Right-to-work checks: new rules from 1 October 2026

The right-to-work landscape for UK employers is about to change significantly. From 1 October 2026, new legislation under Section 48 of the Border Security, Asylum and Immigration Act 2025 will fundamentally expand the scope of mandatory right-to-work checks and substantially increase businesses’ potential exposure to civil penalties. If your business engages labour beyond traditional employees, through contractors, subcontractors, agency arrangements, gig workers or supply chains, you need to act now.

What is changing?

Currently, the right-to-work regime primarily captures traditional employer-employee relationships. From 1 October 2026, the definition of “employment” for immigration compliance purposes will be expanded dramatically. Organisations can no longer assume that immigration compliance rests solely with the direct employer.

The new rules will require right-to-work checks for a much broader range of working arrangements, including:

• casual, zero-hours and ad hoc workers;
• individuals personally providing services under a subcontract;
• agency and gig economy workers, i.e. individuals supplied through platforms and online matching services;
• substitution arrangements contracts that allow an individual to substitute another person to do the work in their place.

This will likely have a particular effect on businesses operating in construction, hospitality, logistics, social care, facilities management and technology sectors, although the reforms are not sector specific.

Extended liability

Perhaps the most significant development is the introduction of “extended liability”. Historically, responsibility for illegal working sat with the organisation directly employing the worker. From October 2026, liability may also arise for parties located elsewhere in the contractual chain.

Extended liability means that civil penalties can reach beyond the direct employer to businesses that subcontract work, use online matching services or enter into contracts that permit workers to substitute their labour. Where the direct employer of an illegal worker cannot be identified, liability for payment of a civil penalty may pass up the supply chain to a different contracting business.

However, it is important to note that the reforms do not impose blanket liability throughout the labour supply chain. Responsibility depends on the statutory framework and the contractual relationships between the parties.

Repeat checks on existing workers

Crucially, the new rules do not only apply to new engagements from October 2026. Any repeat or follow-up right-to-work check carried out on or after 1 October 2026, even for a worker who has been with the business for years, must follow the new rules to retain the statutory excuse.

How to conduct right-to-work checks

The recognised Home Office checking routes remain available after 1 October 2026. There are three main methods:

1. Manual (in-person) document checks are suitable for British and Irish nationals without a valid passport or for verifying original documents. You must obtain the original documents, check their validity in the presence of the holder and retain clear copies;
2. Online checks (Home Office online service) are for non-British or non-Irish citizens with a share code. The employee provides their details online, and you verify their right-to-work status via the Home Office system;
3. Digital Verification Service Provider (DVSP) – which was previously known as an Identity Service Provider (IDSP). This route is available for British and Irish citizens with a valid passport. If you choose to use a DVSP from 1 October 2026, it is now mandatory to established that the provider is registered as “RtW DVSP” on the Office for Digital Identities and Attributes (OfDIA) register, specifically authorised for right-to-work checks. However, using a DVSP remains optional, and it is not a mandatory requirement for all employers.

Regardless of the method you use, it is important to remember that the responsibility and liability for civil penalties lies with employers and not the staff performing the checks.

Establishing a statutory excuse against extended liability

Compliant right-to-work checks protect a business against direct liability. However, for extended liability, businesses must meet more rigorous prescribed requirements. Contracts under which in-scope work or services commence on or after 1 October 2026 should incorporate strict, prescribed terms, including:

• rights to audit;
• restrictions on further subcontracting;
• enforcement provisions;
• Home Office co-operation obligations.

These contractual protections must operate effectively in practice, not simply exist on paper.

Penalties

The consequences of non-compliance remain severe and have been increasing in recent years:

• a civil penalty of up to £60,000 per illegal worker;
• where an employer knowingly employs an illegal worker, penalties can include an unlimited fine and up to five years’ imprisonment;
• for licensed sponsors, non-compliance can result in suspension or revocation of the sponsor licence;
• immigration officers have the power to issue an illegal working closure notice which can immediately shut down business premises for up to two days, extendable up to 12 months via a compliance order.

The right-to-work regime is changing frequently, but the 1 October 2026 reforms represent the most significant expansion in scope in recent years. Navigating the complexities of the new rules particularly around extended liability, contractual protections and supply chain compliance requires specialist advice.

Our expert legal team can guide you through the complexities of immigration compliance, conduct compliance audits and help you avoid civil penalties for illegal working. Whether you need to review your contracts, update your right-to-work policies or train your HR and procurement teams, we can provide tailored advice to ensure your business is fully prepared.

If you have a sponsor licence, we can also ensure compliance with your sponsor duties when hiring workers.

Frequently asked questions

When do the new right-to-work rules take effect?

The new rules take effect from 1 October 2026. From this date, the right-to-work regime will apply to a broader range of working arrangements, including certain contractors, subcontractors, agency and gig economy workers and substitution arrangements.

Do businesses need to carry out right-to-work checks on contractors?

From 1 October 2026, businesses may be required to carry out right-to-work checks beyond traditional employees. This can include individuals personally providing services under subcontracting arrangements. Businesses should review how they engage contractors and determine which arrangements fall within the expanded regime.

Do the new rules apply to existing workers?

Yes. Where a repeat or follow-up right-to-work check is required on or after 1 October 2026, the check must comply with the new rules in order for the business to retain a statutory excuse, even where the individual has worked for the business for a number of years.

Can a business be liable if an illegal worker is employed by a subcontractor?

Potentially. The extended liability provisions mean that liability may, in certain circumstances, extend beyond the direct employer to another business within the contractual chain. However, liability is not automatically imposed across an entire supply chain and will depend on the statutory framework and contractual arrangements involved.

What should employers do before 1 October 2026?

Businesses should review their workforce and labour supply arrangements, identify individuals who may fall within the expanded regime and update their right-to-work procedures. They should also consider reviewing contracts with agencies, subcontractors and other labour providers, including relevant audit, subcontracting, enforcement and Home Office co-operation provisions.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on all UK visa and immigration matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay up to date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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