Right to Work Scheme Changes from October 2026: Is Your Business Ready?

For employers that utilise contractors, subcontractors or outsourced service providers, understanding these changes is important to ensure compliance and minimise the risk of enforcement action.

Historically, Right to Work obligations were primarily associated with employees. Since 1 October 2026, the Right to Work Scheme has been expanded and may now apply to a wider range of working arrangements.

The changes are particularly relevant where businesses engage:

• •Individuals working under a worker’s contract;
• •Self-employed contractors and subcontractors;
• •Individuals sourced through certain online labour-matching platforms; and
• •Workers operating through multi-layered contracting arrangements.

The new framework also introduces the concept of extended liability in certain circumstances. Whilst the organisation directly engaging the worker will generally remain responsible for carrying out the prescribed Right to Work check, other parties within the contractual chain may also need to satisfy certain requirements to establish a statutory excuse against a civil penalty.

The updated framework also places greater emphasis on verifying that the individual carrying out the work is the same person whose Right to Work status has been checked.

Employers should therefore consider whether their existing identity verification and Right to Work procedures remain fit for purpose. In some cases, digital verification solutions may assist organisations in strengthening compliance processes, improving workforce visibility and maintaining clear audit trails.

Many organisations rely on third-party labour to deliver services, complete projects or support business operations. The October 2026 changes mean that businesses may need greater oversight of how workers are supplied, who is responsible for compliance and what safeguards exist within their contractual arrangements.

The Home Office is placing increasing emphasis on understanding:

• •Who is carrying out the work;
• •How those individuals are engaged;
• •Whether there are subcontracting or substitution arrangements in place; and
• •What controls exist to prevent illegal working.

As a result, businesses may need greater visibility across their workforce and supply chains than has previously been required.

The changes are particularly relevant to employers that engage workers through:

• •Contractors;
• •Subcontractors;
• •Labour providers;
• •Service providers; or
• •Other non-traditional workforce arrangements.

Organisations with complex supply chains or limited visibility over who ultimately performs work on their behalf may wish to review their existing arrangements and compliance processes.

The consequences of non-compliance remain significant.

Businesses found to be employing illegal workers may face civil penalties of up to:

• •£45,000 per illegal worker for a first breach; and
• •£60,000 per illegal worker for a repeat breach within three years.

In addition to financial penalties, non-compliance may result in reputational damage, operational disruption and increased scrutiny from the Home Office.

The October 2026 changes place greater emphasis on contractual protections, substitution controls and identity verification measures designed to prevent illegal working.

Employers should consider whether their agreements with contractors, subcontractors and service providers adequately address:

• •Responsibility for Right to Work checks;
• •Restrictions on further subcontracting;
• •Audit and compliance monitoring rights;
• •Record-keeping obligations;
• •Reporting requirements where compliance concerns arise; and
• •Remedies in the event of non-compliance.

Whilst contracts alone will not eliminate risk, they can play an important role in demonstrating that reasonable compliance measures are in place.

Businesses should take the opportunity to review how workers are engaged throughout their operations.

Key questions include:

• •Who is responsible for conducting Right to Work checks?
• •How are checks recorded and retained?
• •Can workers be replaced or substituted?
• •What processes exist to verify workers’ identities?
• •What evidence can be provided if the Home Office requests information?
• •Is responsibility for compliance clearly documented?

If these questions cannot be answered with confidence, further review may be required.

Following the implementation of the October 2026 changes, employers may wish to:

• •Review existing contractor and subcontractor arrangements.
• •Audit current Right to Work procedures.
• •Examine supplier and service agreements.
• •Assess worker substitution processes.
• •Review identity verification measures.
• •Ensure relevant HR, procurement and operational teams understand their compliance responsibilities.
• •Identify any areas where contractual protections or compliance procedures may need to be strengthened.

Taking proactive steps now may help reduce compliance risks and ensure that businesses are well prepared should the Home Office conduct an inspection or compliance review.

At Ashlings Legal, we advise employers on Right to Work compliance, illegal working prevention measures and wider immigration compliance obligations.

As the Right to Work Scheme continues to evolve, it is increasingly important for businesses to understand not only their immediate compliance responsibilities, but also the risks that can arise through wider workforce and supply chain arrangements.

Our immigration team can assist organisations with:

• •Reviewing existing workforce structures;
• •Assessing contractor and subcontractor arrangements;
• •Identifying potential compliance risks; and
• •Advising on practical measures designed to strengthen compliance procedures.

We also support employers with preparing for Home Office compliance activity and ensuring that internal processes remain aligned with current immigration requirements.

Whether you are seeking advice on the October 2026 Right to Work changes, reviewing your existing compliance framework or looking to strengthen your approach to workforce compliance, we can provide practical and commercially focused advice tailored to your organisation’s needs.

If you require advice on your business’s Right to Work obligations, please contact our immigration team.