The Home Office has introduced one of the most significant changes to the UK’s illegal working regime in recent years. Following the publication of the revised Code of Practice on 30 June 2026, the new framework will take effect from 1 October 2026, fundamentally changing who businesses must carry out right to work checks on and increasing the potential exposure to civil penalties.
For many organisations, these reforms will require a complete review of existing onboarding, procurement and contractor engagement processes.
What has/will change?
Historically, the obligation to carry out right to work checks applied primarily to individuals employed under contracts of employment or service. From 1 October 2026, section 48 of the Border Security, Asylum and Immigration Act 2025 extends the illegal working regime to a much wider range of working arrangements. This means organisations can no longer assume that immigration compliance rests solely with the direct employer. Depending on the working arrangement, businesses engaging labour through contractors, subcontractors, consultants, freelancers and other non-traditional arrangements may now have right to work obligations and could face civil penalties where illegal working is identified.
Why is this important?
Many organisations regularly engage individuals outside traditional employment relationships, including:
- Contractors and subcontractors
- Agency workers
- Consultants
- Freelancers
- Self-employed individuals
- Labour supplied through third-party providers or online platforms
From October 2026, these arrangements will require careful consideration to determine who is responsible for carrying out right to work checks and maintaining evidence of compliance. The Home Office’s objective is to close perceived gaps in the existing illegal working regime and strengthen immigration enforcement across complex labour supply chains.
The risks for businesses
Failure to comply with the new requirements could expose organisations to:
- Civil penalties for illegal working.
- Sponsor licence compliance action, including suspension or revocation where applicable.
- Criminal liability in the most serious cases.
- Significant reputational damage.
- Disruption to commercial contracts and supply chains.
Importantly, immigration compliance can no longer sit solely with HR teams. Procurement, Legal, Compliance, Operations and Supplier Management functions will all need to understand their responsibilities under the new regime.
For many organisations, these reforms will require a complete review of existing onboarding, procurement and contractor engagement processes.
What should employers be doing now?
Organisations should begin preparing well before 1 October 2026 by:
- Mapping every type of labour engagement across the business.
- Identifying contractors, consultants, freelancers and subcontractors who may now fall within scope.
- Reviewing supplier and contractor agreements.
- Clarifying who is responsible for carrying out right to work checks.
- Updating recruitment, onboarding and procurement procedures.
- Reviewing record-keeping processes.
- Training HR, procurement, legal and operational teams on the new requirements.
Early preparation will help businesses reduce compliance risks and ensure consistent processes across the organisation.
How Clarkslegal can help
Our Business Immigration team is already supporting organisations in preparing for these significant changes.
We can provide:
- Right to work compliance audits.
- Bespoke training for HR, procurement, legal and operational teams.
- Reviews of contractor and labour supply arrangements.
- Sponsor licence compliance reviews.
- Drafting and reviewing internal right to work policies and procedures.
- Practical advice on implementing compliant onboarding processes.
With the implementation date fast approaching, now is the ideal time to review your existing practices and ensure your business is ready for the new regime.
Contact us
If you would like to arrange a right to work compliance audit or bespoke training for your organisation, please contact the Business Immigration team at Clarkslegal. We can help you understand the new requirements, identify potential risks and implement practical solutions before the changes come into force on 1 October 2026.
I can also adapt this into a LinkedIn article, client alert, or email newsletter to promote Clarkslegal’s right to work training services.
