Managing Agency Workers and Integrated Contractor Staff

Agency Workers in Brief

Agency Workers Regulations 2010 give equal treatment on basic conditions after 12 weeks. Whoever they are paid by, agency workers are part of the organisation while they are on site and the same H&S duty applies.

Managing Agency Workers and Integrated Contractors

Many organisations rely on workers who are not their direct employees but are integrated into their teams. Agency workers are supplied by an employment agency or business for short-term or ongoing placements. Integrated contractors (sometimes called labour-only sub-contractors) are self-employed individuals working under day-to-day direction from the hiring organisation.

From an operational perspective, these people are often indistinguishable from employees. They sit alongside the team, use the same equipment, follow the same processes and contribute to the same output. That means the management system needs to account for them even though the employment relationship is different.

Agency Workers and Integrated Contractors - Different Status, Similar Duties

Although agency workers and integrated contractors are not direct employees, the organisation still has significant duties towards them while they are working for the business:

Health and safety duties under the Health and Safety at Work etc. Act 1974 apply to anyone carrying out work for the business, not just direct employees.
Equality and non-discrimination duties under the Equality Act 2010 apply to agency workers, contractors and self-employed individuals.
Worker consultation under ISO 45001 Clause 5.4 covers workers under the organisation control, not only direct employees.
Specific protections under the Agency Worker Regulations 2010 apply to agency workers, including equal treatment on core terms after 12 weeks.

Outside the UK, equivalent duties apply in most jurisdictions, with different specifics around equal treatment and non-employment status.

Managing Agency Workers and Integrated Contractors Day to Day

The practical arrangements for managing agency workers and integrated contractors typically cover several areas:

Onboarding - a site induction covering rules, hazards, emergency procedures and the work being done, even if shorter than the full employee induction.
Competence and qualifications - checks that the person has the required competence for the work, either provided through the agency, the contractor arrangement, or verified directly.
Supervision - clear line of responsibility for day-to-day direction, with someone on site responsible for their work.
PPE and equipment - arrangements set out in advance so it is clear who provides what.
Information security - access to systems, devices and data handled in line with ISO 27001 controls, with access removed promptly when the assignment ends.
Reporting - clear route for the worker to report hazards, near-misses, incidents or concerns through the same system as direct employees.

Where agency workers or contractors are on site long-term, consider whether they should be included in team meetings, consultation arrangements, training, and anything else where their exclusion would create gaps in the management system.

Managing Agency Workers and Integrated Contractors in the Management System

The management system needs to know these workers exist. The competency matrix should include everyone whose competence affects the output, not just direct employees. Risk assessments should reflect the actual people on site, including any short-term or agency staff. Consultation arrangements should include them where practical.

At the same time, integrated contractors and agency workers sit separately from the core employee processes like appraisal, disciplinary and grievance. The agency or contractor relationship has its own route for handling performance and conduct concerns, and that route should be clear to everyone.

Visitors and short-term contractors who are not integrated into the team (for example a one-off visit by an engineer) are covered by the separate managing visitors and contractors article and do not need the full set of arrangements described here.

We treat agency workers and integrated contractors as part of the team for safety, training and consultation. They get a proper site induction, they are included in toolbox talks, and they have the same route for raising concerns. The employment relationship is different but the duty of care is not.

Where we have contractors on site long-term, we keep them on the competency matrix and include them in H&S reviews. Leaving them out is a visible gap when we get audited.

H&S duties under the 1974 Act apply to anyone carrying out work for the business, whether or not they are directly employed. That includes agency workers, labour-only sub-contractors and self-employed individuals on site. Getting the paperwork right is important but so is making sure the person actually knows the rules on the ground.

Agency workers sit in an interesting space in the management system. They are not your employees, but they are workers under the organisation control for ISO 45001 purposes. The standards expect you to identify them, assess their risks, consult them and make sure they are competent. The agency relationship does not remove any of that.

If someone is doing your work, in your workplace, using your systems, they need to be part of how you manage the work. The contract with the agency or the contractor is a separate thing from the day-to-day management. Keep the two clear and you avoid most of the common problems.

Practical Compliance Guidance

Section 3.1 of the IMS1 IMS Manual covers the management of staff, including agency workers and integrated contractors where they are part of the day-to-day team.

Several alphaZ documents support the management of agency workers and integrated contractors:

alphaZ document	How to use it
ISO 9001, 14001 & 45001 IMS Toolkit	The complete toolkit for an integrated management system covering quality, environment and health and safety.
ER3 Key Supplier and Contractor Register	Register for tracking agencies, contractors and other third parties providing workers or services to the organisation.
P-50 Contractors Policy	Policy covering how contractors are engaged, managed and monitored, including integrated contractors.
ER2 Staff Training Competency Matrix	Register for mapping roles against competence requirements, including agency workers and contractors on longer-term assignments.
F-Q4 Staff Induction Record	Induction record template that can be adapted for agency workers and integrated contractors joining the team.
F-HS16 Contractor OH&S Appraisal	Appraisal form for evaluating contractor occupational health and safety arrangements before engagement.

Note - all the above files can be downloaded with an alphaZ subscription.

Frequently Asked Questions

Who is responsible for agency worker health and safety?

In the UK, both the agency and the hiring organisation have duties towards the agency worker under health and safety law. The hiring organisation has day-to-day responsibility for the working environment, equipment and supervision. The agency has responsibility for supplying a competent worker and providing basic information. The two roles are complementary and need to be clear in the arrangements with the agency.

What are the Agency Worker Regulations 2010?

The UK Agency Worker Regulations 2010 set out rights for agency workers, including the right to equal treatment on basic terms (pay, working time, holidays) after completing 12 weeks in the same role. Day-one rights include access to collective facilities and information about vacancies. The hirer and the agency share responsibility for compliance.

Should contractors be on the training matrix?

Integrated contractors on longer-term assignments should usually be included in the competency matrix if their competence affects the management system output. One-off visitors or short-term specialists are usually tracked through the supplier or visitor records instead. The line between the two depends on how integrated the contractor is in day-to-day work.

How is disciplinary handled for agency workers?

Agency workers are not employees of the hiring organisation, so the hirer disciplinary process does not apply to them. Conduct or performance concerns are typically raised with the agency, which handles them under its own arrangements. The hirer can request a particular worker is replaced or the assignment ended, but the employment relationship remains with the agency.

UK Legislation

The following UK legislation is relevant to managing agency workers and integrated contractors. Organisations outside the UK should identify the equivalent legislation applicable in their jurisdiction.

Further Resources