If you recruit in the UK, you’ll know that employment law never stays still for long. But the proposed Employment Rights Bill (ERB) is shaping up to be more than your usual legal tweak – it’s a shake-up that could have big implications for how recruitment companies operate and advise clients. Whether you’re placing temps, perms, or everything in between, here’s what you need to know (and how to stay ahead of the curve).

The ERB – expected to come into force in late 2026 – is designed to beef up employee protections and close gaps in current legislation. While the political winds could shift between now and then, the direction of travel is clear: more rights, sooner, with more accountability for employers.

Here are five key changes recruitment companies should have on their radar:

1. Unfair dismissal from day one

Forget the current two-year qualifying period – under the ERB, employees will gain the right to claim unfair dismissal from their first day on the job. Why it matters: This fundamentally changes how businesses (and agencies) approach probation periods, performance management, and terminations. For recruiters, it means reviewing contract templates and onboarding materials, helping clients understand the risks of hasty hiring – or firing, and placing a premium on candidates who are the right fit, not just a fast fix.

2. Fire and rehire? Not so fast

The Bill aims to clamp down on ‘fire and rehire’ tactics, making it an automatically unfair dismissal to sack someone just to re-engage them on worse terms. Why it matters: While not directly targeting agencies, this move will affect how you advise clients on contract changes – especially during restructures or downturns. Recruiters should stay informed so you can be a trusted partner, not a silent bystander, and help clients design roles that are legally watertight and commercially attractive.

3. Stronger rights for agency and zero-hours workers

From fairer shift scheduling to better notice periods, the ERB is pushing for parity. That includes contracts reflecting actual hours worked, reasonable notice for shifts, and compensation when shifts are cancelled without warning. Why it matters: This could be a major shift for recruitment businesses operating in sectors like retail, logistics, or hospitality. Start thinking now about updating systems for more accurate scheduling and communications, reviewing worker contracts to ensure they stack up, and managing expectations with both clients and candidates.

4. A bigger spotlight on DEI

The Bill is expected to introduce a new duty on employers to take “all reasonable steps” to prevent workplace harassment – with real consequences for failing to act. Why it matters: Culture counts more than ever. For recruiters, this means championing inclusive hiring practices, partnering with clients who walk the talk on DEI, and reviewing your own internal policies and training.

5. More costly hiring decisions

April’s increase in employer National Insurance contributions (from 13.8% to 15%) and a lower earnings threshold could make clients more cost-conscious. Why it matters: You might start hearing more questions like “Can we afford this role?” or “Is temp-to-perm a safer bet?” Being ready with commercially savvy answers is key.

So, what should you do now?

You don’t need to panic. But you do need a plan. Here’s where we recommend starting:

• Stay informed – make sure someone in your team is tracking legislative updates.
• Review your contracts – especially for agency workers and fixed-term roles.
• Train your team – equip recruiters with the knowledge they need to spot red flags and support clients confidently.
• Start client conversations early – help your partners get ahead of the changes rather than reacting under pressure.

To stay ahead, now’s the time to start reviewing your contracts, brushing up on compliance, and having proactive conversations with clients and candidates alike. The Employment Rights Bill may not be law yet, but being prepared means fewer surprises, smoother transitions, and stronger partnerships when the changes do land.