The UK’s right to work regime is undergoing a significant expansion from 1 October 2026, extending compliance obligations beyond traditional employment relationships to capture a wider range of labour and service arrangements.
Employers that engage contractors, subcontractors, outsourced workers or contingent labour should review their arrangements now to ensure they remain compliant when the new rules take effect.
What is a right to work check?
A right to work check is performed on potential employees before they start their employment, to ensure that they have the correct immigration status to undertake work in the UK.
Employers do not have to perform this check, but if they fail to do so, or undertake a partial check, they can receive a civil penalty of up to £60,000 per illegal worker, lose their ability to sponsor international workers and be ‘named and shamed’ on a publishable register.
If organisations undertake a compliant right to work check, they will have a ‘statuary excuse’ and a defence if any illegal workers are subsequently discovered.
What Is Changing?
The right to work system used to apply to just employees of an organisation.
The changes being introduced through the Border Security, Asylum and Immigration Act 2025 widens the definition of ‘employment’ for right to work purposes, and broadens who may be responsible for right to work compliance.
From 01 October 2026, the right to work scope will extend to those working or providing a service:
- under a contract of employment (a contract of service or apprenticeship);
- under a worker’s contract;
- as an individual sub-contractor; or
- as a service provider to potential clients or customers, where the organisation is operating as an online matching service providing the details of the individual.
As a result of broadening out this definition, the liability of right to work has been extended and is now complex. Liability may be extended where:
- a person is under a contract to provide work or services to a third party and enters into a contract with another employer who employs worker(s) to carry out all or part of the work or services required to fulfil that contract;
- an online matching service matches a service provider with a client or customer to provide work or services, and the service provider enters into a contract with the client or customer;
- an employer employs an individual to provide work or services, and the contract permits that individual to substitute their work or services to be carried out by another individual in their place.
As a result, right to work compliance will no longer be solely an HR responsibility. Procurement teams, contract managers, operational leaders and those responsible for outsourcing arrangements may also need to play a role in managing compliance risks.
Which Businesses Are Most Affected?
The greatest impact is likely to be on organisations that source labour through non-traditional arrangements rather than employing workers directly.
Particular attention should be paid by businesses that:
- Engage self-employed individuals;
- Operate subcontracting arrangements;
- Outsource services to third-party providers;
- Use labour supply agencies;
- Engage workers through online platforms; or
- Utilise complex labour supply chains.
Sectors such as construction, logistics, hospitality, social care, facilities management and retail are expected to be particularly affected, although the changes are not sector specific.
What Has Not Changed?
Whilst the scope of the regime is expanding, the process of undertaking right to work checks has not changed.
This process includes using an online right to work check for non-UK nationals, and either a physical check or using a third-party organisation to undertake checks for British nationals.
Preparing for the October 2026 Changes
Employers should begin reviewing their arrangements well before the implementation date.
- Map Labour Engagement Models
Identify where workers are engaged outside traditional employment arrangements, including through contracts for services, subcontracting arrangements and outsourced services.
- Review Existing Contracts
Review agreements with agencies, contractors and service providers to identify:
- Responsibility for right to work checks;
- Evidence requirements;
- Audit rights;
- Information-sharing obligations; and
- Compliance warranties.
- Strengthen Internal Processes
Businesses should ensure that recruitment, onboarding, procurement and contractor engagement procedures reflect the new compliance framework.
- Train Relevant Teams
Compliance is no longer solely an HR issue. Procurement, legal, operational and contract management teams should understand when right to work obligations may arise and who is responsible for carrying them out.
How We Can Help
The October 2026 reforms represent a significant shift in how right to work compliance is managed. Many organisations that already operate robust employee onboarding processes may nonetheless have exposure through contractor, subcontractor or outsourcing arrangements.
Our business immigration team advises employers on:
- Right to work compliance;
- Sponsor licence compliance;
- Illegal working prevention;
- Contractor and labour supply arrangements;
- Home Office audits and enforcement action; and
- Workforce compliance programmes.
By reviewing your arrangements now, you can identify potential risks and ensure your organisation is prepared before the new rules take effect.
Frequently Asked Questions
When do the new right to work rules come into force?
The changes take effect on 1 October 2026.
Will the right to work checking process change?
No. The existing right to work checking methods remain available. The principal change is the extension of the regime to a wider range of labour arrangements.
Which businesses should be most concerned?
Businesses that engage contractors, subcontractors, outsourced workers or labour through complex supply arrangements are likely to be most affected.
Can these changes affect sponsor licence holders?
Yes. Illegal working penalties can also lead to sponsor licence compliance action and increased Home Office scrutiny
