October 9, 2026/
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From 1 October 2026, UK businesses may need to consider Right to Work checks for people engaged outside traditional employment, including some workers, individual subcontractors and people found through online matching services. Businesses should review how they engage labour, who carries out checks and whether the arrangements provide evidence of compliance.
From 1 October 2026, the Right to Work regime will extend beyond employees to cover certain worker contracts, individual subcontractors and online matching services. Businesses that fail to meet their obligations may face civil penalties of up to £45,000 for a first breach and £60,000 for a repeat breach, as well as possible criminal sanctions in serious cases. The rules do not make every business using an agency or outsourced supplier automatically responsible: liability depends on the arrangement and the parties’ roles.
The Border Security, Asylum and Immigration Act 2025 extends the illegal-working rules to a wider range of working arrangements. From 1 October, the checks regime will cover certain individuals engaged under a worker’s contract, individual subcontractors and online matching services that connect service providers with customers. The change applies across the UK.
This may affect businesses that use casual or zero-hours workers, gig-economy labour, individual subcontractors or platform-based services. It does not mean every self-employed person or supplier is automatically in scope. The Home Office guidance distinguishes people working through an intermediary or platform from those operating an independent business in their own right. The facts and contractual arrangements matter.
The changes also do not, by themselves, alter a person’s employment status for tax or employment-rights purposes. Businesses should assess immigration compliance separately from employment-status questions.
Responsibility will depend on how the person is engaged and how the work is supplied.
Where an employment business engages and supplies temporary workers, it will generally be responsible for the check as the worker’s employer for Right to Work purposes. An online platform may also have responsibility where it engages or supplies the individual to carry out work.
Extended liability can apply in some contractual chains. For example, a business that contracts to provide services to a third party and then arranges for another business to supply the people carrying out those services may have obligations under the new rules. However, a business that simply buys a service for its own use will not automatically become liable merely because the supplier’s staff work on its premises. The Home Office guidance says liability depends on the contractual structure and how it operates in practice.
Businesses should not rely on a supplier’s assurance alone where they may have obligations of their own. They should establish who is responsible for checks, obtain and retain evidence, and ensure any contractual safeguards work in practice.
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The civil penalty can be up to £45,000 per illegal worker for a first breach and up to £60,000 per worker for a repeat breach. A penalty is not automatic: it depends on the circumstances and whether the business is found liable under the rules.
In serious cases, knowingly employing someone who does not have the right to work can lead to criminal prosecution, a prison sentence of up to five years and an unlimited fine. Other consequences can include reputational damage and restrictions on sponsoring migrant workers.
A correctly completed prescribed check can provide a statutory excuse against a civil penalty. The check must follow the Home Office requirements in force at the time and, where a person has time-limited permission to work, any required follow-up checks must also be completed.
Start by mapping every route through which people carry out work for the business. Include employees, temporary and casual workers, contractors, subcontractors, agency staff, outsourced teams and platform-sourced labour.
For each arrangement, record:
Update onboarding procedures so that required checks are completed before the individual starts work. Train relevant HR, procurement and operational staff on the permitted check methods, record keeping, escalation procedures and how to identify possible document or identity concerns. Apply checks consistently and avoid discriminatory treatment during recruitment and onboarding.
Review agency and supplier contracts to make responsibilities clear. Depending on the arrangement, terms may cover compliance with Right to Work requirements, prompt notification if permission to work changes, access to relevant evidence, audit rights and controls over substitutions. Contract wording is useful, but it does not replace effective checks or the need to understand how the arrangement works in practice.
For people with time-limited permission to work, keep a secure record of expiry dates and required follow-up checks. Set reminders early enough to investigate any pending application or other status issue before permission expires.
A contract describing someone as “self-employed”, “a contractor” or “agency staff” does not settle who has Right to Work responsibilities. The Home Office may look at who engaged the individual, who arranged the work, whether services are being supplied onward and whether the contractual process operates as intended.
That makes a documented labour-supply review a practical first step. Businesses should identify higher-risk or unclear arrangements, confirm who performs each check, and retain evidence that the agreed process is followed. Where a supply chain is complex, obtain tailored legal or immigration advice before relying on a supplier’s assurances.
The extension means businesses should review their recruitment, procurement and supplier-management processes before 1 October 2026. A clear record of who is responsible, when checks take place and how evidence is retained can help reduce compliance gaps and support a statutory excuse where one is available.
If your business uses contractors, agency workers or outsourced services, a review of your arrangements can help identify where responsibilities may sit and what records or contract terms you should consider.
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From 1 October 2026, the Right to Work regime extends beyond employees to cover certain people engaged under worker contracts, individual subcontractors and online matching services. The change brings more working arrangements within the illegal-working rules, but does not make every self-employed person or supplier automatically subject to a check. The facts and contractual arrangements will matter.
Some contractors and individual subcontractors will be within scope, particularly where they do not operate an independent business in their own right. For agency workers, the employment business that engages and supplies them will generally be responsible for the check. A business using agency staff should still review its contracts and supply arrangements to understand whether any separate obligations apply.
Where a check is required, it should be completed before the individual starts work. For the newly covered non-employee arrangements, the Home Office guidance says civil penalties may apply where the relevant work began on or after 1 October 2026. Some extended-liability requirements also depend on when the relevant contractual arrangements were entered into.
Possibly, but using an agency or buying an outsourced service does not automatically make the customer liable. Extended liability may apply in some arrangements where a business provides or arranges services onward through a contractual chain. The Home Office guidance distinguishes these arrangements from simply buying a service for the business’s own use. Review how the contracts work in practice, not just their labels.
Map how workers, contractors and services enter the business, then record who is responsible for each check, when it must happen and where evidence will be kept. Review agency and supplier contracts, set controls for substitutions, train staff and create reminders for follow-up checks where permission to work is time-limited. Apply checks consistently and avoid discriminatory treatment.
No. The immigration changes do not, by themselves, determine whether someone is employed or self-employed for tax or employment-rights purposes. Businesses should assess Right to Work responsibilities separately from employment status, PAYE and off-payroll working obligations. A contractor’s label in a contract does not settle either question; the relevant rules and the actual working arrangements must be considered.
A business can use a third party to help with checks, but it should not assume that outsourcing removes its own responsibilities. The cost depends on the number of people checked, the provider and any systems or training needed; there is no single standard implementation fee. Confirm who performs each check, who retains evidence and what happens if a worker’s permission changes.
A civil penalty can reach £45,000 per illegal worker for a first breach and £60,000 per worker for a repeat breach. The actual outcome depends on the circumstances and whether the business is found liable. In serious cases, knowingly employing someone without permission to work can lead to prosecution, an unlimited fine and up to five years’ imprisonment.
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