Legal & Compliance: September 2026 Employer Update

Staying on top of employment law changes is vital for any business, especially in the fast-paced shipping and logistics sector around Felixstowe. This month, we look at several key areas that could impact your hiring and operations. Understanding these rules helps you avoid penalties and maintain a fair, compliant workplace.

Right to Work Checks: Digital Updates

The way you conduct Right to Work checks continues to evolve. While you can still accept physical documents, the government's digital identity service providers (IDSPs) offer a convenient online route for British and Irish citizens. Remember, these checks must be thorough and conducted before employment starts. Keep accurate records for each employee, showing the date of the check.

For non-British/Irish citizens, you must use the Home Office online checking service. They will provide a share code for you to verify their status. You cannot accept physical documents for these individuals. Always check the official guidance regularly, as requirements can change.

IR35 and Your Contracted Workforce

IR35 (off-payroll working rules) remains a key area for businesses engaging contractors. The responsibility for determining a contractor's employment status largely rests with the end-client. This applies to medium and large businesses. You must issue a Status Determination Statement (SDS) to the contractor and the next party in the supply chain.

Getting this wrong can lead to significant tax liabilities. Review your contractor agreements and working practices regularly. Ensure they accurately reflect whether the individual is genuinely self-employed. Seek professional advice if you are unsure about any specific contractor's status.

Driver Hours and Pay: What's New?

Driver hours regulations are crucial for safety and compliance in the transport sector. These rules are rigorously enforced. Ensure your drivers and transport managers are fully aware of the latest domestic and EU regulations, including daily and weekly driving limits, breaks, and rest periods. Technology like tachographs helps monitor compliance.

Regarding pay, the National Living Wage (NLW) and National Minimum Wage (NMW) will see their next annual increases in April. However, watch out for any sector-specific or local agreements that might be introduced or updated before then. Your local Felixstowe drivers earn a median advertised salary of £48,750 based on LME’s live roles, so staying competitive and compliant is key.

What to do this month

• Review Right to Work processes: Check if your team is using the latest digital guidance and ensuring all checks are properly documented.
• Audit IR35 engagements: Look at your current contractors. Are your Status Determination Statements accurate and up-to-date?
• Brief transport teams: Reconfirm understanding of driver hours and rest period rules, especially for any new drivers.
• Prepare for upcoming pay changes: Research any potential pay increases or adjustments planned for early 2027 that could affect your budget.
• Check the Felixstowe and Ipswich jobs market: Your local freight forwarding roles have a median advertised salary of £33,500; ensure your pay is competitive.