Shropshire Chamber of Commerce has hosted a webinar to help businesses prepare for employment law changes which come into effect next month.

Delivered in partnership with workforce specialists RedWizard and Freeflexer, the session provided clarity on what the new ‘Umbrella Reforms’ mean for organisations using contractors, temporary workers, or labour supply chains.

The webinar was led by Jools Barrow‑Read of RedWizard and Jack Spencer of Freeflexer, who guided attendees through the key elements of the reform and the practical steps businesses should begin taking now.

Kelly Riedel, the Chamber’s head of member success, said: “Many businesses use contractors, temporary workers or agency staff, which means they may have ‘umbrella’ companies as part of their supply chain.

“With joint and several liability set to become a central feature of the new rules, we felt this session was important to emphasise the importance of visibility, verification, and proportionate governance across everyone’s supply chains.

“The session explained how umbrella companies typically operate, where risk commonly sits within organisations, and how to identify whether the reforms apply to a company’s current workforce model.”

Umbrella companies employ agency workers and handle their pay, deducting tax and National Insurance through PAYE. UK law requires them to provide full employment rights, accurate payslips, and transparent pay calculations.

From April this year, new rules will regulate umbrella companies under the Employment Rights Act, bringing them within the scope of the Fair Work Agency.

The new joint and several liability rules will mean recruitment agencies or end‑clients may become liable for unpaid tax if an umbrella company is non‑compliant. These reforms aim to reduce tax avoidance, protect workers, and increase accountability.

Attendees on the webinar received guidance on what ‘good’ looks like in terms of compliance and oversight, along with advice on assessing their current position and planning next steps ahead of the 2026 deadline.

A Q&A session rounded off the event, giving members the opportunity to raise specific concerns and explore real‑world scenarios.

RedWizard has kindly made the full recording available, and Shropshire Chamber is uploading it to its website so that all members can access the insights shared.