​Employers are already starting to adjust how they hire, engage contractors, and manage risk in response to the Employment Rights Act (ERA).

At Auxo’s recent event, Future-Proofing Your Workforce and Understanding the Employment Rights Act, the focus was on what those changes look like across workforce planning, supply chains, and hiring models.

The session brought together perspectives from LinkedIn on skills-based hiring, The Access Group on AI in the workplace, and employment law specialists on how the ERA will reshape employer responsibilities over the next 12 to 18 months.

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Watch the highlights reel for a quick recap of the event.

What are employers most concerned about under the Employment Rights Act?

The ERA introduces changes across sick pay, leave, whistleblowing protections, enforcement, and umbrella regulation, alongside the introduction of the Fair Work Agency.

Taken together, these changes affect how businesses structure and manage their workforce.

Employers want clarity on:

• Where risk now sits across their workforce and supplier network

• How hiring models may need to change

• What needs reviewing before April 2026

• How much visibility they need across contractor arrangements

APSCo (Association of Professional Staffing Companies) and their perspective?

Umbrella reform and supply chain accountability were a key focus of the discussion, with Shazia Imtiaz sharing her perspective on how responsibility is shifting across the labour supply chain.

Shazia is General Counsel at APSCo and a UK-qualified lawyer with over 15 years’ experience advising on compliance, employment law, and complex commercial arrangements both domestic and international. Her work spans both private practice and in-house roles, supporting global organisations on regulatory risk, governance, and workforce structures.

Key takeaways for employers

Shazia’s input focused on how umbrella reform is changing responsibility across the supply chain, and what employers need to tighten as a result.

• Joint and several liability increases risk within the supply chain
  Non-compliant umbrella arrangements can create exposure across the supply chain, including for recruitment businesses and end clients.
  

• Due diligence and governance requirements are increasing
  Employers need stronger oversight of umbrella companies and the wider labour supply chain.
  

• Responsibility sits across multiple parties
  Recruitment businesses and end clients are expected to take greater responsibility for ensuring a compliant supply chain.
  

• Transparency requirements are becoming more important
  There is increased focus on visibility around pay, deductions, and employment rights for workers.
  

• Supply models are starting to change
  Some businesses are moving towards direct PAYE engagement models, working with fewer umbrella providers, and prioritising audited and accredited suppliers.
  

• Contractual controls are tightening
  Clearer agreements between recruiters, umbrella companies, and end clients are being used to manage compliance risk.
  

• Ongoing compliance monitoring is required
  This includes regular supply chain audits, supplier risk rating, and requesting detailed due diligence information such as payroll records and HMRC registration.
  

• Issues need to be addressed quickly
  Where problems arise, such as failure to pay workers correctly, prompt investigation and resolution is required.

What this means for workforce planning

These changes go beyond compliance and affect how businesses structure and manage their workforce.They influence how businesses engage contractors, structure supplier relationships, and manage cost, flexibility, and risk.

Workforce planning now needs to account for both access to talent and how that talent is engaged and managed across the supply chain.

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What should employers do next?

If you are reviewing your contractor strategy or supply chain, now is the time to get clear on where risk sits and how it is managed.

Auxo works with businesses to assess workforce structures, supplier models, and compliance risk, helping turn these changes into practical decisions.

If you want to sense-check your current approach or understand what others in your market are doing, get in touch.

You can also follow Auxo on LinkedIn and join one of our upcoming events.