UK businesses should be preparing for one of the most significant expansions of the right to work compliance regime in recent memory. Expected to take effect in October 2026, the changes form part of the government’s broader strategy to tackle illegal working under the UK Border Security, Asylum and Immigration Act 2025, and will place far greater compliance responsibility on organizations across a much wider range of working arrangements.
UK businesses should be preparing for one of the most significant expansions of the right to work compliance regime in recent memory. Expected to take effect in October 2026, the changes form part of the government’s broader strategy to tackle illegal working under the UK Border Security, Asylum and Immigration Act 2025, and will place far greater compliance responsibility on organizations across a much wider range of working arrangements.
The current position
At present, right to work obligations are principally focused on direct employees. Employers must verify an individual’s immigration status before they start work, ensuring they are permitted to work in the UK and to carry out the role in question. Where checks are completed correctly and consistently, employers can establish a statutory excuse against civil penalties if illegal working is later identified. The process is well-established and most HR teams are familiar with the mechanics of conducting compliant checks on employees.
What is changing
The forthcoming reforms are expected to extend right to work obligations well beyond the traditional employment relationship. Under the expanded regime, businesses will likely be required to carry out checks on a much broader range of individuals who provide labour or services, including self-employed individuals, contractors and sub-contractors, freelancers, agency workers, consultants, gig economy workers and partners in limited liability partnerships.
This marks a notable shift in the compliance burden. The policy objective is aimed not only at preventing illegal working but also at addressing exploitation in less formal and more flexible labour models, including platform-based and gig economy arrangements. Although aspects of the legislative programme could evolve, there is currently no indication that these expanded requirements will be delayed or withdrawn.
Penalties and enforcement
The consequences of non-compliance are already severe. Civil penalties can reach up to £45,000 for a first breach and £60,000 for repeated breaches where no valid right to work check has been carried out. In more serious cases, knowingly employing someone without permission to work, or having reasonable cause to believe they lack it, can result in criminal sanctions, including an unlimited fine and imprisonment.
For sponsor licence holders, the risks are particularly acute: compliance failures can lead to licence revocation, potentially resulting in sponsored workers losing their immigration permission and the business being unable to recruit overseas talent in the future. Employers should also be alert to the Home Office’s increasingly data-led approach to enforcement.
Practical steps for employers
Organisations should use the period before October 2026 to prepare. Key steps include reviewing current workforce engagement models to identify which categories of workers may fall within the expanded regime and creating a clear decision-making framework for determining when checks are required.
Arrangements with suppliers, agencies and contractors should be reviewed to ensure appropriate compliance obligations flow through the supply chain, with agreements updated to include right to work obligations and suitable indemnity protections. Internally, businesses should review onboarding systems, HR technology and recordkeeping processes, and ensure that HR, procurement, legal and operational functions are aligned.
Looking ahead
Further detail is expected in a forthcoming code of practice, which should clarify some of the more complex issues, including how liability will operate in supply chains and multi-party working arrangements.
However, employers should not wait for final guidance before taking action. The direction of travel is clear: right to work compliance is becoming broader, more complex and more closely scrutinized. Businesses that take proactive steps now will be far better placed to manage risk, evidence compliance and respond effectively if challenged by the Home Office.
Compliance failures are no longer identified solely through physical site visits. The Home Office is making greater use of digital records and data matching, including cross-referencing HMRC information against immigration records. In practice, even relatively minor irregularities could trigger investigation or enforcement action, often with little warning.
Training for recruitment teams and hiring managers on the expanded regime, including the need to conduct checks in a non-discriminatory manner, will be essential. Given the potential financial, criminal and reputational consequences, this is an issue likely to warrant senior leadership and board-level oversight. Conducting a mock audit of current processes to identify gaps before the new regime takes effect is a sensible and practical starting point.
