Make Work Pay: modernising the Agency Work Regulatory Framework

The regulatory framework which governs the temporary labour market includes a number of laws:

• the Employment Agencies Act 1973
• the Conduct of Employment Agencies and Employment Businesses Regulations 2003
• the Agency Workers Regulations 2010

The Employment Rights Act 2025 will now bring umbrella companies – a type of payment intermediary common in the agency work market – within scope of this framework. 

The government is now seeking views on:

• how the regulatory framework should be adapted to account for the activities of umbrella companies
• what broader changes should be considered in order to modernise the rules

The government’s priority is to keep providing robust protections for workers, including those who work through umbrella companies, while supporting a flexible, responsive temporary labour market that drives economic growth.

This consultation therefore asks questions relating to:

• strengthening security for agency workers and providing confidence for businesses
• providing greater transparency regarding information on pay, contracts, and employment rights
• empowering workers with greater choice in how they are engaged and paid
• updating and streamlining regulations to reflect current working practices and reduce unnecessary administrative burdens

We welcome responses from those likely to be affected by the proposed changes, including workers, businesses, and others who operate in, or represent, the temporary labour market.