Everything Transport Businesses Need to Know About Using Agencies

What the April 2026 Wage & Employment Law Changes Mean for Transport Businesses April 2026 marks one of the most significant shifts in UK employment law in years and for transport and logistics businesses, the impact will be immediate. With increases to the National Living Wage (NLW) and the first major changes under the Employment Rights Act 2025 , employers relying on HGV drivers need to be prepared. In this guide, we break down: What’s changing in April 2026 The cost implications for transport businesses How hiring strategies are shifting What you should be doing now National Living Wage Increase: Rising Driver Expectations The April 2026 NLW increase is raising the baseline across the workforce. While many HGV drivers already earn above NLW, this still has a major impact: Entry-level roles become more competitive Pay expectations increase across all driver categories Pressure builds to maintain pay differentials between roles 👉🏼The result: Drivers expect higher pay, and they have more choice. Employment Rights Act 2025: Key Changes in April 2026 The Employment Rights Act 2025 , described as the biggest overhaul of employment law in decades, is being introduced in phases — with several key changes taking effect from April 2026. 1. Day-One Statutory Sick Pay (SSP) SSP will be available from the first day of illness The lower earnings threshold is being removed More workers (including lower-paid and flexible workers) will qualify 👉🏼 Impact: Increased payroll costs and reduced flexibility around absence management. 2. Day-One Family Rights Employees will gain: Immediate eligibility for paternity leave Day-one access to unpaid parental leave 👉🏼 Impact: Greater workforce flexibility will be needed to cover a potential increase in absences. 3. Bereaved Partners’ Paternity Leave A new entitlement will allow bereaved fathers or partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year. 👉🏼 Impact: Employers must be prepared for longer periods of leave in rare but critical circumstances — requiring compassionate policies and contingency planning. 4. Strengthened Whistleblowing Protections Protections are being strengthened for workers who report wrongdoing — including those who raise concerns about sexual harassment in the workplace. 👉🏼Impact: Transport businesses must ensure: Clear reporting processes Proper investigation procedures A culture that supports speaking up Failure to do so increases legal and reputational risk. 5. Stronger Enforcement & Fair Work Agency A new Fair Work Agency will be introduced with enhanced powers to: Enforce pay compliance Recover underpayments Take action on behalf of workers 👉🏼 Impact: Increased compliance risk for businesses not aligned with regulations. 6. Increased Penalties for Non-Compliance Collective redundancy penalties are doubling (up to 180 days’ pay per employee) 👉🏼 Impact: Higher financial exposure if processes are not followed correctly. 7. Joint & Several Liability (Critical for Agency Use) One of the most important changes for the transport sector is the introduction of joint and several liability . This means that: 👉🏼Businesses can be held legally responsible for unpaid wages or non-compliance within their supply chain — including agencies and umbrella companies. In practice: If a worker is underpaid, liability may extend beyond the direct employer End clients may be accountable for failures in the labour supply chain 👉🏼Impact on transport businesses: Increased risk when using third-party labour providers Greater need for due diligence on agencies and payroll providers Pressure to work with compliant, transparent partners This is a major shift — and one that will directly affect how businesses engage agency drivers. The Real Cost Implications for Transport Businesses The cost of these changes goes far beyond wage increases. Transport operators now face: Higher base wage expectations Increased sick pay and leave costs Greater compliance and administrative burden Increased legal and financial risk And most importantly: 👉🏼 The cost of getting recruitment wrong is increasing. Unfilled roles now have a bigger operational and financial impact than ever before. Agency vs Permanent: How Hiring Strategies Are Changing We’re already seeing a shift across the transport sector. Increased Use of Temporary Drivers Greater flexibility to manage absence and demand Faster response to changing workloads Growth in Temp-to-Perm Models Reduce hiring risk Test suitability before long-term commitment The Risk of Doing Nothing The biggest mistake transport businesses can make right now is waiting. Common issues we’re already seeing: Pay rates falling behind the market Slow hiring processes losing candidates Poor compliance awareness In a market where drivers have more choice, this leads to: ❌ Unfilled roles ❌ Increased costs ❌ Operational disruption How to Prepare for April 2026 Changes To stay competitive and compliant, transport businesses should: ✔ Benchmark and review pay rates ✔ Audit agency and payroll partners (critical for joint liability) ✔ Update policies for sick pay, leave, and whistleblowing ✔ Improve recruitment speed and processes ✔ Consider flexible workforce models (temp / temp-to-perm) Most importantly: 👉🏼 Take a proactive approach — not reactive. Final Thoughts The April 2026 changes are more than just a legal update. They represent a fundamental shift in the driver recruitment market. Costs are increasing Compliance expectations are increasing Risk is extending beyond direct employment The businesses that adapt early will: ✔ Reduce risk ✔ Secure better drivers ✔ Maintain operational stability Those that don’t will feel the impact quickly. 📞 Need Help Navigating the Changes? If you want to understand how these changes affect your driver recruitment strategy — and how to stay competitive while remaining compliant — our team is here to help.