Understanding Health & Safety Responsibilities When Hiring Through Employment Agencies

Hiring new talent is always an exciting step for any business – it means you’re growing, adapting, or bringing in fresh expertise to meet your goals. If you’ve decided to work with employment agencies to source temporary or permanent workers in the UK, you’re in good company. Agency workers offer flexibility and quick access to skills, but it’s essential to understand the unique legal responsibilities that come with this approach, especially when it comes to health and safety.

If you’re wondering how health and safety laws interact with agency hiring, and what you need to do to protect your business and your workers, you’re in the right place. In this guide, we’ll break down the essentials: the typical agency arrangements, your legal obligations under UK law, and some best practices to help you stay compliant and protected from day one.

What Is Agency Work? Understanding The Basics

Let’s start by clarifying some key terms and concepts around employment agencies so you know exactly what you’re dealing with.

How Do Employment Agencies Work?

Employment agencies act as intermediaries between job seekers and businesses. They match businesses needing workers with people searching for jobs, whether that’s for temporary roles, fixed-term contracts, or permanent hires. Agency staff can be found in every sector: from hospitality and retail to construction and office administration. But regardless of the role, there are some core legal principles in play.

In the UK, employment agencies are regulated, and must comply with the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003. For agency workers, another centrepiece of the legal landscape is the Agency Workers Regulations 2010, which we’ll cover in detail later.

What Does An Employment Agency Do?

• Temporary Placements (Agency Work): The agency employs or contracts the worker, then supplies them to you (the hirer) for a set period, project, or as needed.
• Permanent Recruitment: The agency finds and screens candidates for permanent positions – once you hire them, they become your direct employees (not agency staff).

It’s worth noting that different legal rules may apply depending on which model you use. If you’re mainly bringing in agency workers for temporary or flexible roles, your health and safety responsibilities will be very similar to those for your own staff – even if you’re not their direct employer.

What Makes Agency Workers Different?

Agency workers are people who are supplied by an employment agency (sometimes called a “temp agency” or “employment business”) to work temporarily for you. They’re not usually your direct employees, but you still have significant legal duties towards them.

A typical agency worker arrangement looks like this:

• You (the hirer) request an agency worker for a set task, role, or period.
• The employment agency supplies the worker, handling their pay and certain HR functions.
• The worker performs their role at your workplace, supervised by your staff, and often has access to your equipment and facilities.

This triangle of responsibilities can blur the lines on who is in charge of what – which is why businesses often ask, “Do I have to worry about health and safety for agency staff?” The short answer: yes!

Your Health & Safety Responsibilities To Agency Workers

Whether you’re hiring agency workers for a one-day shift or a year-long project, you owe them a duty of care under UK health and safety law. Let’s break down what this means in practice.

Key Legal Foundations

• Health and Safety at Work etc. Act 1974: Sets out your duty to ensure the health, safety and welfare of all people affected by your work – including agency workers.
• Management of Health and Safety at Work Regulations 1999: Requires you to assess and manage workplace risks for everyone on site – agency staff included.
• Agency Workers Regulations 2010: Ensures that, after 12 weeks of continuous work in the same role, agency workers receive equal treatment (e.g., working conditions, facilities) as directly-employed workers.

Even though agency workers are paid by the agency, it’s you (as the hirer) who controls their working conditions day-to-day. That means you must treat them as if they are part of your own team when it comes to health and safety.

What Are The Core Health & Safety Duties?

When you engage agency workers, you (as the host employer) must:

• Provide a safe working environment (including suitable facilities and equipment).
• Carry out a risk assessment covering their activities, roles, and workplace hazards.
• Offer necessary health and safety information, instructions, and training relevant to their work.
• Ensure appropriate supervision and support.
• Consult with agency staff on matters affecting their safety and wellbeing.
• Report and record accidents/incidents that involve agency workers, just as you would for direct employees.

For temporary or short-term assignments, you’ll also need to communicate clearly with the agency, sharing information about workplace risks so that they can brief workers properly.

Who Is Responsible For What?

Both you and the employment agency share responsibility for agency workers’ health and safety. Here’s a simplified breakdown:

• The Employment Agency
  • Must check the worker’s suitability and provide information about the role and risks before placement.
  • Retains employment liability for pay and certain employment rights.
  • Should pass on any specialised health and safety requirements to the worker in advance.
• You (The Hirer/Host Employer)
  • Control the workplace, environment, and tasks assigned.
  • Are responsible for day-to-day health and safety – providing equipment, supervision, PPE (if needed), instruction and training.
  • Must ensure the agency worker is not exposed to risks that you haven’t properly managed.

In practice, you may agree with the agency on who will provide certain training or equipment, but under the law, you cannot contract out (or escape) your own responsibilities as a host employer.

What Else Do You Need To Know About Agency Worker Rights?

Agency workers in the UK are entitled to a core set of legal protections, even if they aren’t “employees” in the strict sense. Let’s look at some of those rights and how they intersect with your health and safety obligations.

Key Legal Rights For Agency Workers

• Minimum wage and statutory holiday entitlement from day one.
• Protection from discrimination and harassment under the Equality Act 2010.
• Right to work in a safe environment – including protections for whistleblowing and reporting unsafe conditions.
• After 12 weeks in the same role for the same hirer, entitlement to the same basic employment conditions (e.g., pay, annual leave and working hours) as direct staff, under the Agency Workers Regulations.
• Ability to bring claims relating to discrimination, wages, or health and safety failures to employment tribunals.

If something goes wrong and an agency worker suffers injury or unsafe conditions in your workplace, you could face enforcement action from the Health and Safety Executive (HSE), compensation claims, or even criminal liability if you are found to be at fault.

For more information on avoiding employment law mistakes, see this guide to UK startup legal pitfalls.

Benefits And Challenges Of Hiring Through Agencies

The appeal of employment agencies is clear: they make it fast and easy to add extra hands when you need them. But as with any business move, there’s a balance of pros and cons.

What Are The Advantages?

• Flexibility: Quickly scale your workforce for busy periods, specialist projects, or staff shortages.
• Reduced HR Admin: The agency generally manages payroll, basic HR documentation, and (in some cases) certain vetting processes.
• Expert Screening: Agencies can deliver pre-qualified candidates, reducing the time you spend on recruitment.
• Access To Specialist Skills: Easier to find rare or niche skillsets for one-off projects.

What Are The Drawbacks Or Risks?

• Higher Costs Long-Term: Agency fees add up and using temps for extended periods is often more expensive than direct hires.
• Cultural Fit: Short-term workers may not integrate with your team or culture as well as permanent staff.
• Legal Complexity: You must stay on top of health and safety, fair treatment, and anti-discrimination rules even for temporary placements.
• Shared Responsibility: Blurred lines between agency and hirer can lead to confusion if something goes wrong – and disputes over who is liable.

That’s why many businesses choose to review their arrangements and policies before bringing on agency staff. You can read more about legal issues for contractors and agency workers for further insights.

Best Practices For Managing Health & Safety With Agency Workers

It’s easy to overlook health and safety when you’re moving fast to fill a skills gap, but getting it wrong could lead to serious problems down the line. Here are some actionable steps to keep your business, and your people, safe and compliant:

1. Clarify Contracts And Written Agreements

Before engaging an employment agency, review their terms and agreements closely. Make sure your contract sets out who is responsible for what (training, PPE, accident reporting, etc.) and what you expect from each other regarding health and safety.

Don’t rely on templates or “off-the-shelf” agreements – having legally sound, tailored documents will protect you in case of disputes or incidents.

2. Communicate With The Agency (And The Worker)

• Provide the agency with details of any significant risks or specialist training required for your workplace.
• Ensure the agency passes this information to workers before assignment.
• Establish clear lines of communication for raising safety concerns or incidents.

Regular check-ins, especially in high-risk industries (like construction or manufacturing), can help pre-empt misunderstandings and keep everyone on the same page.

3. Induction And Training

• Give a proper induction to every agency worker on your site or in your business, covering your health and safety rules, procedures, and emergency arrangements.
• Offer role-specific training and access to resources they need to work safely (e.g., manuals, first aid, reporting tools).
• Don’t assume the agency or the worker already “knows the job” – you have a duty to ensure they are trained for your environment.

This is especially vital for new or young workers, or those from abroad who may be unfamiliar with common UK safety practices.

4. Supervision, Inclusion, And Support

• Include agency workers in staff meetings and briefings about health and safety.
• Check in regularly with agency staff to address any questions or issues.
• Create a workplace culture where agency workers feel empowered to report hazards or near-misses.

Remember: an agency worker injured at your site could still bring a claim against you, so it’s crucial they know how to access support and guidance right away.

5. Monitor And Review Your Arrangements

• Keep a record of all agency placements and the safety measures taken.
• Regularly review accident or incident logs for agency and non-agency workers.
• Be prepared to update your policies or training as business risks change.

You can find more about general health and safety in the workplace here.

Frequently Asked Questions: Agency Workers & Health and Safety

Do I Have To Treat Agency Workers The Same As Employees?

Yes – at least in all matters relating to health and safety, and after 12 weeks, for basic pay and conditions too. You can’t lawfully offer “second-tier” safety protection to agency staff.

Who Is Liable For Health And Safety Incidents: Agency Or Hirer?

Both have responsibilities, but the primary duty for the day-to-day workplace lies with you, the hirer. If you control the premises, processes, and equipment, you’re on the hook if health and safety standards aren’t met. However, the agency could be held liable for issues relating to checking suitability or failing to communicate risks.

Is It Cheaper To Use Agency Workers?

In the short term, agency workers may seem cheaper because you don’t pay NI contributions or provide benefits. However, agency fees, higher hourly rates for temps, and potential compliance risks can add up quickly – so it often makes sense only for genuine short-term needs. See our cost breakdown for small businesses for more details on budgeting for staff.

Can Agency Workers Claim Compensation If Something Goes Wrong?

Absolutely. Agency workers are protected by health and safety law and can claim compensation for workplace injuries, discrimination, or unfair treatment. This includes claims to tribunals for breaches of their most basic rights.

Key Takeaways

• The health and safety of agency workers is a shared legal responsibility between you (the hirer) and the employment agency. You can’t outsource your duty of care.
• Agency workers must receive the same health and safety protection, induction, and information as your permanent staff – and after 12 weeks, they should get the same pay and conditions.
• Clear communication between you and the agency is essential. Make sure you both know your responsibilities, especially around risk assessments and training.
• Have robust, tailored contracts in place with agencies. Don’t rely on generic documents, as they may not cover your business’s specific risks or needs.
• Invest in proper induction, training, and inclusion for agency staff – it will reduce risk, boost productivity, and protect your business from claims.
• If in doubt, seek experienced legal advice to review your arrangements and ensure you’re compliant from day one.

If you’d like further guidance on your health and safety responsibilities when hiring agency workers – or you need help with contracts, policies, or compliance – Sprintlaw’s friendly team can help. You can reach us on 08081347754 or at team@sprintlaw.co.uk for a free, no-obligations chat about your business needs.