August 17, 2026
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A major shift in UK employment compliance is approaching. From October 2026, businesses may face broader obligations for carrying out right to work checks, extending beyond traditional employees and directly hired workers. Companies using subcontractors, freelancers, temporary workers and gig economy arrangements could find themselves responsible for checks they have never had to undertake before.
For employers that rely on flexible labour models, waiting until the legislation is finalised may leave too little time to prepare.
The anticipated right to work checks changes in October 2026 will significantly widen employer responsibilities under the Border Security, Asylum and Immigration Act 2025. Businesses may need to verify the immigration status of subcontractors, casual workers, self-employed individuals and workers engaged through online platforms. Employers should review policies, workforce structures and compliance processes ahead of implementation.
The UK Government’s Border Security, Asylum and Immigration Act 2025 forms part of a wider strategy aimed at tackling illegal working, strengthening border controls and increasing labour market compliance.
The Act received Royal Assent in December 2025 and is expected to introduce extensive reforms affecting employer responsibilities from October 2026, subject to implementing regulations.
Historically, right to work obligations focused primarily on employees and individuals engaged directly under worker contracts. The proposed reforms significantly broaden that approach.
The Government also consulted businesses and stakeholders during late 2025 to understand practical implementation challenges and identify opportunities to simplify compliance procedures.
At the time of writing, final consultation outcomes and implementation regulations have not yet been published.
The most significant change is the widening scope of who requires verification.
Under the expected framework, organisations may need to verify:
This represents a major change for businesses that rely on flexible labour arrangements.
Importantly, liability may no longer end with direct employment relationships. Where work is subcontracted or delegated, responsibility could potentially extend further down the chain.
For example:
A construction company appoints a subcontractor who subsequently sends another individual to perform work. If that substituted worker lacks legal permission to work in the UK, liability may still arise for the business at the top of the arrangement.
This creates a much broader compliance risk than many employers currently manage.
Sectors expected to experience greater impact include:
Another notable change is the proposed introduction of certified digital verification services.
The Government aims to reduce administrative errors and create more consistent compliance procedures through technology.
Rather than relying solely on manual checks, employers conducting electronic verification may increasingly be expected to use certified providers.
Potential benefits include:
Businesses should begin assessing whether existing HR systems and onboarding processes can accommodate future digital requirements.
Employers frequently focus on avoiding illegal working penalties but overlook another significant risk: unlawful discrimination.
The draft Code of Practice places particular emphasis on ensuring right to work checks are conducted consistently and fairly.
Employers should avoid:
Practical expectations under the proposed guidance include:
Businesses should remember that compliance failures can arise from both under-checking and overreacting.
The legislation strengthens the message that immigration compliance is now a board-level issue rather than simply an HR task.
Civil penalties may apply where organisations fail to meet obligations, including situations involving delegated or subcontracted work arrangements.
Potential consequences include:
Businesses operating complex supply chains may face elevated risks where visibility over worker arrangements is limited.
Flexible workforce models have become common across many industries.
However, the proposed reforms could substantially alter operating models for businesses that use:
Online matching services may become responsible for verifying the immigration status of service providers using their platforms.
This marks a major shift in accountability.
Businesses operating in these sectors should not assume existing onboarding systems remain sufficient.
Although regulations remain pending, waiting for final confirmation may create unnecessary risk.
Organisations should begin preparing now.
Early preparation often costs substantially less than reactive compliance projects.
One of the most dangerous mistakes is continuing to benefit from a gifted property.
For example:
This can trigger the “gift with reservation of benefit” anti-avoidance rules.
If these rules apply, HMRC may still treat the property as remaining within the donor’s estate for IHT purposes, effectively defeating the intended planning.
Separate “pre-owned assets tax” rules can also apply in some circumstances.
From an advisory perspective, compliance risks increasingly extend beyond tax and payroll matters. Many businesses now rely on outsourced workers, consultants and flexible labour models without fully understanding the legal exposure sitting behind those arrangements.
The businesses most likely to face problems are often those with complex supply chains rather than traditional employers.
Many organisations already conduct payroll audits and tax health checks. Workforce compliance reviews should increasingly become part of that process.
October 2026 may seem distant, but system changes, workforce mapping and process redesign frequently take longer than businesses expect.
The right to work checks changes expected in October 2026 represent one of the most significant shifts in UK workforce compliance in recent years.
Employer obligations are likely to extend far beyond traditional employment relationships, particularly affecting businesses that rely on subcontractors, casual workers and gig economy arrangements.
Organisations that begin reviewing systems, policies and workforce structures now will place themselves in a stronger position when the final regulations are confirmed.
Early action can reduce disruption, minimise compliance risks and avoid potentially costly penalties.
The rules surrounding workforce compliance are becoming wider and more complex. Reviewing your processes before changes take effect can help avoid unnecessary risk and disruption.
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The Right to Work Checks Changes October 2026 are expected reforms under the Border Security, Asylum and Immigration Act 2025 that widen employer responsibilities. Businesses may need to verify subcontractors, casual workers, freelancers and gig economy workers in addition to employees. These changes matter because non-compliance could lead to financial penalties, legal risks and reputational damage.
The changes are expected to extend compliance responsibilities beyond traditional employment relationships. Businesses using self-employed individuals, subcontractors or temporary workers may need to verify immigration status before work begins. This is particularly relevant in sectors such as construction, logistics and hospitality where complex labour supply chains are common.
Employers should begin preparing now rather than waiting for final regulations. Reviewing policies, auditing workforce arrangements and assessing onboarding procedures early can reduce implementation pressure. Businesses with large numbers of contractors or flexible workers may require additional time to redesign compliance processes.
Manual checks may still exist in some circumstances, but digital verification is expected to become increasingly important. The Government intends to encourage certified digital verification services to improve accuracy and reduce compliance failures. Employers should assess whether their HR and onboarding systems can support future digital requirements.
Yes, businesses using zero-hours or gig economy arrangements are expected to be significantly affected. The proposed reforms are designed to close compliance gaps in flexible labour models. Organisations engaging workers through platforms or informal arrangements should review current processes before implementation deadlines approach.
The reforms are significant because liability may extend beyond direct employees to wider workforce arrangements. Businesses could face responsibility for workers engaged indirectly through subcontracting or delegation chains. This creates broader compliance obligations and increases operational risk for employers with complex workforce structures.
Civil penalties for illegal working can already be substantial and the reforms are expected to strengthen enforcement further. Exact exposure depends on circumstances, including the seriousness of the breach and whether checks were carried out correctly. Beyond fines, businesses may face legal costs, reputational damage and disruption to operations.
Yes, businesses may use digital verification providers or specialist support services, but legal responsibility generally remains with the organisation. Outsourcing administrative tasks does not automatically remove liability. Employers should ensure providers follow Home Office requirements and maintain clear audit records for compliance purposes.
The most common mistake is assuming the rules only affect employees. Other frequent issues include inconsistent checks, poor record keeping, lack of manager training and failing to review subcontractor arrangements. Delaying preparation until regulations become finalised can also create unnecessary operational pressure.
Yes, workforce compliance changes can indirectly affect payroll, employment status and contractor arrangements. Businesses reviewing worker structures often uncover wider issues involving PAYE, off-payroll working, National Insurance or employment status risks. Conducting a broader workforce compliance review may identify tax and operational exposures before they become costly problems.
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