The UK’s Right to Work rules have changed from 1 October 2026, expanding immigration compliance requirements beyond traditional employees.
Under the updated framework, right to work checks now cover a wider range of working arrangements, including certain workers engaged under a worker’s contract, individual subcontractors and individuals supplied through certain labour arrangements. Online matching services can also fall within the expanded regime.
The changes mean that businesses can no longer look only at their direct employees when considering right to work compliance. Organisations using contractors, subcontractors, agencies or platform-based working models may need to review how they verify workers and manage their supply chains.
What Has Changed From 1 October 2026?
Previously, right to work checks were primarily associated with traditional employment relationships.
The expanded rules now recognise a broader definition of employment for right to work purposes.
The Home Office checklist identifies several arrangements that can fall within the scheme, including:
- Employees working under a contract of employment
- Individuals engaged under a worker’s contract
- Individual subcontractors
- Certain individuals supplied through another business
- Individuals connected to online matching services
The exact obligations depend on the structure of the working arrangement.
Why Has the UK Expanded the Right to Work Scheme?
The changes are designed to address gaps in the traditional right to work system as the UK labour market increasingly uses flexible working arrangements.
Agency work, subcontracting, casual contracts, gig-economy platforms and other labour supply models can make it less obvious which organisation is responsible for checking an individual’s immigration status.
The Government’s consultation identified sectors such as construction, care and hospitality as examples where labour may be supplied through intermediaries or subcontracting arrangements.
The new framework aims to extend responsibility for preventing illegal working across these modern labour arrangements.
Which Contractors Are Affected?
The rules specifically include individual subcontractors within the expanded right to work framework.
An individual subcontractor can fall within the definition where they have entered into an arrangement to provide work or services and another party has contracted with a third party for those services.
Businesses using individual subcontractors should therefore review their existing arrangements and determine whether the new requirements apply.
This does not mean every contractor arrangement is automatically treated in exactly the same way. The contractual structure and nature of the services remain important.
What About Agency Workers?
Agency and labour-supply arrangements can also be affected.
Where a business receives workers or services through another organisation, the direct employer may remain responsible for carrying out the right to work check.
However, the new extended liability provisions can potentially affect organisations further along a contractual chain in certain circumstances.
Businesses should therefore understand who is responsible for the initial check and whether their own arrangements create additional compliance responsibilities.
What Is Extended Liability?
One of the most important aspects of the new regime is extended liability.
In certain arrangements, an organisation can potentially face liability for illegal working involving people supplied through another business or working further down a subcontracting chain.
The purpose is to prevent organisations from avoiding right to work responsibilities simply because labour is supplied indirectly.
However, extended liability does not mean that every organisation in a supply chain automatically becomes responsible for every worker. The specific contractual and working arrangements must be assessed.
How Can Businesses Protect Themselves?
The Home Office has introduced specific requirements for organisations seeking a statutory excuse against extended liability.
Where relevant, businesses may need to have appropriate written contractual terms in place before work or services begin.
These arrangements can include provisions dealing with:
- Right to work compliance
- Further subcontracting
- Audit rights
- Cooperation with Home Office checks or investigations
- Responsibility for right to work checks
- Identity verification
- Substitute workers
Simply adding a general right to work clause to a contract may not be enough. The arrangements must also operate effectively in practice.
What Happens When a Worker Uses a Substitute?
Substitution arrangements are another important part of the new framework.
Where a contract permits a worker to provide a substitute, the substitute may need to undergo a prescribed right to work check before beginning the work.
Businesses also need appropriate controls to ensure that the person actually carrying out the work is the person whose right to work has been verified.
The Home Office checklist specifically highlights substitution controls as part of the requirements for establishing a statutory excuse against extended liability.
Digital Right to Work Checks
Digital verification also has an important role under the updated system.
Employers can use prescribed methods including:
- A manual document-based right to work check
- A Home Office online right to work check
- A check using an approved Right to Work Digital Verification Service Provider (DVSP)
The Home Office guidance states that employers must not discriminate against individuals based on the method available to them and should give workers a reasonable opportunity to use an appropriate prescribed method.
What Should UK Employers Do Now?
Businesses should review their workforce and labour supply arrangements following the 1 October 2026 changes.
This can include:
Review the Workforce
Identify employees, workers, individual subcontractors, agency workers and other people providing services to the business.
Map the Supply Chain
Businesses using labour providers, contractors or subcontractors should understand how workers are supplied and where right to work responsibility sits.
Review Contracts
Existing contractor and supplier agreements should be reviewed to determine whether the contractual terms meet the new requirements.
Check Substitution Arrangements
Where contracts permit substitution, businesses should ensure that appropriate right to work and identity verification procedures are in place before a substitute starts work.
Review Record-Keeping
Businesses should maintain appropriate evidence of right to work checks and related compliance arrangements.
Train HR and Procurement Teams
The changes are not only an HR issue. Procurement, operations and contract management teams may also need to understand the new requirements where labour is supplied through third parties.
What Are the Penalties for Illegal Working?
Employers can face civil penalties where illegal working occurs and the required statutory excuse has not been established.
The updated framework also extends relevant civil and criminal sanctions to certain newly covered working arrangements.
The exact consequences depend on the circumstances and the organisation’s compliance position.
Businesses should therefore treat right to work checks as an ongoing compliance responsibility rather than simply an onboarding formality.
What Does This Mean for UK Businesses?
For businesses that only employ permanent staff directly, the basic right to work process remains familiar.
The bigger change is for organisations that use contractors, subcontractors, agencies, flexible workers or online platforms.
Businesses operating these models may now need greater visibility over who is performing work, how that person was engaged and whether the relevant right to work checks have been completed.
The new regime also makes contractual and supply-chain management more closely connected to immigration compliance.
Frequently Asked Questions
When did the new UK Right to Work rules take effect?
The expanded Right to Work provisions came into force on 1 October 2026. The Home Office published the final employer guidance on the same date.
Do contractors now need Right to Work checks?
Certain contractors are now within the expanded Right to Work scheme, including individuals engaged under qualifying worker contracts and individual subcontractors. The precise requirement depends on the working arrangement.
Do subcontractors need a Right to Work check?
Individual subcontractors can fall within the expanded scheme. Businesses should assess the contractual structure and their responsibilities under the new rules.
Does this apply to agency workers?
Agency and labour-supply arrangements can be affected. The direct employer generally remains responsible for the relevant check, while extended liability can apply in certain contractual arrangements.
What is extended liability?
Extended liability allows certain organisations to face consequences for illegal working within specified indirect labour arrangements, subject to the applicable rules and circumstances.
Do substitution arrangements matter?
Yes. Where substitution is permitted, the business may need to ensure that a substitute’s right to work is checked before they begin work and that appropriate identity controls are operating.
Can businesses still use digital Right to Work checks?
Yes. The Home Office recognises manual checks, Home Office online checks and checks using approved Right to Work Digital Verification Service Providers.
Conclusion
The UK’s Right to Work framework has expanded significantly from 1 October 2026.
The changes extend the scheme beyond traditional employment relationships and bring certain workers, individual subcontractors, labour supply arrangements and online matching services within the wider compliance framework.
For UK businesses, the key issue is understanding who is working for or through the organisation, how they are engaged and where responsibility for right to work compliance sits.
Organisations using contractors or subcontractors should review their workforce structures, contracts, identity verification processes and supply chains to ensure they are operating in line with the new rules.
This article provides general information only and does not constitute legal or immigration advice. Employers should refer to the latest Home Office guidance or seek professional advice regarding their individual arrangements.
