The UK’s Right to Work regime has undergone a significant expansion, with changes taking effect from 1 October 2026. While the Government argues that these reforms will help tackle illegal working, they also place greater compliance responsibilities on businesses, particularly those engaging contractors, self-employed individuals, and workers through online platforms.
For many organisations, the changes raise a broader question: where does employer compliance end and immigration enforcement begin?
The changes, introduced under the Border Security, Asylum and Immigration Act 2025, extend the scope of the civil penalty regime beyond traditional employment relationships.
What Has Changed?
Previously, Right to Work obligations primarily applied to individuals employed under a contract of employment. However, the new framework extends potential liability to certain alternative working arrangements, including:
- Contractors and self-employed workers: Individuals personally providing services under qualifying contractual arrangements, even without a traditional employment contract.
- Online platforms: Businesses connecting workers with customers, including certain delivery, transport and cleaning services.
- Subcontracting arrangements: Businesses operating through contractual chains may face liability where individuals working further down the chain lack permission to work.
- Substitute workers: Individuals providing services in place of another worker may also fall within the expanded regime.
Importantly, not every self-employed individual automatically falls within these requirements. The nature of the contractual relationship remains critical when determining whether checks are legally required.
Greater Responsibility for Businesses
Among the expanded categories, subcontracting arrangements are likely to create the greatest practical challenges for businesses.
Businesses may now face immigration compliance obligations even where they do not directly employ the individual performing the work.
For example, a company outsourcing services to another organisation may need to consider whether its contractual arrangements expose it to liability if an individual working within that arrangement lacks permission to work.
This creates additional challenges for businesses relying heavily on outsourcing, particularly in industries such as construction, hospitality, logistics and cleaning.
Businesses should review supplier agreements, clearly allocate responsibility for carrying out checks and ensure robust compliance procedures are in place.
The UK’s Right to Work regime has undergone a significant expansion, with changes taking effect from 1 October 2026.
Digital Right to Work Checks
As the scope of liability expands, accurate Right to Work verification becomes increasingly important. The reforms therefore place renewed emphasis on digital checking processes.
British and Irish citizens can generally demonstrate their Right to Work through prescribed identity documents or an authorised digital identity verification service.
Individuals holding digital immigration status, including eVisas, will usually need their permission verified through the Home Office’s online checking service.
Where an individual’s immigration status cannot immediately be confirmed, the Employer Checking Service may provide an alternative means of verification.
Businesses must retain evidence of completed checks and undertake follow-up checks where required.
Importantly, difficulties accessing digital immigration records should not automatically be treated as evidence that an individual lacks permission to work.
Financial and Legal Consequences
Failure to comply with Right to Work requirements can result in significant penalties.
Civil penalties can reach £45,000 per worker for a first breach, increasing to £60,000 per worker for repeat breaches.
Businesses holding sponsor licences may also face additional Home Office enforcement action, including suspension or revocation of their licence.
However, correctly completing the prescribed checks can provide a statutory excuse against civil liability.
Businesses should therefore ensure that recruitment teams, HR personnel and those responsible for engaging contractors understand their obligations.
The Risk of Discrimination
The financial consequences of non-compliance are significant. However, a regime built around increasingly severe penalties may create unintended consequences for employers’ recruitment decisions.
The expanded regime raises concerns about potential discrimination.
Businesses may become increasingly cautious about engaging individuals whose immigration status is more difficult to verify, particularly those awaiting immigration decisions or experiencing difficulties accessing their eVisas.
However, an individual may retain lawful permission to work while an immigration application or appeal remains pending.
Employers must therefore apply checking procedures consistently and avoid making assumptions based on nationality or immigration history.
Opinion: Is the Government Going Too Far?
Preventing illegal working is undoubtedly a legitimate objective. However, these reforms raise an important question: should private businesses be expected to act as immigration enforcement officers?
Businesses are already expected to navigate complex immigration rules, verify digital records, manage follow-up checks and, in some cases, monitor compliance within subcontracting arrangements. Extending these responsibilities further places additional pressure on organisations that may have limited control over the individuals involved.
Arguably, the Government is transferring an increasing share of immigration enforcement onto private businesses while leaving them exposed to substantial financial penalties.
More concerningly, the fear of non-compliance could encourage businesses to avoid engaging individuals whose immigration status requires additional verification, even when they are legally entitled to work.
The irony is that measures intended to prevent illegal working could inadvertently make it harder for lawful migrants to access employment.
The success of these reforms should therefore be measured not simply by increased enforcement, but by whether they effectively prevent exploitation without creating unnecessary barriers for legitimate businesses and workers.
The expansion of the Right to Work regime represents one of the most significant shifts in employer immigration compliance in recent years. While the objective of preventing illegal working is difficult to dispute, the real test will be whether the new framework strikes an appropriate balance between enforcement, business practicality and fair access to work.
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.
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. 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.
