For many employers, right to work checks are a familiar part of the recruitment process. Before a new employee starts work, employers must verify that the individual has the appropriate immigration status to work in the UK. Done correctly, these checks provide employers with a statutory excuse against civil penalties if it later emerges that an individual did not have the right to work.
However, a significant expansion of the UK’s right to work regime is due to take effect on 1st October 2026. The changes will bring a much wider range of working arrangements within scope, meaning that organisations that have traditionally viewed right to work compliance as purely an HR issue may need to rethink their approach.
Businesses that engage contractors, subcontractors, temporary labour, gig workers or outsourced service providers should pay particular attention to the change.
What is the right to work scheme?
The UK’s right to work scheme requires employers to verify that anyone they employ is legally entitled to undertake the work in question. It is intended to prevent illegal working, protect compliant businesses from unfair competition and support the UK’s wider immigration system.
Employers can establish a statutory excuse against civil penalties by carrying out prescribed right to work checks before employment begins. Depending on an individual’s circumstances, this may involve:
- An online right to work check using the Home Office online service.
- A manual check of specified original documents.
- Use of an Identity Service Provider (IDSP) for eligible British and Irish citizens.
Failure to carry out checks correctly can result in substantial penalties. Employers may also face reputational damage, difficulties maintaining a sponsor licence and increased scrutiny from immigration enforcement authorities.
What changes on 1st October 2026?
The key development is that the government’s reforms will substantially widen the scope of the right to work regime. The changes arise from section 48 of the Border Security, Asylum and Immigration Act 2025, which expands the definition of arrangements covered by the illegal working regime.
While historically, employers have generally been responsible for right to work compliance in relation to employees working under contracts of employment, from 1st October 2026, the regime will extend beyond conventional employment relationships and capture a broader range of labour arrangements. According to draft Home Office guidance and accompanying codes of practice, the expanded scope is expected to include individuals engaged:
- Under a worker’s contract.
- As individual subcontractors.
- Through certain online matching platforms.
- Through some labour supply chain arrangements.
The government has made clear that the focus is on how work is actually delivered in practice, rather than simply the label given to a contractual arrangement.
This reflects the reality of the modern labour market, where many organisations rely on outsourced labour, contractors, flexible workers and platform-based arrangements rather than just traditional employees.
Relevance for employers
Many organisations have historically assumed that right to work obligations sit exclusively with the direct employer. Under the new framework, organisations may find themselves exposed to immigration compliance risks even where they do not regard themselves as employers in the traditional sense. This means compliance responsibilities may extend beyond HR teams and businesses may need input from:
- Procurement teams.
- Contract management functions.
- Operations departments.
- Recruitment teams.
- Legal and compliance professionals.
- Senior managers responsible for outsourcing or labour supply arrangements.
In practical terms, organisations that engage labour through complex supply chains may need to understand precisely who is performing work on their behalf and who is responsible for conducting the required immigration checks.
Understanding “extended liability”
One of the most significant aspects of the reforms is the concept often referred to as extended liability. While the direct engager or employer remains the primary focus for enforcement, liability may potentially move through a contractual chain where organisations cannot demonstrate that appropriate checks have been undertaken.
This creates an additional compliance risk where businesses use subcontracting and outsourced labour arrangements. For example, where one organisation contracts with another to provide workers or services, questions may arise about which party has responsibility for carrying out right to work checks and whether those checks have been completed correctly.
Businesses that have never previously considered themselves responsible for right to work compliance may therefore need to assess their exposure.
Which employers are most likely to be affected?
Potentially, these reforms are relevant to any organisation that relies on non-traditional labour models. Businesses that should pay particular attention include:
- Construction and engineering: labour supply chains, subcontracting arrangements and project-based work are common throughout the sector.
- Logistics and distribution: many operators rely on agency staff, subcontracted drivers and outsourced labour providers.
- Manufacturing: temporary labour arrangements and labour supply contracts may create additional compliance considerations.
- Hospitality and retail: flexible staffing models can increase the complexity of workforce compliance.
- Care providers: many providers utilise agency workers and outsourced staffing arrangements.
- Technology and platform businesses: online matching services and digital platforms are specifically referenced within the expanded framework.
Even organisations that primarily employ permanent staff should look at whether any contractors, consultants or subcontractors are engaged elsewhere within the business.
Is everything changing?
While the scope of the regime is expanding, the core method of conducting right to work checks remains broadly familiar. The Home Office’s established checking routes continue to apply and therefore employers will still need to:
- Conduct checks before work begins.
- Verify identity and immigration status.
- Retain appropriate evidence.
- Follow prescribed Home Office processes.
The principle behind the statutory excuse has not changed. Organisations that conduct compliant right to work checks in accordance with Home Office guidance can continue to rely on this protection if it is discovered later that an individual does not to have permission to work.
Practical steps
As the changes come into effect on 1st October 2026, employers should begin preparing now if they have not done so already.
1. Map your workforce arrangements
Many organisations have a clear understanding of their employees but a less detailed view of their wider labour supply arrangements. Therefore, they will need to create an inventory of:
- Employees.
- Agency workers.
- Contractors.
- Individual subcontractors.
- Consultants.
- Outsourced service providers.
- Platform-based workers.
Understanding where people are engaged across the organisation is the first step towards compliance.
2. Review contractual arrangements
Businesses should look at their contracts governing labour supply arrangements. Key questions they need to ask include:
- Who is responsible for carrying out right to work checks?
- Is responsibility clearly documented?
- Does the agreement permit auditing or verification?
- What indemnities exist if compliance failures occur?
Contracts drafted under the old framework may require updating.
3. Conduct supply chain due diligence
Where labour is supplied through third parties, organisations should consider seeking assurance that right to work processes are robust. This may include:
- Compliance questionnaires.
- Audit rights.
- Evidence requests.
- Supplier monitoring procedures.
4. Update policies and procedures
Many right to work policies focus solely on recruitment. Following the reforms, organisations may need procedures that address contractor engagement, subcontracting and outsourced labour arrangements.
5. Train stakeholders beyond HR
The expanded regime means compliance should not be viewed purely as an HR responsibility. Procurement professionals, contract managers and operational leaders may all need training on what is required of them under the new laws.
6. Review onboarding processes
Employers should ensure that checks are carried out before work begins and that responsibility for completing them is clearly assigned. Consistency is critical.
7. Prepare for Home Office guidance updates
The Home Office has already published draft guidance and codes of practice (see above), but further updates may follow before implementation. Organisations should continue monitoring developments and ensure policies remain aligned with the final published requirements.