Recruitment Agency Readiness Tracker - Employment Rights Act 2026
Created by C2E Law for The Recruitment Network and its members, you can find their partner page here.
The Employment Rights Act is bringing a significant programme of change for recruitment agencies and employment businesses, with some measures already in force and further requirements due throughout 2026 and 2027.
To help TRN members understand what they need to consider and prepare for, TRN partner C2E Law has created this Recruitment Agency Readiness Tracker, providing a practical overview of the key changes and their potential impact across your business.
What does the tracker cover?
Rather than looking at the legislation in isolation, the tracker translates the changes into the areas recruitment businesses may need to review, including:
- End-client commercial terms and how liability is allocated
- Agency worker terms and Key Information Documents
- Employment status and identifying which rights apply to which workers
- Umbrella company arrangements and PAYE exposure
- Systems, processes and record keeping
- Pricing and recovery of additional statutory costs
- Internal implementation actions and deadlines
Importantly, it also distinguishes between rights that apply specifically to agency workers and those that only apply where the agency or umbrella company is the individual's employer. This distinction can materially affect responsibilities in areas such as dismissal, redundancy and other employment rights.
Where should agencies focus first?
The tracker identifies several areas requiring particular attention, including:
Umbrella PAYE exposure
Review labour supply chains and ensure agency-client and agency-umbrella agreements reflect the new tax and compliance risks.
Guaranteed hours for agency workers
Start considering how worker hours will be recorded and how hirers will provide the information and cooperation needed to support the forthcoming requirements.
Shift notice and cancellation rights
Ensure bookings, changes and cancellations can be accurately timestamped and consider how statutory costs will be recovered where appropriate.
Harassment responsibilities
Review client-site controls, reporting processes, investigation procedures and cooperation requirements ahead of the October 2026 changes.
Unfair dismissal reforms
Review probation processes, assignment removals, redeployment considerations and the contractual position where a client requests that a worker is removed.
How to use the document
Use the Summary & Priorities tab for an overview of the most immediate areas to consider.
The Readiness Tracker provides the detailed position for each measure, including who it applies to, the likely agency impact, commercial considerations, system changes, financial implications and suggested actions.
The Contract Review Matrix can then be used to identify where end-client terms, worker documentation, umbrella agreements and operational controls may need reviewing.
This should be treated as a working document. A number of the 2027 provisions, particularly guaranteed-hours and shift-related rights for agency workers, still require further secondary legislation and detailed regulations. The tracker is based on the position as at 14 September 2026 and should be reviewed as further guidance is published.
This resource is intended as a practical readiness tool and should not be treated as a substitute for legal advice on individual circumstances.