This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Understand redundancy rights for agency workers in England and Wales, including how employment status affects statutory redundancy pay, equal treatment after 12 weeks, unfair dismissal protections, and practical steps for agency workers facing redundancy situations.
Agency workers form a substantial and flexible part of the UK labour market. When redundancy occurs, the rights of agency workers can be less straightforward than those of directly employed staff. This article explains how redundancy law applies to agency workers, what protections (if any) they have, how employment status affects redundancy rights, and practical actions individuals might consider if redundancy affects them while working through an agency.
Who Is an Agency Worker?
An agency worker is a person supplied by a temporary work agency to carry out work for a third‑party hirer. They are distinct from directly employed workers because their contract of employment is typically with the agency, not the hiring organisation. Agency workers generally have rights under the Agency Workers Regulations 2010 (AWR), but these rights differ from those of employees directly employed by the hirer.
Employment Status and Redundancy Rights
Agency workers' redundancy rights depend on their contractual and employment status:
- If the agency worker is employed by the agency under a contract of employment, they may acquire rights typical of employees (including redundancy rights) if they meet the relevant service thresholds.
- If the agency worker does not have employee status, they are usually treated as a “worker” or a casual contractor, which affects redundancy entitlement. Most agency workers fall into the latter category and therefore do not automatically qualify for statutory redundancy pay or unfair dismissal protections on the basis of agency work alone.
Redundancy Pay and Agency Workers
Statutory Redundancy Pay
Statutory redundancy pay is a statutory entitlement under the Employment Rights Act 1996 for eligible employees with at least two years' continuous service. It is not a right conferred simply by working in a role; it depends on being an employee in the legal sense and having qualifying service with the relevant employer.
Under the AWR framework, agency workers do not automatically gain employee status through their work for a hirer, and the AWR does not itself create redundancy rights such as statutory redundancy pay. Therefore, an agency worker whose only employment relationship is with the agency and who is not an employee normally cannot claim statutory redundancy pay from the hirer when an assignment ends.
If the agency worker has employee status with the agency and meets service requirements with the agency (for example, two years' continuous employment), they could be entitled to statutory redundancy pay through the agency but not from the hirer solely because of an assignment ending.
Contractual Redundancy Rights
Some agency contracts may include enhanced or contractual redundancy terms. If an agency worker has an employment contract that expressly provides redundancy rights with the agency, those contractual terms will apply between the worker and the agency. The existence and terms of any such redundancy entitlement depend entirely on the contract of employment with the agency.
Redundancy and the Agency Workers Regulations (AWR)
The Agency Workers Regulations 2010 give agency workers certain rights after a 12‑week qualifying period in the same role with the same hirer, principally equal treatment in pay and basic working conditions compared with direct employees. These equal treatment rights do not include redundancy pay or employment rights requiring continuous service with the employer, such as unfair dismissal rights or statutory redundancy pay.
In practical terms:
- After 12 continuous weeks in the same role with the same hirer, agency workers gain pay and conditions parity rights (such as basic pay and holiday entitlement).
- The AWR does not create rights to redundancy pay, extended family leave entitlements, enhanced sick pay, or company pension arrangements for agency workers on that basis alone.
Unfair Dismissal and Redundancy
To bring most unfair dismissal claims, a person must be an employee with qualifying continuous service (currently two years for ordinary unfair dismissal), unless the dismissal is for automatically unfair reasons such as discrimination or whistleblowing. Because many agency workers do not have employee status with the hirer or agency, they often lack both the status and qualifying service to bring a traditional unfair dismissal or redundancy dismissal claim.
However, where an agency worker is legally an employee of the agency and meets the qualifying period with that agency, they may be able to bring claims for unfair dismissal to an employment tribunal, including where a redundancy situation arises within that employment relationship.
Dismissal, Assignment End and Redundancy
Agency work often involves assignments rather than permanent employment with the hirer. When an assignment ends, it may be described as a termination of the engagement rather than a dismissal. Unless there is an employment contract or another legally enforceable contractual right, the hirer or the agency may end the arrangement without redundancy obligations.
An agency worker should consider:
- Whether the contract with the agency contains notice requirements or redundancy provisions.
- Whether they are an employee of the agency, which affects entitlement to statutory redundancy pay.
An assignment ending is distinct from a redundancy situation. Even when a hirer ceases to require agency workers because of a business change, redundancy pay and related rights do not automatically arise under the AWR unless contractual employee rights exist.
Practical Steps for Agency Workers Facing Redundancy
- Check your contract of employment or engagement with the agency to determine if you are an employee and what rights you have under that agreement.
- Determine your employment status, as employee status affects entitlement to statutory redundancy pay and unfair dismissal remedies.
- Review continuous service with the agency if you have employee status, to see if you qualify for statutory redundancy pay.
- Request a written explanation if redundancy is claimed or the assignment is ending, especially if you believe your status or rights have been mischaracterised.
- Seek advice early from organisations such as Acas or Citizens Advice, especially if your contractual status is unclear or you believe unlawful treatment has occurred.
Time Limits and Legal Actions
- Employment Tribunal Claims: If you are an employee of the agency and believe your redundancy dismissal is unfair and you meet service criteria, you generally have three months less one day from the date of dismissal to bring a claim to an employment tribunal.
- Contractual Claims: Contractual disputes over notice or redundancy may be pursued through civil courts, subject to longer limitation periods (typically six years) but depend on the existence and terms of a written contract.
Early advice and early conciliation through Acas are recommended before bringing tribunal claims.
Common Questions
Do agency workers have statutory redundancy rights?
Agency workers are not entitled to statutory redundancy pay under the AWR alone; such rights depend on whether they are employees of the agency with qualifying service.
Can agency workers claim unfair dismissal for redundancy?
Only if they have employee status and meet the qualifying period with the agency. Many agency workers do not meet these criteria, so they cannot bring traditional unfair dismissal claims related to redundancy from the hirer.
Do agency workers gain other rights after 12 weeks?
Yes. After 12 continuous weeks in the same role with the same hirer, agency workers gain rights to equal treatment in pay and certain basic conditions compared with directly employed colleagues, although redundancy pay is not included.
Key Takeaways
Agency workers in England and Wales have specific, limited rights relating to redundancy and employment protections. The Agency Workers Regulations 2010 grant certain equal treatment rights after a 12‑week qualifying period but do not confer redundancy pay or traditional unfair dismissal rights. Whether an agency worker can claim redundancy pay or challenge redundancy depends on their employment status and the terms of their contract with the agency. Agency workers who are employees of the agency-and who meet statutory qualifying requirements-may be entitled to statutory redundancy pay and unfair dismissal protections through their employment relationship with the agency. Anyone facing redundancy issues while working through an agency should carefully check contracts, determine employment status, and consider seeking early advice to understand their rights and options.
