Right to Work rules have changed and employers now have extended liability for workers beyond those they directly hire. As of October 1, 2026, this includes subcontractors and workers from online matching services, such as tutoring apps and tradesperson matching apps.
Extended Right to Work checks particularly affect sectors such as:
- Construction
- Property management
- Social care
- Retail
- Health
- Logistics
Businesses in breach of the rules will get a £45,000 fine, with a £60,000 fine for repeat offences.
The rules don’t apply when the work is done outside of the UK. They don’t apply to individuals operating an independent business in their own name or through their own company and contract directly through customers.
Statutory excuse exemption
Exemptions apply under a ‘statutory excuse’ if:
- You require the companies you work with to carry out necessary Right to Work checks on individuals they employ to do relevant work.
- The contract you have doesn’t allow further subcontracting of work/services without written permission from the business at the top of the chain.
- The contract must allow the individual or online matching service to carry out audits of the chain service provider’s compliance with new and existing right to work checks.
- The contract requires the service provider to be cooperative in any Home Office investigation into illegal working. This could be by providing information on the chain, and each employer/service involved in the chain, plus any other information the Home Office feels is relevant to the chain.
Why this is being introduced
The Home Office says that hiring illegal workers undermines the UK’s immigration system and can expose these workers to exploitation and abuse. Having illegal workers could drive unfair competition in the wider market and undermine your insurance if you were to make a claim.
What to do now
First of all, do an audit to establish where you might be at risk of breaking the rules. That could be the companies you work with that can’t confirm Right to Work checks.
The Home Office has a Right to Work checker that you can use to see if someone can work in the UK.
If you find any issues, negotiate with these companies to get amendments to existing contracts to ensure their employees meet the Right to Work provisions.
Shape your terms and procurement for the future. The relevant person in charge of this should know the new rules and penalties. The person who handles the legal side should also be aware of this when they’re drafting up contracts.
You might want to reconsider any companies who are in breach of these rules, or are unclear about their position.
Naomi Goldshtein, a partner at Fragomen, said:
“This represents a major change for businesses built on flexibility, seasonal demand, contractors and last-minute shift cover, and the implications are significant.
“The starting point is to know your workforce. Employers will have strong visibility over direct employees but less oversight of contractors, subcontractors and other contingent labour.
“Businesses must understand who performs work or services, the contractual basis on which they do so and how they entered the workforce. Simply stating that another party is responsible for checks will not be enough.
“Checks must be completed using an approved method, including manual, Home Office online or certified digital verification routes where appropriate.
“Businesses that fail to comply may face civil penalties, operational disruption, reputational damage and, where they hold a sponsor licence, wider compliance consequences. Serious cases may result in criminal prosecution, with a potential prison sentence of up to five years and an unlimited fine.”
Mandeep Khroud, head of immigration at Irwin Mitchell, said: “The Home Office has made clear that it will focus on the reality of working arrangements rather than the labels used in contracts. Businesses that assume a worker is outside the regime simply because they are described as self-employed could be taking a significant risk.”
For more on the new Right to Work rules, have a look at this government guidance.
