contractors working through a limited company are genuinely self-employed. Contractors inside IR35 are not automatically excluded from AWR. If they are supplied by an agency or work through an umbrella company under a hirer’s direction, AWR will likely apply. Each case should be assessed individually to avoid misclassification.

AWR and TUPE

TUPE protects employees when a business or service transfers, but agency workers are not covered because they are not employed by the hirer. However, if an agency worker continues in the same role after a transfer, their 12-week qualifying period under AWR usually carries over.

AWR and employment law

Agency workers are also covered by wider protections such as the Equality Act, Working Time Regulations and National Minimum Wage Act. Complaints about unequal treatment may therefore fall under multiple frameworks, so employers must consider AWR alongside broader employment law.

Agency workers and umbrella companies

Umbrella companies add another layer of complexity. The umbrella may employ the worker, but the hirer still has responsibility for ensuring equal treatment under AWR. Clear contracts and communication between the hirer, agency and umbrella company are essential to avoid disputes.

What happens if you don’t comply with AWR?

Ignoring the Agency Worker Regulations can expose both hirers and agencies to serious risks. Workers who believe their rights have been denied can take claims to an employment tribunal, which may result in back pay, compensation for lost benefits and in some cases, awards for distress.

The financial cost is only part of the problem. A breach can damage your reputation, making it harder to attract both temporary staff and clients. Agencies that fail to meet their obligations may also face disputes with hirers over liability, leading to expensive legal battles.

Most breaches happen by accident, often due to poor tracking of the 12-week rule or confusion over responsibilities. The best protection is clear processes, strong record-keeping and close collaboration with compliant agencies.

How to manage AWR compliance

Compliance with the Agency Worker Regulations does not need to be complicated, but it does require structure. Many breaches occur not because of bad intent but because of poor processes or unclear responsibility between the hirer and the agency. Putting the right systems in place can help protect your business, avoid tribunal claims and maintain a strong reputation as a fair employer.

Review contracts with agencies

Start with clear agreements. Contracts should set out exactly which party is responsible for pay, benefits and tracking the 12-week qualifying period. Without written clarity, disputes can arise if a worker challenges their treatment. Work only with recruitment partners who demonstrate a strong understanding of AWR.

Track the 12-week rule accurately

The 12-week qualifying period is the most common area where employers slip up. HR teams must be able to record start dates, breaks, role changes and cumulative service across assignments. Even short-term or irregular work contributes to the total. Using workforce management software is one of the most reliable ways to stay on top of qualifying periods.

Audit worker treatment regularly

Conduct periodic reviews of pay, holiday entitlement, rest breaks and access to facilities for agency workers. Compare them to equivalent permanent staff to ensure parity is being met. Keeping an audit trail also strengthens your defence if a worker ever raises a claim.

Train line managers

Managers are often closest to agency staff and play a key role in day-to-day compliance. Training should cover how to integrate agency workers fairly, when to escalate concerns and what changes are required after 12 weeks. A lack of awareness at management level is a frequent cause of unintentional breaches.

Strengthen HR systems

Manual tracking and paper records make compliance difficult. Digital tools like HR software can automate much of the process, from flagging approaching qualifying periods to ensuring correct pay. Investing in better systems saves time, reduces risk and demonstrates that your organisation takes worker rights seriously.

Proactive compliance is always cheaper than fixing problems after the fact. By working transparently with agencies, training your managers and using the right digital tools, your business can protect itself from costly disputes while building trust with your temporary workforce.

AWR Compliance: Protecting People and Profit

Compliance with the Agency Worker Regulations is not just a legal obligation—it is a smart business strategy. By treating agency workers fairly from day one, businesses build trust, improve morale and attract high-quality temporary talent. Skilled workers are more likely to stay on assignments, reducing recruitment costs and minimising disruption.

Following AWR also protects your reputation. Agencies and hirers who fail to comply risk tribunal claims, financial penalties and negative publicity. Being known as a fair and compliant employer strengthens your brand and makes it easier to secure the best talent in a competitive market.

Equally important is operational efficiency. Clear processes, accurate record-keeping and the right digital tools ensure your business can track 12-week qualifying periods, manage pay parity and avoid accidental breaches. Employment Hero’s HR software and workforce management solutions make this simple, helping HR teams stay on top of compliance while reducing administrative burden.

Ultimately, AWR compliance benefits everyone. Workers feel valued and fairly treated, managers can operate with confidence and your business safeguards itself from legal and reputational risks while improving workforce productivity. With Employment Hero, managing compliance becomes a seamless part of running a modern, people-focused business.