APSCo UK January Legal Updates

W/C 26th January

• Clearer explanation of key requirements, reducing complexity,
• A new, streamlined three-step test to help organisations identify restricted transfers,
• A brief guide, quick-reference FAQs, and a glossary for non-specialists

W/C 19th January 

Reed Screening Essential Guide for UK Businesses on Making Hiring Safe

Hiring fraud is an increasingly sophisticated and widespread risk, with organised criminals exploiting recruitment processes through tactics such as fake candidates, AI-generated CVs, and reference fraud.

This new guide from Reed Screening, developed with leading anti-fraud bodies and supported by government, provides practical, expert-led advice to help members spot red flags, strengthen hiring controls, and protect their organisations from serious financial and reputational harm.

You can access the guide through our What’s New page.

W/C 12th January

1. HMRC VAT Policy Update – Locum Doctors

 APSCo is engaging with HMRC to seek urgent clarity on the policy paper issued in December 2025 regarding the VAT treatment of locum doctors.

There is an immediate need for detailed HMRC guidance on how output tax can be reclaimed in an expedited and practical way, supported by properly resourced HMRC teams and a clear, transparent process. HMRC must also revisit its position on input tax, as the inability for recruitment businesses to reclaim this would result in a significant and permanent negative impact on healthcare recruitment; an outcome we do not believe HMRC can have intended. It is essential that HMRC guidance clearly addresses not only the treatment of historic claims, but also how both output and input tax should be treated going forward.

APSCo is working closely with other trade bodies to ensure a consistent and coordinated approach, recognising the strength of a unified sector response. In the absence of detailed operational guidance from HMRC, members should exercise caution before implementing any material changes to existing processes, while continuing to consider your obligations under the HMRC’s December 2025 policy position and taking appropriate professional advice.

We will continue to update members as discussions with HMRC progress. You can also read our media response and coverage on the topic here.

2. RM6397 Survey - NHS Workforce Alliance Clinical and Non-Clinical Temporary and Permanent Staff

Crown Commercial Service (CCS) has invited suppliers to provide feedback following the recent RM6397 supplier webinar. CCS is seeking market insight to support the design and implementation of the RM6397 framework, ensuring it meets customer requirements and supports effective recruitment delivery.

APSCo encourages members to participate in this exercise and share practical insight from across the market. Member input will help inform the development of a framework that works for customers, suppliers, and the wider recruitment sector.

Members are invited to complete the RM6397 Market Feedback Survey by 17:00 (BST) on Friday 30 January 2026 and further details can be found through our What’s New page.

3. The Employment Rights Act 2025

The Employment Rights Bill completed its passage through Parliament on 16 December 2025 and received Royal Assent on 18 December 2025, becoming the Employment Rights Act 2025. The Act introduces wide ranging changes affecting employment status, worker protections, enforcement, and trade union rights.

We have produced an APSCo Update on the Act covering the key measures and the next steps members should consider which can be accessed it through our What’s New page.

4. Young People and Work Report: Call for Evidence

In November 2025 the government commissioned the Right Honourable Alan Milburn to author a report that will seek to:  

• understand the drivers of the increase in the number of young people who are Not in Education, Employment or Training (NEET), including those claiming health and disability benefits and childhood experiences 
• investigate the root causes of this rise in economic inactivity among disabled young people and those with health conditions 
• make recommendations for policy responses aimed at increasing opportunities for young people 

The  Call for Evidence seeks evidence and insight from anyone with relevant lived experience, knowledge and expertise to inform the discovery phase accessed here.

Please submit your evidence to youngpeopleandwork.report@dwp.gov.uk by Friday 30 January 

W/C 5th January

1. How to spot a recruitment scam

As we start 2026, we want to draw your attention to recruitment scams which unfortunately continue to be prevalent.

We have recently received reports of scams involving requests by clients for the link(s) to the job advert published by the recruitment company so that the client can share the link with their contractors to apply for the role. Once the contractors have been selected by the clients and once payments are due, the client will raise an issue for refusing payment or, sometimes disappear, leaving the recruitment company with the obligation to pay the contractor.

Members are recommended to be vigilant and to read APSCo guidance on How to spot a recruitment scam 

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 will be holding a virtual roundtable discussion on 27 January 2026 to obtain member feedback to help inform APSCo’s response to the consultation. The consultation is open until 18 February 2026 and you can respond directly on behalf of your organisation via this link.