Key Takeaways from 2026 Governance & Policy Webinar

Understanding the Employment Rights landscape and what it means for workforce solutions

This week, APSCo OutSource hosted its first event of 2026, a policy briefing, led by our Global Public Policy Director, Tania Bowers.

The session provided attendees with an overview of the political landscape, implementation milestones under the Employment Rights Act, and the evolving enforcement and growth agenda.

Below we summarise three of the key themes discussed.

1. 2026: From Policy Announcements to Practical Implementation

The overarching message was clear: 2026 is a year of delivery.

With the Employment Rights Act now progressing into implementation, attention is shifting from legislative design to operational impact.

Key milestones include:

• Day-one Statutory Sick Pay and removal of the lower earnings limit (from 6 April 2026)
• Day-one rights for paternity, unpaid parental and bereaved partner leave
• Extension of the employment tribunal claim window from three to six months (October 2026)
• Reduction in the qualifying period for unfair dismissal to six months (January 2027)
  

These developments require organisations to review internal processes, workforce models and governance frameworks in advance of enforcement.

Members discussed the importance of early planning and board-level visibility, particularly where complex workforce structures are in place.

An area of focus was the establishment of the Fair Work Agency, launching on 7 April 2026.

The Agency will consolidate several existing enforcement bodies and, over time, assume responsibility for a broader range of employment rights oversight functions. This represents a structural shift in how compliance is monitored and enforced.

DBT have also recently launched a consultation on the Recruitment of Employment Agencies and Employment Businesses Regulations 2003 (Conduct Regulations). Agency worker regulations: This is a wide-ranging consultation which asks how the Conduct Regulations should be adapted to account for the activities of umbrella companies, and what broader changes should be considered to modernise the rules around recruitment.

Alongside strengthened anti-harassment protections and extended tribunal time limits, the creation of a single enforcement body signals a more coordinated regulatory approach.

For workforce solution providers and end clients alike, understanding this evolving framework will be essential to maintaining confidence and compliance.

3. Growth, Skills and Workforce Participation: A Joined-Up Policy Agenda

The session also examined how employment reform sits alongside the Government’s wider growth strategy.

Spending priorities across defence, infrastructure, AI and net zero are positioned as drivers of productivity, supported by workforce-focused initiatives including:

• A Spring 2026 Job Guarantee pilot for young people
• Modular apprenticeships funded via the Growth and Skills Levy
• Reduction in levy fund expiry from 24 to 12 months
• “Keep Britain Working” programmes aimed at reducing long-term sickness
• Timely policy interpretation
• Consultation updates
• Practical guidance
• Direct access to expert support
  

At the same time, the Department for Business and Trade continues consultation on employment status reform for rights purposes.

The alignment between economic strategy, labour market participation and employment regulation reinforces the need for integrated workforce planning.

Supporting Members Through Transition

The period ahead brings significant change across employment rights, enforcement and skills policy.

APSCo OutSource will continue to provide members with:

If you are an APSCo OutSource member and would like to discuss the implications for your organisation, please contact Tania Bowers, who will be happy to help.

If you are not currently a member but would like access to this level of insight and support, Brian Huggett, Managing Director of APSCo OutSource would love to discuss how we can support.

As the entire industry continues to evolve, we remain committed to supporting our members with clarity and confidence through each stage of implementation.