Major legislative changes are reshaping the recruitment landscape. From tax adjustments to new employer duties and umbrella company regulations, here’s what you need to know — and what you need to do.
National Insurance Changes (Effective 6 April 2025)
- Employer NICs rising from 13.8% to 15%
- Threshold drop from £9,100 to £5,000/year per employee
- Employment Allowance doubles to £10,500; £100k cap removed
✅ Actions:
- Review and update contracts with clients
- Adjust payroll processes
- Ensure umbrella partners are compliant
- Demonstrate compliance on public sector frameworks
- Minimum Wage & National Living Wage Increases
This topic has been covered in a separate update on our website, but it’s important to note that it remains a key cost consideration for all employers.
- New Employer Duty – Preventing Workplace Sexual Harassment (From 26 October 2024)
- Legal obligation to take “reasonable steps” to prevent harassment
- Applies to all workers, including temps and contractors
✅ Actions:
- Update and communicate sexual harassment policies
- Strengthen HR processes
- Review compliance under the Equality Act 2010
- Umbrella Company Compliance (From April 2026)
- Agencies will be legally responsible for PAYE and NICs for umbrella workers
- Recent legal action highlights the risks of weak due diligence
✅ Actions:
- Ensure umbrella-specific contracts are in place
- Understand your legal responsibilities as an intermediary
- Regularly review compliance and keep up with guidance
- Employment Rights Bill – Sweeping Reforms Coming
Key proposed changes include:
- Guaranteed hours for zero-hour workers
- Mandatory shift change notice
- Unfair dismissal protection post-probation
- Ban on substitution clauses
- Day 1 Statutory Sick Pay (SSP)
- Limits on confidentiality clauses
- Umbrella companies to be regulated
✅ Actions:
- Get involved through industry bodies (e.g., REC)
- Ensure access to legal expertise
- Start preparing now — changes begin rolling out from 2026
