APSCo UK February Legal Updates

News & Blogs

By APSCo United Kingdom February 03, 2026 5 minutes read time

Share via:

The latest APSCo legal updates for February 2026

W/C 23rd February

APSCo Contract Template - Short notice cancellation compensation schedule for PAYE terms

As part of our recent contracts review, we have updated our standard PAYE Temporary Worker template to include a Short Notice Cancellation Compensation Schedule for zero hours arrangements.

This Schedule has been prepared in light of the government’s recent guidance under the Employment Rights Act 2025, which indicates that zero hour contractual arrangements entered into on or after 18 February 2026 should contain a provision addressing short notice cancellation compensation. However, the Regulations are not yet available and are not expected until next year. The right is therefore not yet in force. As a result, key aspects such as eligible workers / agency workers, the short notice period and payment amount are yet to be specified in regulations, together with some eligibility criteria. The government intends to consult on these issues. The Schedule has therefore been drafted broadly to reflect the limited government guidance currently available.

Members intending to use or adapt the Short Notice Cancellation Compensation Schedule should do so with the support of legal advice from a Legal Trusted Partner. The schedule and APSCo guidance notes are accessible on our Model Contracts Hub. Further guidance on this reform can also be found here.

For the avoidance of doubt, our standard PAYE template without the Short Notice Cancellation Compensation Schedule remains available for use.

DBT - New Employment Rights Act website

Following the passing of the Employment Rights Act 2025, the Department for Business and Trade issued new guidance to help employers and workers prepare for upcoming changes:

A new website is now live with clear timelines, a summary of key changes, and practical actions to take.
A stakeholder toolkit has also been published to help organisations share key messages and support members and clients in getting ready.
Further materials include updated factsheets and projected implementation timelines, building on last year’s Implementation Roadmap.

APSCo encourages members to explore the guidance and use these resources to prepare for the reforms.

DBT Engagement Meetings – Amending the Regulatory Framework

The Department for Business and Trade (DBT) will be arranging a series of engagement meetings over the coming months to discuss their approach to amending the regulatory framework. We would very much welcome your involvement.

If you are interested in taking part in the meetings with the DBT please notify shaziaimtiaz@apsco.org and we will be in touch shortly with further details.

Health and social care- Thursday 12th March at 10:00-11:00
Hospitality- Monday 16th March at 11:00-12:00
Teaching- Thursday 19th March at 10:00-11:00
Construction- Friday 20th March at 10:00-11:00

W/C 16th February

DBT Consultation - Fire and Rehire

The Department for Business and Trade (DBT) has issued a consultation on the new proposals covering “fire and rehire” under the Employment Rights Act 2025.

When these measures come into force, it will become automatically unfair to dismiss or replace employees in order to force changes to core contractual terms (referred to in the Act as “restricted variations”).

The consultation is seeking views on which expenses, benefits and shift pattern changes should fall within these protections. The deadline to respond 1 April 2026 and can be answered online.

DBT Consultation - Trade union revised code of practice and unfair practices in electronic ballots

The Department for Business and Trade (DBT) has launched a new consultation covering two areas of trade union rights:

updates to the code of practice on recognition and derecognition; and
proposals to address unfair practices in electronic ballots.

The code of practice review reflects upcoming changes in the Employment Rights Act 2025, with several reforms about trade union recognition and derecognition due to take effect from 6 April 2026.

The consultation also seeks views on legislation to prevent interference in electronic recognition and derecognition ballots, following signals that e-balloting could be introduced as early as August 2026.

The deadline to respond to the consultation is 1 April 2026 and can be answered online.

W/C 9th February

Consultation - Options for reform of non-compete clauses in employment contracts

This is a kind reminder that the Department for Business and Trade (DBT) has issued a consultation following their Working paper on options for reform of non-compete clauses in employment contracts.

The DBT is seeking views on potential reforms to non-compete clauses in employment contracts, with the aim of supporting economic growth and a more dynamic labour market. It outlines several policy options, including:

setting a statutory maximum duration for non-compete clauses,
banning them entirely,
restricting their use below a certain salary threshold, or
combining a salary threshold with a time limit.

APSCo held a virtual roundtable last month to gather members' input to feedback to the Government. Members are invited to provide feedback to the consultation which is open until 18 February 2026. You can respond directly via this link.

Consultation - Modernising the Agency Work regulatory framework

The Government has launched a consultation on “Modernising the Agency Work Regulatory Framework”, as part of its Make Work Pay agenda.

The consultation seeks views on strengthening protections for agency workers, including the inclusion of umbrella companies within scope of the Conduct of Employment Agencies and Employment Businesses Regulations 2003, while also reviewing the wider framework to reduce unnecessary administrative burdens for businesses.

APSCo will be holding a virtual roundtable discussion to obtain member feedback to help inform APSCo’s response to the consultation. The consultation is now open until 1 May 2026 and can be answered online.

W/C 2nd February

Education Sector Update: Increase in RM6376 Lot 1 Suppliers

Crown Commercial Service (CCS) has recently provided an update that the number of suppliers to be appointed to the RM6376 Supply Teachers and Education Recruitment framework Lot 1 will increase to 250. This is to support the Maximising Value for Pupils programme and anticipated increased framework use across up to 24,000 schools and academies nationwide. The procurement timetable remains unchanged, and there are no changes to Lot 2.

As a result of the increased number of suppliers, we expect a corresponding rise in demand for Compliance+ Education audit accreditation. We strongly encourage members to arrange your Compliance+ Education audits as early as possible to ensure you are fully prepared and to assist you to manage any last-minute pressure. Please contact compliance.audit@apsco.org

to arrange your Compliance+ Education audit.

APSCo Update: The Employment Rights Act 2025 - Zero-Hours Contracts and Recouping Short Notice Payments

The Employment Rights Act 2025 introduces a new right for eligible agency workers to receive a short-notice payment where a shift is cancelled, curtailed, or moved at short notice.

The applicable notice period, payment level, and eligibility criteria will be set out in secondary regulations, and the government has confirmed that it will consult on these regulations prior to implementation.

Responsibility for making the short-notice payment will sit with the recruitment business. APSCo recognises however, that in practice short-notice cancellations are often driven by client decisions, and this allocation of responsibility will therefore require careful consideration as the regulatory framework is developed.

We have produced an APSCo Update on the changes which can be accessed through our What’s New page.

APSCo Guidance on Statutory Sick Pay

The Employment Rights Act 2025 reforms Statutory Sick Pay (SSP) by removing the Lower Earnings Limit and ending the three-day waiting period, meaning SSP will be payable from day one of sickness for those eligible.

We have recently updated our APSCo Guidance on Statutory Sick Pay to reflect the upcoming changes in April 2026 which you can access through our What’s New page.