At Giant Group, we’ve seen a sharp increase in enquiries from businesses reviewing how they engage contractors - particularly those on fixed-term contracts. This trend isn’t surprising. The upcoming Employment Rights Bill is set to introduce the biggest shift in UK employment law for a generation, and with it comes renewed complexity for employers managing flexible workforces.
A New Era of Worker Protections
The Bill - now in its final stages of parliamentary debate - aims to make work fairer, safer, and more transparent. It introduces new obligations for employers around predictable hours, holiday pay, day-one rights, and protections against “fire and rehire”. A new Fair Work Agency will also be created to enforce pay and record-keeping standards.
For many organisations, this means tighter oversight of how contractors and temporary workers are engaged - especially those currently paid through fixed-term contracts or in-house payrolls.
From IR35 to the Employment Rights Bill – The Next Wave of Change
When IR35 reforms were rolled out to the private sector in 2021, many organisations were forced to rethink their contractor engagement models. Responsibility for determining employment status shifted to the end client, and many hirers felt the simplest solution was to engage contractors as employees on fixed-term contracts (FTCs). That approach removed the tax risk but brought employment risk instead.
Now, the Employment Rights Bill is expected to extend employment protections further - meaning more contracts and processes could fall within its scope. These reforms will likely apply to many fixed-term and temporary arrangements, meaning organisations engaging contractors directly could face additional administrative and legal exposure.
Why Outsourcing Is Back on the Agenda
For many businesses, this growing compliance load is neither their area of expertise nor a productive use of internal resources. Outsourcing contractor engagement and payroll to a specialist provider offers a strategic way to:
- Reduce risk – ensuring contractors are paid correctly, taxes are managed compliantly, and changing employment law is adhered to.
- Simplify operations – removing the need to run multiple payrolls or track complex worker rights internally.
- Enhance worker experience – providing contractors with consistent support, accurate pay, and clear communication about rights and benefits such as pension and medical care.
- Maintain workforce flexibility – allowing firms to continue using contingent labour without the administrative and reputational risks of misclassification or non-compliance.
What We’re Seeing at Giant Group
Since the Employment Rights Bill was announced, we’ve seen a noticeable increase in firms seeking to outsource fixed-term and project-based contractor populations. Many of these organisations previously managed contractors in-house but are now looking for a more robust, compliant, and scalable model ahead of legislative change.
Our clients tell us they value:
- Confidence that all employment-law obligations are met.
- The ability to consolidate PAYE, umbrella, and limited-company contractor populations under one managed solution.
- Greater transparency and control through technology-driven reporting and compliance oversight.
A Proactive Approach to Compliance
The businesses that will navigate these reforms most successfully are those acting early - reviewing their contingent-workforce strategy now rather than waiting for legislation to take effect. Partnering with a trusted, compliant provider helps ensure readiness while freeing internal teams to focus on core operations.
At Giant Group, we’ve been supporting organisations through every stage of workforce reform - from IR35 to the forthcoming Employment Rights Bill - providing technology, expertise, and governance that make contractor engagement simple, compliant, and future-proof.
If you’d like to understand how outsourcing contractor employment could support your organisation ahead of the Employment Rights Bill, contact us at Giant Group.