Right to work checks – new rules from October 2026
The right to work compliance landscape is undergoing its most significant transformation in years. From 1 October 2026, the Home Office’s draft Code of Practice will expand the regime beyond traditional employees to include contractors, casual and agency workers, gig economy staff, and individual subcontractors. This change implements Section 48 of the Border Security, Asylum and Immigration Act 2025, closing gaps that have allowed modern working arrangements to bypass checks.
The reforms introduce an extended liability model, meaning businesses could face civil penalties even without a direct contractual relationship with an individual. Penalties remain substantial at £45,000 per worker for a first breach and £60,000 for repeat breaches, now applying across a far wider range of arrangements. Genuinely self-employed individuals who run their own businesses and contract directly with clients remain excluded from scope.
To establish a defence against penalties, businesses must meet new “prescribed requirements” including contractual controls, substitute worker verification, and identity confirmation processes. Organisations will need written arrangements requiring supply chain partners to conduct checks, prohibit unauthorised subcontracting, permit audits, and cooperate with Home Office investigations. Where substitution is permitted, businesses must ensure substitutes are checked before work starts, with ongoing verification required at intervals no less than once per 24-hour period.
Businesses using digital verification must now use government-registered Digital Verification Service Providers, as unregistered providers will not establish a statutory excuse. The updated Code also strengthens anti-discrimination protections, requiring employers to apply checks consistently regardless of nationality or immigration status and avoid assumptions about right to work based on background or appearance.
With final guidance still awaited, organisations should begin immediate preparation: mapping all non-employee workforce arrangements, reviewing supply chain contracts, updating onboarding processes, and training procurement, legal, HR, and commercial teams. The new rules apply to engagements commencing on or after 1 October 2026, with existing arrangements exempt from retrospective checks—though follow-up checks from that date fall under the new regime.
