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New Employment Legislation this April

  • New Employment Legislation this April

    Starting from today and going into next week there are a number of changes to Employment legislation that may affect our workers and end clients should be aware of.

    We thought we’d break down the two main ones for you:

    Statutory Sick Pay

    From the 6th April 2026, UK Statutory Sick Pay (SSP) becomes a ‘DAY ONE’ righ, removing the current 3 day waiting period. Available regardless of earnings it will be calculated as the lower of 80% of your average weekly earnings or at the standard flat rate of £123.25 per week (£24.65 per day).

    What this means for our workers paye or umbrella is they will need to ensure they follow absence reporting procedures (Notify agency by phone, not text between 7am and 8am and also their placement school/college/nursery) and for payment submit a self certification for under 7 days and doctors note for over 7 days to be included in payroll. NB This is a statutory requirement for SSP Payments.

    https://www.tax.service.gov.uk/fill-online/statutory-sick-pay-employer-notification/what-is-your-name

    LT Support already monitor sickness and moving forward will arrange review meetings to discuss support for more then two instances in a 6 week period.

    JSL

    Also from the 6th April 2026, new rules are coming in to force across the recruitment agency sector. The aim is to ensure full compliance with UK tax law due to breaches from both agencies and umbrella companies with non-compliant pay models, disguised remuneration schemes and incorrect NI and PAYE which can lead to workers unknowingly being exposed to tax risk. Agencies must ensure we do what we can to prevent tax avoidance adn ensure correct payments are made.

    LT Support has been at the forefront of due diligence with our payroll since Day One and in 2024 we cemented this by becoming an FCSA partner: The Freelancer and Contractor Services Association who hold all umbrella company members to the highest standards of compliance, transparency and reliability. Their codes of compliance assesses both tax and employment law and uses independent assessors to add assurance.

    As an FCSA recruitment partner we only work with FCSA Umbrella companies and right now work with two:

    • Clipper Consulting Group
    • Workwell Solutions

    Not only do both companies adhere to FCSA and provide us with required due dilligence and great admin fees of just £13.50 per week, they are also both SafeRec accredited, ensuring monthly reports on tax payments and also payslip audits.

    By using only FCSA and SafeRec providers, LT Support are ensuring that our workers are:

    • Paid the correct amount, on time each Friday
    • Are with a fully tax compliant umbrella company
    • Payslips are fully transparent so you can understand any deductions
    • That you are protected from any future HMRC investigations

    Responsibility for ensuring payments are made to HMRC are those of the recruitment agency moving forward, this means if the umbrella company doesn’t pay, we will have to. For our End Clients this due diligence is so strong as the buck does not stop with the agencies. For direct PAYE workers, the agency is effectivly the umbrella company in this scenario. This means if your recruitment agency is not fulfilling the tax compliance and payments the responsibility could fall to you to make payments. Our robust payroll systems managed by Quba Solutions ensures that this will never happen with LT Support, but for internally managed payroll please check.

    Please reach out with any questions: info@LT-Support.co.uk