Key Legislative Dates Recruitment Companies Need to Know (Now – June)

The next few months present a critical period for recruitment businesses, with significant employment law changes, consultations, and enforcement developments on the horizon.

From April’s umbrella company reforms to the phased rollout of the Employment Rights Act 2025 changes, recruiters must stay vigilant to protect their operations, workforce models, and client relationships.

Below is a concise guide to the essential dates and developments to watch between now and June.

Umbrella Company Reforms Effective from 6th April

The government’s umbrella company reforms come into force on 6th April, creating joint and several liability within labour supply chains.

What this means for recruiters:

• Recruitment firms may become liable for unpaid PAYE or NICs where non-compliant umbrella arrangements are used.
• Recruitment firms will need stronger due diligence processes for umbrella partners and supply chain compliance.
• Likely increase in client scrutiny of agency supply chains and payroll models.

Key Employment Rights Act Changes for Recruiters from 6^th April  

The Employment Rights Act 2025 is being rolled out in phases across 2026 and 2027. Several changes taking effect on 6^th April 2026 are particularly relevant to recruitment companies.

1. Day-One Family Leave Rights

New day-one rights include:

• Paternity leave
• Unpaid parental leave

Implications:

• Recruiters employing PAYE workers must ensure leave policies align with new day-one rights.

• Increased need for clear workforce planning for temporary assignments.

2. Statutory Sick Pay Reform

Major changes include:

• Removal of the Lower Earnings Limit for SSP eligibility.
• Removal of the waiting period, allowing sick pay to apply from the start of absence.
• More temporary workers will qualify for statutory sick pay.
• Increase in payroll and compliance obligations.
  

Implications:

• More temporary workers will qualify for statutory sick pay.
• Increase in payroll and compliance obligations.

3. Collective Redundancy Changes

• Maximum protective award for collective redundancy doubled.

 Implications: 

• Impacts recruiters operating large workforce deployments or managed service programmes.
  

4. Bereaved Partners’ Paternity Leave

New entitlement allowing bereaved fathers or partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies in the first year.

5. Whistleblowing Reform

• Strengthening of protections where workers report sexual harassment through whistleblowing channels.
  
  

Implications:

• Recruiters should ensure policies and processes are up to date and robust.
• Increased need for clear workforce planning for employees and temporary assignments.

Establishment of the Fair Work Agency – April 2026

• A new labour market enforcement body will be created to oversee compliance across employment rights. 
  

Implications for recruiters will be the greater enforcement focus on:

• labour supply chains
• worker rights compliance
• wage and employment standards.

“Make Work Pay” Consultation – Closes May 1^st

This government consultation is currently live and will shape the future framework of UK labour market regulation.

APSCo Member opportunities to influence future policy:

• APSCo webinar with the Department for Business and Trade (DBT)
• APSCo roundtables to gather member feedback for the formal response.

APSCo’s Legal & Compliance Forum – May 13^th

Book your place and join us for business-critical insights from leading subject matter experts.

Additional Employment Law Changes to Watch (Beyond June)

Although not immediate, the government roadmap confirms further reforms likely to affect the recruitment sector.

Expected later in 2026

• New employer duty to take all reasonable steps to prevent sexual harassment.
• Third‑party harassment liability for employers.
• Expanded trade union access and worker information requirements.
• Unfair dismissal qualifying period reduced to 6 months.
• Reforms to zero-hours contracts, including rights to guaranteed hours and reasonable notice of shifts.
• Bereavement leave rights expansion.
• Stronger protections for pregnant workers and new mothers.

Expected in 2027

• Unfair dismissal qualifying period reduced to 6 months.
• Reforms to zero-hours contracts, including rights to guaranteed hours and reasonable notice of shifts.
• Bereavement leave rights expansion.
• Stronger protections for pregnant workers and new mothers.

What Recruiters Should Do Now

To stay compliant and competitive, recruitment firms should:

1. Strengthen supply chain audits

Particularly around umbrella companies and payroll partners.

2. Update HR and worker documentation

Reflecting new day-one rights, SSP changes, and whistleblowing protections.

3. Enhance workforce planning

Staffing models must anticipate increased leave and sick pay entitlements.

4. Train internal teams

Compliance, finance, and account management teams need clear guidance ahead of April 2026.

5. Engage in the “Make Work Pay” consultation

This is a key moment to influence the future recruitment landscape.