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A health and social care agency supplies temporary workers to cover shifts and vacancies, while an employment agency places workers in permanent roles. This guide explains the key differences in how they operate, their regulatory frameworks and when to use each.
The distinction between a health and social care agency (supplying temporary workers) and an employment agency (placing workers in permanent roles) reflects a fundamental difference in the nature of the commercial relationship. Understanding this difference helps care providers choose the right type of agency for their specific need and understand the regulatory framework that governs each type of relationship.
SENDhelp supplies experienced, vetted care staff to health and social care providers across the UK. Whether you need registered nurses, support workers or specialist care staff, we can help you fill vacancies quickly and compliantly.
A care agency that supplies temporary workers to care providers operates as an employment business under the Conduct of Employment Agencies and Employment Businesses Regulations 2003. In this arrangement, the agency acts as the employer of the workers it supplies, or it operates as the hirer of workers on a self-employed basis. The provider pays the agency for the worker’s time and the agency pays the worker. The agency is responsible for ensuring the worker is compliant, trained and suitable for the role. The worker remains under the direction of the provider during the placement.
An employment agency introduces workers to care providers for the purpose of permanent employment. The employment agency receives a fee from the provider when an introduction leads to a successful permanent hire. The worker is then employed directly by the provider, not the agency. The employment agency’s role ends once the introduction has been made and the employment relationship established. Employment agencies are also regulated under the 2003 Conduct Regulations but with different obligations from employment businesses.
Under the 2003 Regulations, employment businesses have specific obligations including the requirement to pay workers even if the hirer does not pay the agency, restrictions on charging workers fees, requirements to provide written terms to workers and obligations about information provided to hirers about workers. Employment agencies have different obligations, including the requirement to notify both hirers and work-seekers of the fees they charge and to provide certain information about workers introduced for permanent employment.
Workers supplied by employment businesses have rights under the Agency Workers Regulations 2010. After 12 weeks in the same role with the same hirer, agency workers are entitled to the same basic working conditions as comparable directly employed workers, including the same pay, working hours and entitlement to facilities. Providers should understand their obligations under the AWR and should ensure that agency workers who qualify are treated in accordance with these rights.
Many care staffing agencies operate as both employment businesses and employment agencies, offering both temporary supply services and permanent placement services. This allows providers to use the same agency relationship for covering short-term gaps and for introducing candidates for permanent roles. Where an agency offers both services, the commercial terms for each should be clearly stated separately in the agency’s terms of business.
Providers that need to fill a shift urgently need a temporary supply service (employment business). Providers that want to recruit a permanent member of staff but need help sourcing candidates need an employment agency service. Providers that want to use an agency placement as an extended trial before permanent hire need a temporary supply service that includes a route to permanent employment (temp to perm). Understanding which type of service is needed guides the choice of agency and the commercial terms to negotiate.
For related information see our articles on Agencies in Health and Social Care Explained and Care Agency vs In House Recruitment.
A care agency (employment business) supplies temporary workers to fill shifts and short-term vacancies. An employment agency introduces candidates for permanent employment. Employment businesses remain the employer of the worker during the placement; employment agencies facilitate a direct employment relationship between the worker and the provider.
The Agency Workers Regulations 2010 give temporary agency workers rights to the same basic working conditions as comparable directly employed workers after 12 weeks in the same role with the same hirer. This includes equal pay, working hours and access to facilities. Care providers should understand their AWR obligations and ensure that qualifying agency workers receive the rights to which they are entitled.
Many care staffing agencies operate as both employment businesses (temporary supply) and employment agencies (permanent placement), offering providers both services under one relationship. The commercial terms for temporary supply and permanent placement are typically different and should be clearly specified separately in the agency’s terms of business.
Visit our Health and Social Care Agency Resource Hub for more guides on staffing, compliance, CQC standards, agency costs and how to choose the right care agency for your organisation.
The information in this article is provided for general guidance only and does not constitute legal, regulatory or professional advice. Regulations, rates and compliance requirements change: always verify current requirements with the relevant regulatory body. SENDhelp Education Limited accepts no responsibility or liability for any loss or damage arising from reliance on this content. Any links to third-party websites are provided for convenience only and do not constitute endorsement of their content.
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