Right To Work Checks: Important Changes For Employers From 1 October 2026

From 1 October 2026, significant changes to the Right to Work ("RtW") regime will take effect, widening the scope of the rules and extending potential liability in certain circumstances.

Businesses should now review any arrangements involving contractors, subcontractors, substitution clauses, labour supply chains or online platforms. The key risk is that liability may no longer sit only with the business that has the direct contract with the worker.

Under current rules, it is illegal for an employer to employ an individual who does not have the right to work in the UK. If they do so, the employer can face civil and criminal penalties. If an employer conducts a compliant RtW check, they can establish a statutory excuse against a civil penalty in the event if it is later found that they have employed an individual without the right to work in the UK.

The changes coming into force expand the concept of employment beyond traditional direct employment contracts and extend liability for civil penalties in certain circumstances. There are also changes to the rules governing digital verification services. The new changes were introduced under the Border Security, Asylum and Immigration Act 2025.

The changes are reflected in the following Home Office documents:

• Draft code of practice on preventing illegal working: Right to Work Scheme for employers (June 2026)
• Draft Employer’s guide to right to work checks (16 July 2026)

It should be noted that both documents remain marked as ‘draft’ on the Home Office’s website and therefore are subject to change.

New working arrangements covered

As well as traditional direct contracts of employment, a wider range of working relationships will be covered by the RtW checks scheme. Those arrangements are, as defined by the Home Office:

• Individual Worker contracts
  • A contract for work or services between an individual and a business, excluding clients and customers of that individual’s profession or business

• Subcontractors
• A contract for work or services between an individual and a business, where that person has been contracted by a third party to provide the same work or services.

• Online matching services
  • A company which operates as an online matching service providing the details of an individual service provider to potential clients or customers. Simply providing the details (within the more detailed definition of an online matching service contained in the draft code) is enough to constitute employment.

The guidance indicates that businesses acting solely as end-users, clients or customers of a service are not intended to be in scope. However, the position should be checked carefully where services are supplied as part of a wider contractual chain. The Home Office guidance for employers provides detailed examples of contractual arrangements that may be in scope at pages 43 to 47.

Extended liability

The employer who has the direct contractual relationship with the worker remains responsible for carrying out a right to work check and establishing a statutory excuse.

However, in certain arrangements, civil liability for unlawfully employing a worker may be extended to other businesses in the chain of contracts. If a business unlawfully employs a worker under one of the above working arrangements without complying with the necessary checks, it may face a civil penalty of up to £60,000 per worker. Other penalties, including a criminal conviction, closure of business premises and sponsor licence revocation, may also be imposed.

The new extended liability rules apply to the following arrangements:

• Subcontracting
  • A business is under a contract to provide work or services to a third party and enters into a contract with another employer who employs one or more workers to carry out all or part of the work or services required to fulfil that contract

• Online matching services
  • 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.

• Substitution
  • An employer employs an individual to provide work or services, and the contract permits that individual to substitute their work or services with another individual who carries them out on their behalf.

If the Home Office cannot identify the employer who holds the direct contractual relationship with the worker, liability for payment of a civil penalty may be imposed on another business upstream in the chain of contracts in relation to the work or services – unless that business can establish a statutory excuse.

Statutory excuses against liability

The rules introduce a new type of statutory excuse against extended liability. To establish the statutory excuse, the business must meet certain requirements relating to the contractual arrangements that are in place.

In broad terms, businesses should focus on the following:

• Written contractual terms: Put the relevant terms in writing before the work or services begin, including obligations requiring the employer or service provider to carry out prescribed RtW checks on any individual employed to perform the relevant work or services.

• Substitution controls: Ensure that any substitute worker has their RtW checked before they begin providing the work or services.

• Identity verification and monitoring controls: Maintain systems to ensure that the person carrying out the work is the person whose identity and RtW were checked.

Digital identity verification providers

If your business uses an identity verification service for RtW checks, you must now also check that the provider is registered with the Office for Digital Identities and Attributes. The register can be checked here: Find registered digital identity and attribute services - GOV.UK.

The Home Office now refers to these platforms and providers as digital verification service providers (“DVSPs”).

What should you do before 1 October 2026?

Businesses should take the following steps now to prepare for the new requirements and minimise compliance risks:

• Audit contractor, subcontractor, labour supply chain, substitution and online platform arrangements to identify which may fall within the extended RtW regime.
• Review contracts and supply chain documentation to ensure appropriate RtW obligations, warranties, indemnities and audit rights are included.
• Check whether any substitution clauses require additional controls before a substitute begins work.
• Confirm that any digital verification service provider used for RtW checks is appropriately registered.
• Train staff responsible for onboarding workers, contractors, suppliers or platform arrangements so they understand the new requirements.

As the current Home Office code of practice and employer guidance are still marked as draft, businesses should keep the position under review and may need to update their processes once the final versions are published.