In this blog we explore what the Bill means for Umbrella Company employees, and how SG Umbrella can help you. 

The Employment Rights Bill 

The bill essentially is a proposed piece of UK legislation that’s aimed at modernising and strengthening workers’ rights, with a particular focus on protecting those with non-traditional working arrangements, such as Umbrella employees, gig economy workers, and zero-hour contract staff. 

It’s designed to: 

Crack down on unfair working practices – especially those which can sometimes be found in agency and Umbrella Company setups 

Provide workers with greater transparency and job security – particularly around pay, holiday and contractual terms 

Potentially shift responsibility – for things such as PAYE tax from the Umbrella Company to the recruitment agency or end client, which will help reduce tax avoidance and those operating illegally. Please note that this has not yet been confirmed 

Create The Fair Work Agency –(FWA) a new regulator – which has been designed to oversee employment practices, and help to resolve any disputes 

Expand rights – around flexible working, parental leave, redundancy protection, and fair treatment whilst at work 

The key implications for Umbrella Company Employees 

*The regulation of Umbrella Companies 

• Umbrella Companies will be formally regulated and defined as employment businesses 

• They will fall under the oversight of the Employment Agency Standards Inspectorate, and transition to the Fair Work Agency (FWA) once it has been established 

*Shift in PAYE responsibility 

• From April 2026 the shift in obligation to account for National Insurance Contributions (NICs) and PAYE will transfer from Umbrella Companies to the recruitment agencies. If no agency is involved then the responsibility will shift to the end client 

*Please note that both the regulation of Umbrella Companies and the shift in PAYE responsibility are not yet confirmed, and may still change.  

Enhanced worker protections

• Flexible working – employees are now able to request flexible working arrangements from day one of their employment 

• Parental rights – will be extended for maternity, paternity, and bereavement leave, including protections for loss in pregnancy 

• Redundancy protections – there will be stronger safeguarding around unfair dismissal, especially for new parents 

Improved Disputed Resolution

• The FWA will have the authority to initiate proceedings on the behalf of the worker, which in turn will streamline the resolution of employment disputes 

Transparency in contract terms

• Umbrella Companies must now provide clear information relating to pay, holiday entitlements, and job roles from the outset of employment 

These reforms have been designed to provide Umbrella Company employees with rights and protections which are in-line with those already received by people in traditional employment roles, and will address any previous concerns regarding the concerns around exploitation and lack of clarity within the sector. 

When will the Employment Rights Bill come into force? 

At present the Employment Rights Bill is undergoing consultations in order to refine the bill’s provisions, and many of the reforms will take effect in 2026.  

How SG Umbrella can help 

Here at SG, we stay on top of the latest legislation to understand how upcoming changes will impact both our business and you as our employee. If you have any questions about the Employment Rights Bill and what it could mean for you, don’t hesitate to reach out — we’re here to walk you through it in more detail. Simply get in touch with one of our team, who will be happy to walk you through the impending changes. 

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So what does this mean for our employees, what value does payslip auditing hold and why should you be concerned about your payslip’s compliance? In our blog we explore all this and more.

What is Payslip Buddy?

Payslip Buddy is a contractor focused solution designed to protect Umbrella employees from unlawful and / or ethical practices from Umbrella Companies. By auditing payslips, employees and agencies can check their Umbrella Company’s compliance.

Revolutionary within the payroll sector, Payslip Buddy audits the payslips we generate for our employees in real time, direct from our payroll software and cross-references with RTIs sent to HMRC. A report of our audit is then sent to our partnering agencies and our employees, meaning that you’ll receive an audit report each and every time we pay you.

Why is it important within the Umbrella Company industry?

Sadly for the Umbrella industry it isn’t a prerequisite for every Umbrella Company to have their payslips audited, so here at SG we’re proud to say that we have voluntarily signed up to have every single one of our employee’s payslips checked. If compliancy is followed and there’s complete transparency in the payment process, then there’s no reason why every Umbrella Company shouldn’t be Payslip accredited. That is if they don’t have anything to hide!

How does Payslip Buddy work?

As an SG Umbrella employee, you’ll have already received emails from Payslip Buddy, but if you’re thinking of joining us, you’ll be sent two emails from Payslip Buddy when you receive your first payslip:

• The first email will be onboarding email, which will ask you to activate your Payslip Buddy account. You’ll only receive his email once
• The second email will be an audit report for your first SG Umbrella payslip. You’ll then receive an audit report every month, which will be stored and recorded on your Payslip Buddy dashboard. With every audit stored in one, central place, you’ll be able to quickly and easily refer to them whenever you need to track your income, taxes and pension contributions

As a SG Umbrella employee there’s no obligation to signup to Payslip Buddy, but we believe for peace of mind and security it’s worth its weight in gold. Along with our Freelancer and Contractor Services Association (FCSA) accreditation our dedication to compliance and transparency in the way we operate, demonstrates to the whole contracting industry that we’re serious about our conformity.

Got questions about Payslip Buddy?

Take a look at our dedicated Payslip Buddy page, for more information.

Alternatively, speak to the SG Umbrella team today. They’ll happily talk you through the benefits of Payslip Buddy, how it works and how you’re able to opt-out should you wish.

The SG Umbrella team are always on hand to offer you support and guidance, ensuring your experience with us is nothing but exceptional. Get in touch today to find out more and speak to the team.

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