Umbrella company non-compliance — 9 practical tips for recruiters & employers

We outline what’s changing in April 2026 (and beyond) and provide some practical steps that recruiters using umbrella companies need to take.
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AuthorsLachlan NisbetAlexander Walton
4 min read
Employment, Regulatory & Professional Conduct, Health & Safety, Retail

During the festive period, retailers and businesses across all sectors will hire gig economy, agency and temporary workers to help with the Christmas rush. For employers, this comes with a need to understand your legal duties and responsibilities to ensure a safe working environment.
Here, Partner and Head of Regulatory & Professional Conduct Lachlan Nisbet and Paralegal Alex Walton outline employer obligations under the Health and Safety at Work etc. Act 1974 (HSWA 1974), including the six key steps you should take to protect workers.
Businesses often hire new staff to provide extra resource during the busy festive season. This year, Amazon is hiring more than 15,000 additional staff in seasonal jobs across the UK, with the likes of Aldi, Argos and Morrisons also looking to make thousands of hires.
When businesses welcome a huge influx of new workers in this way, the risk of accidents occurring increases — typically due to their unfamiliarity with the job and working environment, especially at such a demanding time of year.
Under Sections 2 and 3 of HSWA 1974, an employer must ensure that employees and persons not in their employment aren’t exposed to risks that impact their health or safety (so far as reasonably practicable). It doesn’t matter how long that employee has worked at the business — from day one, their health, safety and wellbeing will always be protected by the law.
The Health and Safety Executive (HSE) has set out guidance for companies that hire new workers. This highlights the importance of ensuring that new workers are properly trained and equipped at the outset. The risk of an accident occurring is as great in the first six months at work as during the rest of a worker’s working life.
From this guidance, there are six key steps to remember.
It’s important to remember that a breach of health and safety law arises when there’s an inadequately controlled risk of harm — even if no actual harm has occurred.
Failure to comply with your health and safety obligations may result in the HSE prosecuting your company.
On 25 April 2024, Loadhog Limited pleaded guilty to breaching Regulation 11 of the Provision and Use of Work Equipment Regulations 1998 and Regulation 3 of the Management of Health and Safety at Work Regulations 1999.
The company was fined £100,000 and ordered to pay £3,139.75 in costs.
The prosecution arose after an agency worker injured their fingers when using a table saw without a guard at the company’s site in Sheffield. The HSE inspector said that the “incident could so easily have been avoided by simply implementing the correct control measures and safe working practices”.
Businesses must ensure that the health, safety and wellbeing of their employees — including gig, agency or temporary workers — are protected at all times.
If your business requires additional support from agency or temporary workers during the busy festive period, we recommend that you consult the HSE’s guidance and ensure that your policies and procedures are compliant.
If you need any help in reviewing your health and safety arrangements, our expert health and safety law team can help.
Talk to us by giving us a call, sending us an email or completing our contact form below.

Lachlan Nisbet
Lachlan is a Partner in our regulatory and professional conduct team and leads our Brabners Protect team. He is acknowledged as the UK’s leading firearms and field sport lawyer.
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