Staffing Agency Contract Template for England and Wales

A staffing agency contract is the agreement between the agency and its client hirer, covering the terms on which workers are supplied. It differs from an employment contract (which is between the agency and the worker) in that it sets out commercial terms: fees, liabilities, assignment management, and the right to substitute workers. The agency typically holds separate written terms with each individual worker it places.

The Conduct Regulations require the agency's contract with the client to specify the nature of the work-seeker services being supplied, the fee structure and payment terms, the minimum period for which the client will pay for an assignment, the notice period required to end an assignment, and the basis on which the worker can be replaced if the client is unhappy with performance.

Not exactly. A staffing agency contract typically covers the supply of individual workers, whereas a master services agreement (MSA) sets the overarching terms governing multiple or ongoing service arrangements. In larger staffing relationships, parties often use an MSA for the framework terms and individual assignment schedules or statements of work to confirm the specifics of each placement.

That depends on the control exercised over the worker. If the client directs and controls the worker's day-to-day tasks, courts may treat the client as having sufficient control that vicarious liability for the worker's acts rests with the client. The agency should include an indemnity from the client for losses arising from the client's direction of the worker and from negligent instructions given by the client.

The agency can charge a transfer fee if the client directly hires a placed worker, but cannot prevent the direct hire outright. Under regulation 10 of the Conduct Regulations, if the client provides the worker with an extended hire period through the agency (at least eight weeks), no transfer fee is payable. The contract should state the fee scale and the extended hire alternative to comply with this rule.

Agency workers accrue statutory annual leave entitlement (5.6 weeks per year, pro rata) from day one. The agency, as the worker's employer or engager, is responsible for calculating and paying holiday pay. The contract should address how the agency recovers this cost from the client, typically through an uplift on the hourly charge rate or a separate holiday pay element itemised in the invoice.

The contract should clarify that the client has the right to require the agency to remove a worker from an assignment for unsatisfactory conduct or performance, but the formal disciplinary process remains with the agency as the worker's employer. The client should notify the agency before acting on performance concerns, and the agency should investigate before the formal step of ending the assignment.

The agency is responsible for conducting right-to-work checks before a worker starts an assignment, under section 15 of the Immigration, Asylum and Nationality Act 2006. The contract should confirm this responsibility sits with the agency and include an indemnity protecting the client from civil penalties if the agency fails to carry out proper checks. This is a legal requirement, not an optional contractual term.