UK recruitment landscape facing a ‘seismic shift’

The UK Recruitment Landscape: Preparing for a Seismic Shift

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The UK recruitment landscape is set for a seismic shift when the new umbrella legislation, stricter HMRC audits, and joint and several liability are introduced in April next year. Kareena Prescott, founder of C2E Law, warns that recruitment companies must prepare for these changes. As a specialist in guiding recruitment businesses through complex legal landscapes, she emphasises the importance of making compliance a strategic priority.

The Upcoming Changes

April 2026 will mark a turning point for the UK recruitment landscape. The new legislation will reshape payroll, compliance, and supply chain accountability for recruitment agencies and end hirers. They will face unprecedented scrutiny and risk.

HMRC has made it clear that it intends to clamp down on PAYE irregularities, VAT fraud, tax avoidance schemes, and mini-umbrella company abuse. This means compliance is no longer just a back-office process. It must become a strategic priority at the heart of agency operations.

Employment Rights Bill: A New Era for Worker Protections

At the same time, the Employment Rights Bill promises to redefine worker protections. Key measures include:

• The introduction of ‘day one’ unfair dismissal rights.

• A ban on zero-hours contracts.

• Guaranteed hours contracts.

• New rules requiring end hirers to pay shift cancellation fees.

  
  

The creation of the Fair Work Agency signals a future where transparency, accountability, and ethical employment practices are non-negotiable. Recruitment businesses must be ready to adapt.

Preparing for the Changes Ahead

It is critical for anyone involved in hiring full or part-time workers—whether recruitment business owners, HR leaders, or compliance professionals—to understand the importance of preparing for the changes ahead of next April. Proactively setting out to understand the workings and impacts of the new legislation will help build business resilience in the face of this regulatory transformation.

Free Event to Dive Deep into the Changes

Kareena is the headline speaker at a must-attend recruitment industry event. This gathering will bring together leaders, experts, and innovators from across the recruitment sector. The aim is to help recruitment business owners, HR, and compliance specialists tackle one of the most urgent challenges facing agencies today. Kareena will be joined by Claire Johnson, IRCA Ethical Lead Auditor and ex-GLAA inspector. They will explore the key focus of the GLAA, the changes on the horizon, and how to tackle current compliance challenges, including fake right-to-work documentation.

The ‘Navigating the New Era of Recruitment Compliance’ event takes place on Thursday, 25 September 2025, in Birmingham. Sponsored by Magic Connect, this is a rare opportunity to gain clarity, share insights, and build resilience in the face of regulatory transformation. It’s also a chance to shape the future of compliant, ethical recruitment.

What the Event Will Cover

The event will cover several crucial topics, including:

• What the legislative changes mean for agencies, end hirers, and their payroll operations.

• How to audit and future-proof compliance processes.

• How evolving end hirers and contractor expectations will shape the sector.

• Practical steps to stay ahead of enforcement, avoid costly penalties, and explore the specific implications for the GLAA-regulated sector.

  
  

Magic Connect primarily supports recruitment agencies and contracting intermediary companies in temporary labour supply chains. They deliver efficient and compliant workforce remuneration solutions with a focus on enhancing the worker experience. Magic Connect also supports traditional employment structures with payroll, wellbeing, and engagement products.

Reserve Your Spot and Find Out More

The Navigating the New Era of Recruitment Compliance event is ideal for recruitment business owners, HR leaders, and compliance professionals. To find out more and book your seat, visit the event information page here: https://www.magic-connect.co.uk/recruitment-compliance-event.

All delegates will receive a complimentary due diligence checklist produced by C2E Law for use with Umbrella / Intermediary suppliers.

Conclusion: Embrace the Change

As we approach April 2026, the recruitment landscape will undergo significant changes. Embracing these changes is not just about compliance; it’s about positioning your business for success in a competitive market. By attending the event and staying informed, you can ensure that your agency is prepared for the future.