A Nottingham nurse has won a landmark ruling from an employment tribunal that for the purposes of transfers of undertakings, agency workers are employees.

The case has far-reaching implications for anyone who works through an agency, from admin staff to supply teachers. But with case law from 2004 implying that under certain circumstances a contract may exist between the organisation which contracts with the agency and the worker, the status of agency workers is becoming increasingly complex.

The case revolved around holiday pay. The original agency Sheila Ncabe worked for, 24/7 Healthcare Agency, provided paid holiday. But it became insolvent and was taken over by TrustHealthcare.

When Ms Ncube applied for holiday pay, she was told by TrustHealthcare that she was not entitled to it as she was a temporary worker, not an employee and when companies become insolvent they are not liable for temporary workers.

The Royal College of Nursing started legal proceedings and the tribunal ruled that Ms Ncube should be considered an employee of the agency; giving her the same entitlement as any other employee.

Kevin McNermey, RCN senior legal officer said: “The RCN is very pleased with the ruling; this will be a major breakthrough for agency nurses, who are not always recognised by agencies as employees, leaving them in a vulnerable position.

“This decision will be far-reaching not only nurses, but for supply teachers, admin staff and for anyone who is with a agency as they can have the same rights as employees – including maternity, paternity rights and holiday pay.”