8 July 2026

Long-anticipated right to work regulations have been introduced which extend right to work compliance obligations to a wider range of working arrangements.

Currently, right to work liability applies to traditional employer-employee relationships. From 1 October 2026, these obligations will extend more broadly across labour supply chains. Businesses that fail to comply may face substantial civil penalties of up to £60,000 per illegal worker, as well as criminal liability in cases of deliberate breaches and where there was reasonable cause to believe that illegal working took place.

Who will be in scope?

Direct contractual arrangements
Employers will continue to be responsible for carrying out right to work checks on their direct employees to establish a defence against illegal working.

Subcontracting and labour supply chains
Where workers are supplied through a chain of contractual relationships, responsibility for conducting right to work checks will typically rest with the party that has the direct contractual relationship with the worker. However, in cases where the direct employer cannot be identified, liability for payment of a civil penalty may pass up the supply chain to a different, contracting business.

Businesses who are not directly employing the workers will be required to implement contractual provisions and compliance mechanisms such as substitution controls and identity verification systems to mitigate risk.

Casual and zero-hours workers
Organisations engaging casual workers, including those working on an ad hoc, shift-based or zero-hours basis, will be required to undertake right to work checks on those workers even where there is no ongoing obligation to offer or accept work.

Online matching services
The changes also affect online matching services that provide individuals with work in return for a fee or commission. Depending on the structure of the arrangements, liability will usually be with the online matching service but may extend further.

Who is excluded?
The new requirements are not intended to apply to individuals who are genuinely self-employed and operating businesses in their own right in the provision of direct services to customers.

In addition, end-users or consumers purchasing a completed service for their own use, without passing workers through a wider contractual chain, will generally fall outside the scope of the scheme.

Do the changes apply retrospectively?
The extended provisions do not apply retrospectively. A civil penalty may only be imposed on in-scope working arrangements which commence on or after 1 October 2026.

Key actions for businesses
Businesses that rely on contingent labour, subcontractors or flexible workforce arrangements should take the following steps ahead of the changes:

• review engagement models and implement a decision-making framework to identify which work streams and workers may fall into scope.
• review and update existing contracts with suppliers and contractors to include new right to work requirements and indemnities (subject to employment law advice) and ensure procurement managers are aware of the new requirements so contractual service agreements comply with the new requirements.
• businesses that use sub-contractors and allow substituted workers will have enhanced obligations, including introducing contractual terms that:
  • require contractors to undertake right to work checks;
  • prevent worker substitution without consent;
  • permit audits;
  • enable suspension or termination of agreements in the event of a breach;  and
  • require cooperation with Home Office enforcement action.
• train staff (HR and recruiting managers at a minimum) so they are familiar with the new requirements and know how to conduct non-discriminatory right to work checks on all relevant workers.
• liaise with suppliers and agencies to ensure compliance through supply chains.
• maintain robust recordkeeping to demonstrate compliance.

Businesses that take steps now will be better placed to manage compliance risks and establish a statutory excuse where required.

Get in touch
If your HR team requires assistance understanding these changes, contact your assigned LDI lawyer or our Enquiries team at enquiries@lauradevine.com, and we will be pleased to assist.