ERB and Umbrella Regulations – what recruiters need to know now

Major reforms are again on the horizon for the UK recruitment industry. The Employment Rights Bill (ERB), introduced on 10th October 2024, and proposed umbrella company regulations are set to reshape employment practices and compliance responsibilities. To help you stay ahead of the curve, we’ve created a useful guide for recruiters, now available to download.

But first, here’s a look at where we are in the timeline of the ERB as it moves through parliament: 

Employment Rights Bill – Roadmap to Reform

10 October 2024: The UK Government introduces the Employment Rights Bill to Parliament.

Q1 2025: The Bill moves into committee stages and undergoes early amendments. Notably, agency workers are confirmed as included in provisions like guaranteed hours.

March 2025: Government publishes formal response to the umbrella company consultation, signalling “Option 3” as the preferred route—placing PAYE responsibility squarely on recruitment agencies.

Spring/Summer 2025: Further amendments expected as the Bill moves through Parliament. Key focus areas: fire-and-rehire practices, zero-hours contracts, and statutory sick pay reforms.

Late 2025 / Early 2026: Anticipated implementation of key ERB provisions and umbrella regulation, pending final approval.

Why this matters for recruiters

From Day 1 SSP to guaranteed hours for agency workers, the creation of a new Fair Work Agency, and much more besides, the Bill introduces significant obligations that recruiters must prepare for now. Add to this the impending umbrella regulation shift, where agencies may become the employer of record for tax purposes, and the stakes are high.

Stay ahead of the changes

At Liquid Friday, we’re actively developing compliant and flexible solutions to help recruitment agencies navigate these changes. But preparation starts with understanding the full picture.

Our free guide,  Employment Rights Bill & Umbrella Regulations – A Guide for Recruiters lays out all the facts, a detailed breakdown of what’s changing, and a practical roadmap to help your business plan ahead.

The future of compliance is coming fast. Let’s get ready together.