From 1 October 2026, significant changes to the UK’s Right to Work (RTW) regime will come into force. The reforms expand RTW obligations beyond traditional employment relationships and bring a wider range of labour arrangements within the scope of the illegal working regime.

The changes have been introduced to combat illegal working within a variety of labour models including outsourced labour, temporary and contract workers and subcontracting structures. Sectors such as construction, manufacturing, logistics, hospitality, retail and care are likely to be particularly impacted by the changes however all organisations should familiarise themselves with the new rules to avoid falling foul.

The updated Home Office guidance can be accessed here: Right to work checks: an employer's guide - GOV.UK.

What is changing?

From 1 October 2026, RTW checks will need to be undertaken for a wider range of individuals. In addition to direct employees, employers will also need to complete the prescribed checks on individuals engaged through:

• worker contracts;

• certain subcontracting arrangements;

• certain online matching platforms.

Genuinely self-employed individuals operating independent businesses and contracting directly with customers remain outside the scope of the expanded regime and will therefore not require RTW checks.

Extended Liability

Additionally, there will be extended liability provisions in place meaning that an organisation in the contractual chain may be liable under the RTW regime even where they are not an individual’s direct employer. Whilst responsibility for completing the check remains with the direct employer, your organisation may be at risk of a civil penalty where any of the following scenarios arise:

Labour supply chains

1.     You enter into contract 1 to provide work or services to company B. You then enter into contract 2 with C to source workers to complete contract 1. You may be liable under the extended liability provisions for any illegal working by C’s employees.

Online matching services

2.     You operate an online matching service providing details of a service provider to customers. The service provider enters into a contract with the customer. You may be liable under the extended liability provisions for any illegal working by the service provider.

Substitution

3.     You employ a worker under a contract which allows them to substitute their work or services to another. You may liable under the extended liability provisions in relation to any illegal working by the substituted individual.

Prescribed Requirements

To avoid a penalty under the extended liability provisions, employers will need to ensure they have complied with the Prescribed Requirements, prior to the individual commencing work. The guidance contains comprehensive details of these requirements. By way of a summary, they include:

a. In relation to scenario 1 above, having a written statement in place which sets out (amongst other things) that the employer or service provider carries out a prescribed check before an individual commences work.

b. In relation to scenario 3 above, having substitution controls in place, including for the employer to implement procedures to ensure RTW checks have been carried out.

c. In relation to all three scenarios above, implementing proportionate systems and processes to ensure that the individual presenting for work is the same person whom a check was undertaken on.

What happens if you get it wrong?

Where an employer is found to have been employing someone illegally, and they have not carried out a prescribed RTW check, serious consequences may follow. Civil penalties of up to £60,000 per illegal worker can be distributed, businesses and can be closed, and earnings made as a result of illegal working can be seized.

There may also be personal sanctions. An individual who is found to have been employing workers illegally in breach of the regime may be disqualified from a director role, may face imprisonment of up to five years and/or have to pay an unlimited fine.

Additionally, if your organisation holds a sponsor licence, suspension and even revocation of the licence are potential outcomes of illegal working being discovered. This means any migrant workers employed will no longer be able to work for you and may lose their permission to remain in the UK.

How to prepare for 1 October 2026

The Home Office guidance contains a list of factors which should be considered when determining whether a certain working arrangement is likely to fall within the scope of the regime. Reviewing your current labour arrangements will therefore help you to understand the basis on which your workers are engaged and highlight any potential risk areas.

You should also review your supply chain arrangements. Whilst the changes will not apply retrospectively, any workers engaged from 1 October 2026, even where the contract was entered into before this date, will be subject to the new requirements, particularly with regards to extended liability. As a result, existing labour supply agreements and contractual arrangements may need to be reviewed and updated

Finally, you will want to ensure your internal processes are watertight. Individuals responsible for completing RTW checks must understand how to complete them correctly. RTW training may therefore be beneficial to minimise the risk of non-compliance.

How we can help

CG’s immigration team is on hand to provide practical and helpful guidance on how to prepare for these changes, support your ongoing compliance and risk management.

If you require any support, including RTW training and/or policies, please get in touch with your usual CG contact or feel free to reach out to immigration@cgprofessional.co.uk