EOR & Compliance Digest, April 26: International Hiring Compliance Tightens Across UK, New Zealand, Singapore and India
International hiring compliance got more expensive this month. Four major changes hit between April 1 and April 20, and they all land on distributed teams. Recruitment agencies in the UK now share liability for unpaid PAYE. New Zealand’s open work visas split into two tiers. Singapore expanded shared parental leave to 10 weeks. India’s four labour codes are now operational nationwide. If you employ even one person across these countries, here is what changed and what to do this week.
UK Recruitment Agencies Now Share PAYE Liability for Umbrella Companies
What changed in UK PAYE rules
From April 6, 2026, UK recruitment agencies and end clients can be pursued by HMRC for unpaid PAYE income tax and Class 1 National Insurance when an umbrella company in the supply chain fails to pay. (Source: GOV.UK) The umbrella still has the primary duty to operate PAYE. However, joint and several liability now sits with the agency that contracts directly with the end client, or with the end client itself when it deals directly with a non-UK or connected umbrella. (FCSA briefing)
The rules operate on a strict liability basis. As a result, there is no right of appeal, no reasonable-excuse defence, and no exemption for documented due diligence. (IT Contracting)
Why this matters for distributed teams hiring in the UK
If you hire UK contractors through a recruitment agency, your supply-chain risk just increased. Agencies are now financially exposed even when the umbrella, not the agency, mishandled PAYE. Therefore, expect agencies to drop higher-risk umbrellas, push compliance costs into pricing, and demand quarterly proof of PAYE remittance.
HMRC estimates one-off compliance costs of £9.9 million and ongoing annual costs of £21.7 million across the UK supply chain. (GOV.UK impact note) For a 50-person startup with three UK contractors on an umbrella, this likely means a mid-engagement supplier swap. In addition, you may face new contractual indemnities flowing through your agency paperwork.
What to do this week
First, ask your UK payroll provider or EOR for written confirmation that every umbrella in your chain is on an accepted compliance framework. Second, review each contract that uses a UK umbrella and identify whether you, or your agency, sit as the “relevant party” under the new rules. Finally, document every supplier check, because HMRC has signalled that regular, recorded due diligence is the only protective evidence available.
New Zealand Splits Open Work Visas Into Two Tiers
From April 20, 2026, every new open work visa carries one of two employment conditions. (Source: Immigration New Zealand) Post-Study Work Visa holders and partner visa holders can do “any work,” including self-employment and operating a business. In contrast, Working Holiday Visa holders can only work for an employer under an employment agreement or contract for services. They cannot be self-employed and cannot take permanent roles.
This matters in two scenarios. First, if you contract with a New Zealand freelancer, confirm their visa subclass before signing. A WHV holder cannot legally invoice you as a sole trader from April 20. Meanwhile, if you employ someone on an employer-specific work visa, those rules are unchanged. For broader rules, review how to hire in New Zealand before any new engagement.
Singapore Expanded Shared Parental Leave to 10 Weeks
For Singapore Citizen babies born from April 1, 2026, eligible working parents now share 10 weeks of paid Shared Parental Leave (SPL). (Source: Made For Families) The default split is five weeks per parent. However, parents can reallocate the share within the first four weeks of birth via LifeSG. Combined with 16 weeks of Government-Paid Maternity Leave and four weeks of Government-Paid Paternity Leave, total paid parental leave now reaches 30 weeks. (People Matters)
If you employ Singapore Citizens, your HRIS leave codes need updating this week. Otherwise, your payroll will under-credit any new parent of an April 2026 baby. For broader rules, see Singapore employment laws. Specifically, brief your HR ops team if you have a new-parent employee on the Q2 calendar.
India’s Four Labour Codes Are Now Operational
India notified the four labour codes on November 21, 2025, and central operational rules are being finalised through April 2026. (Source: Ministry of Labour FAQ) The Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code now apply nationwide. They replace 29 earlier central laws.
The most disruptive change is the wage definition. Basic pay must equal at least 50% of total CTC for any service from November 21, 2025 onward. As a result, gratuity and Provident Fund contributions rise versus the older variable-heavy structures. For the practical mechanics, audit your India salary structure. Meanwhile, the social security framework now recognises gig and platform workers in statute. However, contribution rates and benefit rules for that scheme are still pending notification.
Quick hits across other regions
- United Kingdom: The National Living Wage rose to £12.71 per hour from April 1, 2026, and payroll systems must apply the new rate from the first pay reference period on or after that date. (Source: GOV.UK)
- Australia: The Fair Work Commission’s first tranche of award changes addressing gender-based pay undervaluation took effect April 1, 2026, lifting minimum rates in several modern awards. (Hillhouse Legal Partners)
International hiring compliance: action items this week
If you hire in the United Kingdom: Document a written check of every umbrella in your supply chain by April 30, even if a recruitment agency sits between you and the worker. In addition, confirm the £12.71 hourly rate is live in payroll for any pay period starting on or after April 1.
If you hire in New Zealand: Before contracting any new freelancer, request the visa subclass in writing. Specifically, WHV holders cannot legally invoice as sole traders from April 20. Confirm the engagement model is either employer-only or under a formal employment agreement.
If you hire in Singapore: Update HRIS leave codes for SPL to 10 weeks for any Singapore Citizen baby born on or after April 1, 2026. Brief HR ops on the four-week LifeSG reallocation window. For more on visa-driven hiring rules, see this Singapore work permit and visa guide.
If you hire in India: Audit salary structures to confirm basic pay is at least 50% of CTC for any service from November 21, 2025 onward. Recalculate gratuity and PF accordingly.
Where Asanify fits in your hiring stack
If these international hiring compliance shifts are forcing yet another payroll re-platform, Asanify’s Global HRMS handles country-specific tax codes, leave rules, and labour-code shifts in one place. Our team monitors regulatory updates across 100+ jurisdictions, so you can adjust without rebuilding your stack each quarter.
FAQ on international hiring compliance
What is the UK umbrella company joint and several liability rule?
From April 6, 2026, HMRC can recover unpaid PAYE income tax and Class 1 National Insurance from a recruitment agency or end client when the umbrella in the supply chain fails to pay. The rule operates on strict liability with no due-diligence defence. Documented supplier checks remain the only practical protective evidence.
Can a New Zealand Working Holiday Visa holder freelance for my company?
No, not from April 20, 2026. WHV holders must work for an employer under an employment agreement or a contract for services. They cannot be self-employed and cannot take permanent roles. Always confirm the visa subclass in writing before signing any New Zealand contract.
Who qualifies for Singapore’s expanded 10-week Shared Parental Leave?
Eligible working parents of Singapore Citizen babies born on or after April 1, 2026. The default split is five weeks per parent. Parents can reallocate the share within the first four weeks of birth via LifeSG and must consume the leave within the first 12 months.
What does India’s 50% basic pay rule mean for distributed teams?
Under the four labour codes operative since November 21, 2025, basic pay must be at least 50% of total CTC. As a result, gratuity and Provident Fund contributions are higher than under the older variable-pay-heavy salary structures common in Indian tech and services.
How can I track international hiring compliance across multiple countries?
Use a global HR platform that maintains country-specific compliance rules and updates payroll logic when laws change. Subscribe to government newsletters in each country you employ in. Run a quarterly compliance review with your EOR partner or local legal counsel.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
