Holiday Pay and Sick Pay for Agency Workers: Know Your Rights

Agency workers have the same fundamental rights to holiday pay and sick pay as everyone else, but the way these are calculated and paid can be confusing. Here is what you are legally entitled to.

Holiday Pay

Your Entitlement

All workers in the UK are entitled to 5.6 weeks of paid holiday per year (28 days for full-time workers, pro-rated for part-time). This includes bank holidays. It does not matter whether you are permanent, temp, full-time, or zero hours — the entitlement is the same.

How It Works for Agency Workers

There are two common methods:

• Rolled-up holiday pay: an extra 12.07% is added to your hourly rate. So if your base rate is £12/hr, you receive £13.45/hr inclusive of holiday pay. The catch: when you take time off, you are not paid again — your holiday pay has already been included
• Accrued holiday: your holiday pay is set aside and you can book paid days off. This is the method the government recommends, though rolled-up pay remains legal following a 2024 ruling

Check your contract to see which method applies. If you are on rolled-up pay, your payslip should show the holiday element separately.

Calculating Your Holiday Pay

Holiday pay should be based on your normal weekly pay, including regular overtime and commission. It is not just your basic rate. If you regularly work 45 hours per week but your contract says 37.5, your holiday pay should reflect the 45 hours.

Sick Pay

Statutory Sick Pay (SSP)

You are entitled to SSP if:

• You are off sick for 4 or more consecutive days (including non-working days)
• You earn at least £123 per week on average
• You have done some work for your employer

SSP is £116.75 per week (2025/26 rate) and is paid from the 4th qualifying day — the first 3 days are unpaid waiting days. It can be paid for up to 28 weeks.

Company Sick Pay

Most agency workers receive SSP only. Some long-term agency assignments and permanent roles offer enhanced company sick pay that starts earlier and pays more. This is one of the genuine advantages of permanent employment.

After 12 Weeks: AWR Rights

After 12 calendar weeks in the same role with the same client, the Agency Workers Regulations give you the right to equal treatment with permanent staff doing the same job. This covers:

• Basic pay (including overtime rates)
• Working hours and rest breaks
• Annual leave entitlement
• Access to collective facilities and amenities

If you believe your rights are not being met, raise it with your agency first. If unresolved, you can contact ACAS (0300 123 1100) or make a claim to an employment tribunal.