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Right to work checks from 1 October 2026: What businesses need to know 5 August 2026

"New legislation will extend immigration compliance obligations beyond direct employers and into labour supply chains, subcontracting arrangements and certain platform-based business models, exposing organisations to risks that may previously have sat outside their compliance framework."

For many employers, right to work checks have traditionally been regarded as a recruitment and onboarding requirement. From 1 October 2026, that position changes significantly. New legislation will extend immigration compliance obligations beyond direct employers and into labour supply chains, subcontracting arrangements and certain platform-based business models, exposing organisations to risks that may previously have sat outside their compliance framework.

The changes stem from the Border Security, Asylum and Immigration Act 2025 and are reflected in the Home Office’s draft Employer’s Guide to Right to Work Checks. Whilst the established methods of conducting right to work checks remain largely unchanged, the range of organisations expected to undertake those checks, and the circumstances in which liability can arise, will expand considerably.

Businesses should avoid treating these reforms as simply another update to recruitment procedures.The reforms require organisations to take a wider view of workforce compliance and consider risks that may arise across their labour supply chains, including in areas traditionally overseen by procurement, operations and commercial teams.

A Broader Definition of “Employer”

The most significant change is not how checks are carried out, rather who becomes responsible for carrying them out.

Under the current framework, right to work obligations mainly apply where there is a direct employment relationship. From October 2026, the legislation widens the concept of an employer for immigration compliance purposes to capture a range of working arrangements that have become increasingly common across the labour market.  In practical terms, organisations that have never considered themselves responsible for right to work compliance may now find themselves subject to immigration-related duties and potential penalties.

The new rules are designed to cover situations where individuals provide labour through:

  • worker contracts rather than contracts of employment;
  • certain subcontracting arrangements;
  • labour supply chains; and
  • some online platforms that connect service providers with customers.

This reflects a recognition by the Home Office that the modern workforce is no longer limited to traditional employment models. Organisations are increasingly reliant on outsourced services, contingent labour, self-employed contractors and platform-based work, creating compliance gaps that the government believes the existing framework does not adequately address.

The Introduction of Extended Liability

Perhaps the most notable aspect of the new regime is the introduction of ‘extended liability’.

Historically, responsibility for illegal working generally sat with the organisation directly employing the worker. From October 2026, liability may also arise for parties elsewhere in the contractual chain.

Examples include:

  • businesses that subcontract work to another organisation that supplies labour;
  • organisations that provide workers to fulfil contracts with third parties;
  • online matching platforms that facilitate work between service providers and customers; and
  • arrangements where an individual is allowed to send a substitute worker to perform services on their behalf.

This means businesses can no longer assume immigration compliance is exclusively the responsibility of the entity directly engaging the individual. Responsibility may now extend to organisations that sit further up the supply chain if they cannot demonstrate that appropriate safeguards were in place.

How the Statutory Excuse Will Work in the New Framework

The principle of obtaining a statutory excuse remains central to the regime.

A business that follows the prescribed checking process can establish a defence against a civil penalty if a worker is later found not to have permission to work. However, where extended liability applies, businesses may need to demonstrate much more than simply conducting an immigration check.

The draft guidance places particular emphasis on:

Contractual Controls

Businesses will need clear contractual arrangements: contracts should clearly allocate responsibility for right to work compliance, information sharing and audit rights, helping businesses demonstrate appropriate oversight of third-party labour arrangements.

Substitution Arrangements

Where contracts allow one worker to substitute another person, organisations must have effective mechanisms for controlling and monitoring those substitutions, and simply relying on contractual wording will not be sufficient.

Identity Verification

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"The draft guidance highlights the importance of verifying that the individual carrying out the work is genuinely the person who was originally checked."

The draft guidance highlights the importance of verifying that the individual carrying out the work is genuinely the person who was originally checked. This is particularly relevant in sectors where workers can be supplied through multiple layers of contracting.

Together, these requirements signal a move towards a more holistic compliance model that examines the entire labour arrangement rather than focusing solely on the individual’s immigration status.  The emphasis is increasingly on governance, oversight and accountability across the workforce supply chain, rather than on the completion of a one-off compliance exercise.

How Right to Work Checks Will Be Conducted

For most employers, the practical process of conducting checks will feel familiar.

Businesses will continue to establish a statutory excuse through one of the recognised Home Office routes:

  • a Home Office online check using a share code;
  • a manual check of acceptable documents where permitted;
  • checks completed through an approved Right to Work Digital Verification Service Provider (DVSP) for eligible individuals; or
  • verification through the Employer Checking Service where required.

Importantly, the draft guidance does not fundamentally replace the existing checking methods. Instead, it extends the circumstances in which those methods must be applied and broadens the range of organisations expected to use them.  The real change is not how checks are conducted, but who may be expected to carry them out and oversee compliance. Businesses that rely on contractors, subcontractors or contingent labour should therefore review whether their existing processes are sufficiently robust for the expanded regime.

Which Businesses Face the Greatest Impact?

While every organisation engaging labour should review the changes, the greatest impact is likely to fall on businesses that rely heavily on flexible workforce models or engage workers through complex supply chain arrangements rather than direct employment relationships.

This includes sectors such as:

  • construction;
  • logistics and transport;
  • hospitality;
  • social care;
  • facilities management;
  • recruitment and labour supply; and
  • platform-based services.

Many organisations in these sectors currently operate through layered contractual arrangements that may now attract additional compliance obligations under the extended liability provisions.

Preparing for October 2026

Businesses should avoid treating these reforms as simply another update to recruitment procedures.

A comprehensive review should include:

  • mapping all labour engagement models;
  • identifying where subcontractors and labour providers are used;
  • reviewing contracts and service agreements;
  • assessing substitution arrangements;
  • strengthening identity verification processes;
  • clarifying ownership of right to work compliance across the business; and
  • ensuring procurement, commercial and operational teams understand their responsibilities alongside HR.

Conclusion

The October 2026 reforms represent a significant change in the UK’s approach to preventing illegal working. Rather than concentrating solely on the relationship between an employer and employee, the new framework looks at the wider ecosystem through which labour is sourced and supplied.

"The direction of travel is clear: immigration compliance is becoming a supply chain issue as much as an HR issue."

The direction of travel is clear: immigration compliance is becoming a supply chain issue as much as an HR issue. Businesses that can demonstrate robust governance, clear contractual oversight and effective identity controls will be best placed to manage the new requirements. Those that continue to view right to work checks purely as a recruitment exercise may find themselves exposed to risks in parts of their workforce model that previously received little scrutiny.

The challenge for many organisations will not be the right to work check itself, but ensuring that appropriate compliance measures, contractual protections and oversight mechanisms are embedded throughout their labour supply chains. Preparation will be critical.

WFW’s immigration team is on hand to help. If you have any questions about how the new right to work framework may affect your business, or require assistance reviewing your processes, labour supply arrangements or compliance procedures ahead of 1 October 2026, please get in touch with a member of the team.

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