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Guaranteed Hours, Umbrellas & Risk: What Recruiters Must Prepare For | Theresa Mimnagh of Lawspeed

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About this episode

Nitin speaks with Theresa Mimnagh, partner at specialist recruitment law firm Lawspeed, about significant legal and regulatory changes facing the recruitment industry. The conversation focuses on the proposed Employment Rights Bill and its implications for recruitment businesses, including guaranteed hours for agency workers, joint and several liability with umbrella companies, right-to-work changes, flexible working reforms, and unfair dismissal reforms.

Theresa explains how these changes could reshape recruitment business models and margins, particularly for temp-heavy operations. She discusses why early engagement with government consultations matters more than reactive responses, and how recruiters still have opportunity to influence legislation before finalisation. The episode covers practical risk management, contract requirements, and how agencies can adapt their models—such as moving toward consultancy, RPO, retained search, or hybrid approaches—to navigate the evolving regulatory landscape.

Key takeaways

  • Guaranteed hours and joint liability could impact temp revenue, margins and transfer fees more significantly than previous regulatory changes.
  • Government consultations allow recruiters genuine opportunity to influence legislation outcomes before rules are finalised.
  • Accreditations alone don't fully protect agencies from HMRC risk; fit-for-purpose contracts reflecting modern models are essential.
  • Right-to-work verification changes and flexible working reforms create growing liability across supply chains including RPOs and agencies.
  • Many agencies are shifting toward consultancy, RPO, retained search and hybrid models to reduce regulatory and financial risk.

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