Welcome to the Autumn 2025 edition of Recruitment Watch, where we explore the legal and regulatory developments shaping the recruitment services sector.
This edition opens with a look at the government’s revised approach to staffing companies’ tax responsibilities when engaging workers via umbrella companies. We explain how joint and several liability for PAYE and NICs will affect recruitment businesses from April 2026, and what steps agencies should take to manage risk.
We highlight the risks for recruitment firms when share plan communications to leavers go wrong, focusing on estoppel claims and the potential for unexpected liabilities. Non-compete clauses are also back in the spotlight, and we consider the implications of recent developments for talent movement and contractual restrictions in the sector.
We provide an update on Companies House reforms, with the timing of compulsory identity verification now confirmed, and discuss what this means for compliance and due diligence in recruitment.
Turning to employment legislation, we review the House of Lords’ latest amendments to the Employment Rights Bill, analysing the potential impact on staffing companies as the Bill nears its final stages.
Finally, we examine major financial reporting changes set to reshape the recruitment sector, outlining the key compliance challenges and opportunities for businesses.
As always, our aim is to keep you informed and prepared for the evolving legal landscape in recruitment.