Have you reviewed your Right to Work procedures to comply with the latest changes?

Since 1 October 2026, Section 48 of the Border Security, Asylum and Immigration Act 2025 has been expanded the regime to cover a wider range of working arrangements. 

The updated Home Office guidance confirms that going forward the regime will apply to individuals engaged: 

• as a worker (broadly where the individual undertakes to perform work personally and the other party is not the client or customer of the individual’s own business);
• as an individual subcontractor; and
• through certain online matching platforms. 

The changes mean that simply performing Right to Work checks on your employees will no longer be enough.  Organisations now need to review their use of contractors, subcontractors, freelancers, agency workers, or any other forms of contingent labour to ensure compliance against the new requirements. 

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There is another change to watch

The new regime also introduces “extended liability”. 

This can potentially move a business further up a contractual chain liable for illegal working, even where it does not have direct contract with the individual. 

For example, where a business has contracted to provide services to a customer and uses another employer or labour supplier to provide the workers, the business may need to satisfy additional requirements to establish a statutory excuse against extended liability. 

For most businesses using agency workers purely as an end-user, the agency will generally remain responsible for the underlying Right to Work check. However, the position can become more complicated where those workers are being used to deliver services that the business itself has contracted to provide to a third party. 

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Why is it important?

The consequences for a business for failing to comply with its statutory Right to Work obligations can be significant. 

By performing the right checks an organisation obtains a statutory excuse against liability for a civil penalty, provided the prescribed process has been followed, and any required follow-up checks are completed.

Given that the maximum civil penalty for employing an illegal worker is currently £45,000 per worker for a first breach, with fines of up to £60,000 per worker for subsequent breaches it is clear to see the benefit of ensuring compliance and obtaining the statutory excuse.

In addition there can also be criminal consequences where an organisation knowingly employs someone who does not have the right to work. 

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What should businesses do now? 

Don’t just review your Right to Work policy --- review your workforce. 

Businesses should consider: 

• Mapping their contingent labour arrangements;
• Identifying workers, subcontractors and other individuals who may fall within the expanded regime;
• Reviewing agency and labour-supply contracts; 
• Putting appropriate contractual protections in place; 
• Restricting unauthorised further subcontracting;
• Considering audit and compliance rights; and 
• Keeping a clear record of the reasoning behind any borderline status decisions.

The key message for organisations going forward is simple don’t assume that someone falls outside the right-to-work regime simply because they are not an employee. 

If your business uses contractors, subcontractors, agency workers or other forms of contingent labour, now is the time to understand whether the new Right to Work rules apply to ensure compliance under the new rules. 

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