Right to Work Reforms: What Employers Need to Do Before October 2026

The government has published its response to the consultation on extending the current UK's right to work regime, alongside a draft updated Code of Practice for employers on preventing illegal working. The changes, which are due to take effect on 1 October 2026 through the implementation of section 48 of the Border Security, Asylum and Immigration Act 2025, represent one of the most significant expansions of employer compliance obligations in recent years.

A Wider Scope for Right to Work Checks

Currently, right to work obligations primarily apply to employers engaging individuals under contracts of employment. The reforms significantly widen right to work obligations beyond traditional employment relationships. From October 2026, compliance duties will also apply to certain workers engaged under workers' contracts, individual subcontractors in contracting chains and service providers engaged through online matching platforms. The changes are designed to address modern labour models, including gig economy, zero-hours and platform-based working arrangements.

Summary of Reforms

1. Liability may extend beyond the direct employer, where the direct employer cannot be identified. Failure to meet prescribed safeguards may prevent organisations from establishing a statutory excuse against civil penalties. 
2. Genuinely self-employed businesses remain outside the scope. Independent self-employed individuals contracting directly with clients are not affected. End users or customers purchasing services from independent providers do not become liable simply by commissioning work. 
3. Supply chain compliance requirements increasing. Employers should strengthen contracts and operational controls with clear restrictions on unauthorised subcontracting. Contracts should require compliance with right to work obligations, rights to carry out compliance audits and co-operation with Home Office investigations. These measures are prescribed requirements for establishing a statutory excuse, not just best practice. 
4. Online matching platforms have new compliance responsibilities, so it is essential to review worker onboarding processes, implement robust right to work and identity verification procedures and maintain records to demonstrate compliance when matching workers with customers. 
5. Substitution arrangements require additional checks. Right to work must be verified before work starts so employers cannot rely on the original contractor to verify a substitute's eligibility. Identity checks should confirm the individual working is the same person whose right to work was verified.
6. Digital verification requirements are stricter. Employers using digital checks must use a registered Right to Work Digital Verification Service Provider (DVSP). Using an unregistered or non-approved provider will not establish a statutory excuse against liability.

Preparing for October 2026

The government has acknowledged concerns raised during consultation regarding increased costs, administrative burdens, data protection and the practical challenges of managing complex supply chains. In response, it has stated that implementation will be supported through updated guidance, statutory codes, digital improvements and continued engagement with stakeholders. Nevertheless, the financial and regulatory risks remain significant. Civil penalties continue to be substantial, reaching up to £45,000 per illegal worker for a first breach. Employers should therefore review their workforce arrangements and strengthen compliance frameworks ahead of October. Practical steps include:

• implementing appropriate audit and record-keeping procedures
• providing training for HR, procurement and operational teams
• mapping all worker and contractor arrangements;
• reviewing outsourcing, subcontracting and platform engagement models;
• updating contractual provisions throughout supply chains;
• confirming that any Digital Verification Service Providers are appropriately registered.

Looking Ahead

These reforms demonstrate that right to work compliance is no longer solely an HR recruitment issue. It is becoming an organisation-wide governance and risk management responsibility, requiring robust co-ordination across legal, procurement, operations and compliance functions. Businesses that prepare early will be better placed to minimise risk, demonstrate compliance and avoid the significant financial penalties associated with illegal working under the expanded regime.

If you would like to discuss how these changes may affect your organisation or workforce, contact our Immigration team.

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