Changes to legislation and the revised Code of Practice on preventing illegal working significantly widen the scope of businesses and working arrangements subject to Right to Work (RTW) checks, as of 1 October 2026.
Previously, mandatory RTW checks primarily applied to traditional employer–employee relationships. Under the updated legislation, a much wider range of working arrangements now fall within scope, meaning businesses should review their current procedures to ensure they remain compliant.
Understanding these changes is essential to reducing the risk of financial penalties and potential criminal sanctions.
What are the consequences of failing to carry out right to work checks?
A new section in the Immigration, Asylum and Nationality Act 2006 significantly expands the scope of businesses that may be liable for an illegal working civil penalty or criminal sanction.
Where a business employs or engages an individual who does not have the necessary permission to work in the UK, it may face significant financial consequences.
The starting penalty amounts are £45,000 per illegal worker for a first breach and £60,000 per illegal worker where the business has previously been fined.
Carrying out the appropriate RTW checks and retaining the relevant evidence is therefore crucial. The only defence to an illegal working claim is to show that a proper RTW check has been carried out and records have been retained. Where a business relies on a check carried out by a digital provider, they need to ensure the provider is on the Home Office approved list.
Who is not affected?
The extended liability rules do not apply to every business that uses workers supplied by another company. End users, clients and customers are excluded if they use workers only for their own operations, rather than supplying them to another business.
For example: a manufacturer takes on temporary workers through an employment agency to help meet increased demand. As the manufacturer uses these workers in its own production process and does not supply them to another business, it is classed as an end user. The extended liability rules therefore do not apply to the manufacturer and the employment agency remains responsible as the workers’ direct employer.
Self employed individuals and personal service companies - the rules generally do not apply to individuals who run their own independent business, either in their own name or through their own company, and provide services directly to clients.
For example: a self employed plumber who works for several different customers, would generally not require the client to carry out a RTW check under these rules.
Who will be affected?
Workers contracts - the rules apply to individuals who personally carry out work for a business rather than being employed under a standard employment contract, particularly where they cannot send someone else to do the work and are not genuinely operating an independent business.
Subcontracting chains – the rules can apply when a business agrees to carry out work or provide services for a client but then passes the work to other businesses through subcontracting arrangements.
For example: a construction company hires other businesses to carry out bricklaying work. If workers are involved through this chain of subcontractors, the construction company and other businesses further up the chain may be held responsible for RTW checks.
Common Industries Affected
These changes may affect businesses in sectors such as construction, logistics and facilities management, as well as any business that outsources work or services to another company.
Online matching services – the rules can apply to online platforms that keep a list of service providers and connect them with customers in return for a fee or commission. These platforms can be treated as the employer of the worker carrying out the service, even if they do not directly employ them.
For example: a homeowner uses an online platform to find an electrician, and the homeowner makes an agreement directly with that business. Despite this, the online platform may still be held responsible as the employer of the electrician.
Substitution arrangements – if a worker is allowed to send someone else to carry out the work on their behalf, the business may be treated as the employer of both the original worker and the person who replaces them. This means the business may be responsible for ensuring that the required RTW checks are carried out for both individuals.
How often should right to work checks be carried out?
Not everyone has the same right to work in the UK. Some individuals have time limited RTW because their permission to remain (or visa) expires on a set date.
In these cases businesses and employers will need to:
· Complete checks on or before the expiry of the individuals permission to remain in the UK
· Where the Employer Checking Service (ECS) has been used, complete any required follow-up checks on or before the relevant notice expires
· Retain confirmation of student visa holders’ academic term dates, as their permitted working hours may differ during term time and vacation periods
Businesses should have a reliable system for recording expiry dates and scheduling follow up checks. Missing a deadline could leave a business exposed to compliance risks.
Employers and businesses also need to retain the RTW check documentation for at least 2 years after the end of that individuals engagement or employment.
What should your business do now?
Following the changes introduced on 1 October 2026, businesses should now take the opportunity to review their existing procedures and identify any gaps.
· Review current RTW policies and procedures against the updated requirements
· Identify contractors, sole traders, and other working arrangements that may now fall within scope
· Confirm who is responsible for carrying out checks across direct engagements and relevant subcontracting arrangements
· Ensure any digital identity service providers used are approved where required
· Review record keeping processes and implement reminders for follow up checks
· Provide relevant staff with guidance on the updated requirements
How Help With ISO Can Help You
Keeping up with changes in legislation can be time consuming and challenging, particularly when they affect your existing policies, procedures and day-to-day operations. However, taking the time to review your current processes can help identify gaps, improve compliance and ensure your business is prepared for new requirements.
At Help With ISO, we help businesses develop, implement and maintain effective management systems. Reviewing your existing processes and keeping documentation up to date, can help your business adapt to regulatory changes, maintain compliance and ensure effective practices are in place.
With the updated Right to Work requirements that came into effect on 1 October 2026, now is a good time to review your current arrangements and consider if any changes need to be made.