All UK employers have a legal duty to prevent illegal working by conducting right to work checks before employing someone. From 1 October 2026, UK Right to Work rules changed, extending compliance obligations beyond traditional employment relationships into a wider range of working arrangements.

Emphasis HR & Training prepared this guide using the Home Office Employer’s guide to right to work checks, dated 1 October 2026, and it provides employers with a practical summary of the key changes and actions to consider.

It is provided for general information and guidance only and does not constitute legal or immigration advice. The application of the Right to Work Scheme will depend on the particular circumstances and contractual arrangements in each case. Employers remain responsible for complying with relevant legislation and current Home Office guidance.

Government guidance and immigration requirements may change. Employers are therefore advised to always check the latest Home Office guidance before taking action and seek specialist legal or immigration advice where required.

What is changing?

• On 1 October 2026, section 48 of the Border Security, Asylum and Immigration Act 2025 (BSAI 2025) came into force. This section amends and expands the definition of employer for the purposes of sections 15 to 24 of the Immigration, Asylum and Nationality Act 2006 (IANA 2006), and inserts a new section 14A into the IANA 2006.

The Right to Work Scheme now covers people engaged:

• under a contract of employment or apprenticeship;
• under a worker’s contract;
• as an individual subcontractor; or
• through an online matching service within the definition of the Scheme

Whether an arrangement falls within the Right to Work Scheme depends on the nature of the contractual arrangement and how it operates in practice, not the label given to the individual or arrangement. The guidance does not apply to individuals who operate an independent business in their own name or through their own company and contract directly with customers to provide goods or services.

How to assess whether an arrangement may be in scope (as per Employer’s guide to RTW checks):

The Employer’s guide to RTW checks provides examples of what may or may not fall within the scope.

• In some circumstances, businesses may be exposed to liability for illegal work within their labour supply arrangements, even when they do not directly engage with the worker. Section 48 of the BSAI 2025 inserts a new section 15A into the IANA 2006, under which civil penalty liability may also extend beyond the employer who holds the direct contractual relationship with the worker. This is called extended liability.

Extended liability applies where:

• a person is under a contract to provide work or services to a third party and enters into a contract with another employer providing workers to fulfil that contract
• an online matching service provides details of a service provider to clients or customers, and the service provider enters into a contract with a client or customer, or
• an employer employs an individual to provide work or services, and the contractual arrangements allow the individual to substitute their work or services to another individual

The employer with the direct contractual relationship with the worker remains responsible for carrying out a right to work check and establishing a statutory excuse.  The extended liability provisions do not automatically transfer that responsibility to another person in the contractual chain, nor do they make that person liable for another employer’s failure to carry out a right to work check. 

Where the employer with the direct contractual relationship cannot be identified, the Home Office may consider the wider contractual arrangements through which the work or services are being provided when determining liability. If the prescribed requirements have not been met, liability for a civil penalty may extend to another person upstream in the contractual chain.

This could happen where:

• the worker is unsure who their employer is;
• several organisations or intermediaries are involved;
• contracts or other records are unclear or unavailable; or
• substitution or other working arrangements make it difficult to establish who employs the individual carrying out the work.

Where the direct employer cannot be identified, and the required checks have not been completed, the Home Office may extend liability for a civil penalty to another person or organisation further up the contractual chain.

What do employers need to do?

Where the extended liability provisions apply, specific prescribed requirements must be met to establish a statutory excuse against liability for a civil penalty. Therefore, we recommend the following actions:

• Review your workforce: review contractor, consultant, agency worker and outsourced service arrangements to understand how individuals are engaged, who engages them and whether the arrangements fall within the expanded Right to Work Scheme or extended liability provisions.
• Consider substitution arrangements: where a contract allows an individual to provide a substitute, ensure appropriate controls are in place before the work or services begin. Complete a prescribed Right to Work check for any substitute before they start work, and do not delegate responsibility for this check to the individual providing the substitute. Make sure appropriate records are maintained.
• Map labour supply arrangements: understand where agencies, subcontractors and other labour providers are involved and assess whether the new liability rules apply
• Review your current onboarding process: review your existing Right to Work processes to ensure they reflect the Scheme’s wider scope, complete the appropriate prescribed checks before work starts, and maintain appropriate records.
• Review contracts: Where the extended liability provisions apply, you must provide a written statement to establish a statutory excuse. No prescribed wording must be used, but the statement must set out the required contractual terms and conditions and be in place before the work or services commence. Do not rely on existing contractual wording, supplier onboarding, or due diligence processes as a substitute for the required written statement.
• Review or implement ID verification systems: ensure a process is in place to demonstrate that the person carrying out the work is the same person whose right to work check has been completed (this could include workplace ID cards and, where appropriate, biometric verification technology). The Home Office recommends re-verification at least once in any 24-hour period or shift; however, the frequency should be proportionate to the nature of the work and the risk of substitution or impersonation.
• Train your employees: ensure all employees are aware of the recent changes, particularly those involved in recruitment and onboarding.
• Maintain clear records: keep sufficient evidence to show that you have met the prescribed requirements. Depending on the arrangements, this may include contracts and written statements, audit records, assurances that Right to Work checks have been completed, compliance reviews, records relating to substitution and evidence of identity verification measures
• Carry out follow-up checks where required: If a worker has time-limited permission to work in the UK, the employer must carry out a follow-up Right to Work check on or before that permission expires if it intends to continue employing them. No follow-up check is required if the initial check confirms the worker has settled status in the UK or status under the EU Settlement Scheme.
• Apply RTW checks consistently: It is unlawful to discriminate against individuals on the basis of protected characteristics, including race, when carrying out right-to-work checks.

Right to work checks employers can use can be found here: ‘Right to Work Checklist’ and include:

• Manual document-based right-to-work checks
• Home Office online right to work checks
• Right to work check using Right to Work Digital Verification Service Provider (DVSP)

When do the new requirements apply?

The changes apply from 1 October 2026 and are not intended to apply retrospectively.

For workers’ contracts, individual subcontracting arrangements and relevant online matching services, civil penalty liability under the expanded Right to Work Scheme applies where the employment commenced on or after 1 October 2026.

For extended liability, the prescribed requirements apply to relevant contractual arrangements entered into on or after 1 October 2026. An arrangement entered into before this date does not automatically come within scope.

Employers should take care when renewing, extending, or varying an existing contract. Whether this brings the arrangement within scope will depend on the legal and contractual effect of the change.

There is no general grace period, so relevant new arrangements from 1 October 2026 should comply with the new requirements from the outset.

What sanctions apply to illegal working?

If an employer is found to be employing someone illegally and they have not carried out the prescribed checks, they may face sanctions including:

• a civil penalty of up to £60,000 per illegal worker.
• in serious cases, a criminal conviction carrying a prison sentence of up to five years and an unlimited fine.
• closure of the business and a compliance order issued by the court.
• disqualification as a director.
• loss or suspension of the ability to sponsor migrant workers.
• seizure of earnings made as a result of illegal working.
• review and possible revocation of a licence in the alcohol and late-night refreshment sector and the private hire vehicle and taxi sector.

Support for employers carrying out right to work checks

For further information, please refer to the Employer’s Guide to Right to Work Checks: https://assets.publishing.service.gov.uk/media/6abd2b2c26660e5f62a7f193/FINAL_-_Employer_s_guide_to_right_to_work_checks.pdf

How Emphasis HR & Training can help

If you have any questions or would like to discuss any of these changes in greater detail, please contact hello@emphasis.uk.com or 01794 874 232.

This guide is provided for general HR information only and does not constitute legal advice. Employment law and Government guidance may change, and employers should ensure they are using the latest information available.