Currently, a business is generally only liable for a civil penalty (or a criminal offence where it acts knowingly or with reasonable cause to believe) if it directly employs someone without the right to live or the appropriate right to work in the UK. From October 1, 2026, section 48 of the Border Security, Asylum and Immigration Act 2025, which amends the Immigration, Asylum and Nationality Act 2006, changes that in two ways:
- The definition of “employment” for right to work purposes expands to cover worker’s contracts, individual subcontractors and online matching services that match workers to clients, in addition to traditional contracts of employment
- A new “extended liability” regime means a business can face a civil penalty of up to £60,000 per illegal worker found in its subcontracting chain, through an online matching service it operates, or under a substitution clause – even with no direct relationship with the worker
The Home Office’s draft code of practice on preventing illegal working, code on avoiding unlawful discrimination and Employer’s guide to right to work checks, published this summer with final versions expected before commencement, provide further detail on how these new rules will operate. Businesses that map exposure now will be far safer than those treating this as a routine update to the checking process.
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* Vanessa Ganguin is a Partner (Consultant) in Littler’s London office.
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