Agency Workers: Your Pay Explained

By Carmen Neagu, 28 April 2026

Worker or employee — why this matters for your pay

Before going through each type of pay and leave, it is important to understand one distinction that runs through all of it. Most agency workers are classed as workers, not employees. These are two different legal categories and the difference affects what you are entitled to.

As a worker, you have strong rights around pay. You are entitled to the National Living Wage, holiday pay, and statutory sick pay. You may also qualify for statutory pay when you have a baby, adopt, or need to take time off for neonatal care — as long as you meet the qualifying conditions for each. These pay rights belong to workers.

Leave rights are different. The right to take a protected period of time off and return to the same role — such as maternity leave, paternity leave, adoption leave, or shared parental leave — is generally a right that belongs to employees. Most agency workers cannot access these leave rights in the same way a permanent employee can. What you can do is agree time away from assignments with your agency, but that is a different arrangement and does not carry the same legal protections as statutory leave.

Throughout this newsletter, each section will tell you clearly whether the right in question applies to you as a worker, whether it requires employee status, or whether only the pay element is available to workers while the leave itself is not.

If you are unsure whether your agency classes you as a worker or an employee, check your written contract or ask the agency directly. Some agency workers are classed as employees of the agency, in which case more of the rights below will apply to you in full.

Holiday pay

Holiday pay applies to workers. This is one of your core entitlements from day one, regardless of how many hours you work or what your contract says.

You are entitled to 5.6 weeks of paid holiday per year. How that pay is calculated matters, and it is worth checking that yours is being done correctly. Your holiday pay should reflect your average earnings over the previous 52 weeks of work. This means that if you regularly work overtime or receive shift allowances, those amounts should be included in your holiday pay calculation. If your agency is only paying your basic hourly rate when you take holiday, and your normal earnings are higher than that, the calculation is likely to be wrong.

Rolled-up holiday pay

Some agencies use rolled-up holiday pay. This means instead of paying you separately when you take holiday, they add an extra amount to every payslip — usually 12.07% of your earnings. If your agency does this, it should be clearly shown on your payslip as a separate line. You should not see it bundled into your hourly rate without explanation.

After 12 weeks in the same role with the same company, your holiday pay entitlement should match what a directly employed member of staff in that role would receive. If the company offers enhanced holiday pay to its own staff, you should receive the same. If you are unsure how your holiday pay has been calculated, ask your agency for a written breakdown. You are entitled to one.

Statutory Sick Pay

Statutory Sick Pay applies to workers. If you are paid through PAYE, you are eligible.

From 6 April 2026, SSP changed significantly. It is now paid from the first day you are off sick. The previous rule that made you wait three days before receiving any sick pay has been removed entirely. The lower earnings limit has also been removed, meaning the previous threshold that excluded lower earners no longer applies.

The current SSP rate from April 2026 is £123.25 per week, or 80% of your normal weekly earnings, whichever is lower. So if you normally earn £200 per week, your SSP would be £123.25. If you normally earn £80 per week, your SSP would be £64, which is 80% of £80.

SSP is paid by your agency. If your assignment ends while you are off sick, your SSP entitlement may end at the same point. If you are unclear about this, ask your agency before your assignment is due to finish.

If you are paid through an umbrella company

If your wages come through an umbrella company rather than directly from the agency, your SSP entitlement should still apply. Ask the umbrella company for a written explanation of how SSP is calculated and when it would be paid to you. If the answer is unclear, contact ACAS or Citizens Advice.

Having a baby — pay and leave

This is where the distinction between worker and employee matters most, so it is worth reading this section carefully.

Maternity leave — employees only

Statutory Maternity Leave is a right that belongs to employees. Most agency workers are classed as workers, which means you do not have the right to take up to 52 weeks of protected maternity leave and return to the same placement afterwards. What you can do is stop taking assignments while you have your baby and return to the agency for work when you are ready. Your agency cannot discriminate against you for doing so, and you are protected from pregnancy discrimination from your very first day regardless of your status.

Statutory Maternity Pay — workers can qualify

Statutory Maternity Pay is a pay entitlement, not a leave entitlement, and workers can qualify for it. To be eligible you must have been continuously employed by the agency for at least 26 weeks before the 15th week before your due date, and your average weekly earnings over the eight weeks before that point must have been at least £129. This £129 figure is a hard threshold — if your average earnings were below it, you will not qualify for SMP regardless of how long you have been with the agency.

If you do qualify, SMP is paid in two stages over 39 weeks in total:

• For the first six weeks, you receive 90% of your average weekly earnings with no upper cap.

• For the remaining 33 weeks, you receive £194.32 per week or 90% of your average weekly earnings, whichever is lower.

The £194.32 flat rate is the maximum you can receive, not a guaranteed minimum. If your average weekly earnings were £150, then 90% of that is £135, which is less than £194.32, so you would receive £135 per week for those 33 weeks. If your average weekly earnings were £300, then 90% of that is £270, which is more than £194.32, but you would still only receive £194.32 because the flat rate is the ceiling.

The 39-week and 52-week gap

SMP covers 39 weeks only. If you take longer than that, the remaining weeks are unpaid. There is no statutory payment for that period unless your agency offers enhanced contractual maternity pay, which most do not. It is important to plan for this before you stop working.

If you do not qualify for SMP

If your earnings were below £129 per week, or you have not been with the agency long enough, you will not qualify for SMP. In that case, you may be able to claim Maternity Allowance instead. Maternity Allowance is paid directly by the government and has its own eligibility rules. It is worth checking on GOV.UK whether you qualify, as it can provide up to £194.32 per week or 90% of your average earnings for up to 39 weeks. If you do not qualify for SMP, your agency must give you a form called SMP1. You will need this to apply for Maternity Allowance, so ask for it.

Time off for antenatal appointments

Antenatal appointment rights apply to workers, though what you are entitled to depends on how far into your assignment you are.

From day one, you are protected from discrimination related to your pregnancy and you have the right to take time off to attend antenatal appointments. Before you have completed 12 weeks in the same role, this time off is unpaid. After 12 weeks in the same role with the same company, both the agency and the company are required to allow you paid time off during working hours. This includes travel and waiting time and cannot be covered by sick leave or annual leave.

Antenatal care includes GP and midwife appointments, antenatal classes, and parenting classes recommended by a doctor or midwife. Your agency can ask for proof of each appointment except the first. They cannot require the MATB1 certificate before you are 20 weeks pregnant.

If you are the partner of a pregnant person, you have the right to take unpaid time off for up to two antenatal appointments from the start of your assignment.

Paternity, adoption and parental leave

In this section it is especially important to be clear about what workers can access and what requires employee status. The consistent pattern across all types of family leave is this: the pay element is generally available to workers who meet the qualifying conditions, while the leave itself — meaning the protected right to take time off and return — is generally reserved for employees.

Paternity leave and pay

Paternity leave is a right that belongs to employees. If you are classed as a worker, you do not have the statutory right to take paternity leave in the same way. You can still arrange time off with your agency, but this is not the same legal protection.

Statutory Paternity Pay, however, can be available to workers who meet the qualifying conditions. From April 2026, you can request paternity leave from your first day with the agency if you are an employee. Statutory Paternity Pay still requires 26 weeks of continuous service before the qualifying week. The pay rate from April 2026 is £194.32 per week or 90% of your average weekly earnings, whichever is lower.

Adoption leave and pay

Adoption leave follows the same pattern. If you are a worker, you are not entitled to Statutory Adoption Leave, but you may qualify for Statutory Adoption Pay if you meet the qualifying conditions. The pay structure mirrors SMP exactly — 90% of your average weekly earnings for the first six weeks, then £194.32 per week or 90% of average weekly earnings, whichever is lower, for 33 weeks, with the same £129 earnings threshold and the same 39-week total. If you are the partner of the primary adopter, you may be entitled to up to two weeks of Statutory Paternity Pay instead.

Unpaid parental leave

Unpaid parental leave allows parents to take time away from work to care for a child. This is a right that belongs to employees. If you are classed as a worker, you do not have the statutory entitlement to unpaid parental leave, though you can of course discuss taking time off with your agency.

Shared parental leave and pay

Shared parental leave allows eligible parents to split up to 50 weeks of leave and 37 weeks of pay with their partner after a child is born or placed for adoption. The leave element is for employees. The pay element may be accessible to workers who meet the qualifying conditions, which are similar to those for SMP. From April 2026, the service requirement for shared parental leave was removed for employees, making it a day-one right. If you are considering this, check your eligibility carefully via GOV.UK or speak to ACAS, as the rules around notice can be complex.

Bereaved partner’s paternity leave

If a mother or primary adopter dies within the first year of a child’s life, the surviving partner is entitled to up to 52 weeks of unpaid leave. This right came into force in 2026. This is a leave right and applies to employees. If you are classed as a worker, speak to your agency about what arrangements can be made.

Neonatal care leave and pay

Neonatal care leave applies when a baby born who requires seven or more consecutive days of neonatal care within the first 28 days of life. Eligible parents can take up to 12 weeks of additional leave on top of any other leave they are already taking. The leave element is for employees. However, Statutory Neonatal Care Pay can be available to workers paid through PAYE who meet the qualifying conditions. The pay rate from April 2026 is £194.32 per week or 90% of average weekly earnings, whichever is lower. If this applies to you, speak to your agency and check the GOV.UK guidance.

Same-sex partners and civil partners

There is no legal difference in entitlement between same-sex and opposite-sex couples. UK law uses the word partner throughout family leave legislation and includes same-sex partners and civil partners in every area covered by this newsletter. If you are in a same-sex relationship and are unsure whether a right applies to you, the answer in almost every case is that it does, on exactly the same terms as it would for anyone else.

What to do if you think you are being underpaid

If something on your payslip does not look right, start by asking your agency for a written breakdown of how your pay has been calculated. This applies to your hourly rate, holiday pay, and any statutory payments. They are required to provide this.

If you have been in the same role for more than 12 weeks, ask your agency to confirm how your rate compares to directly employed staff at the company. They are required to carry out this comparison under the Agency Workers Regulations.

If the agency does not respond or does not resolve the issue, you can make a complaint to the Fair Work Agency, which has been operational since April 2026. It handles enforcement of minimum wage, holiday pay, and agency worker entitlements. You can submit a complaint via GOV.UK. ACAS also offers free advice and, if needed, free early conciliation before any employment tribunal claim.

Where to get help

ACAS — agency worker rights and pay: www.acas.org.uk/agency-workers

GOV.UK — Maternity Allowance: www.gov.uk/maternity-allowance

GOV.UK — Fair Work Agency complaints: www.gov.uk

Maternity Action — detailed advice on maternity and parental rights for agency workers: www.maternityaction.org.uk

Citizens Advice — free and confidential advice: www.citizensadvice.org.uk