The Home Office has published draft guidance and codes of practice that will significantly reshape the UK’s Right to Work (RTW) regime from 1 October 2026. While employers are familiar with carrying out RTW checks on employees, the forthcoming changes represent a substantial widening of the illegal working framework, extending compliance obligations well beyond traditional employment relationships.
The reforms, introduced under the Border Security, Asylum and Immigration Act 2025, reflect the Government’s increasing focus on modern labour models, outsourced services and complex supply chains. Businesses that engage workers through agencies, subcontractors, labour providers or online platforms should start preparing now.
A New Definition of “Employer”
Perhaps the most significant change is the expansion of who may be treated as an “employer” for RTW purposes.
From October 2026, the RTW scheme will apply not only to organisations employing individuals under contracts of employment, but also to those engaging individuals under:
- Worker’s contracts;
- Individual subcontractor arrangements; and
- Online matching platforms connecting service providers with customers.
This broader definition reflects the reality of today’s labour market, where work is increasingly delivered through flexible, contingent and platform-based arrangements. Organisations that have not traditionally viewed themselves as employers for immigration compliance purposes may now find themselves directly within scope.
Extended Liability Across Labour Supply Chains
The new regime also introduces a potentially far-reaching concept of extended liability.
Under the new framework, the Home Office will continue to pursue the direct employer first where illegal working is identified. However, where the direct employer cannot be identified, or prescribed compliance requirements have not been met, liability may extend further up the contractual chain.
In practice, this means that organisations such as principal contractors, developers, platforms and businesses engaging labour through intermediaries could face civil penalty exposure for illegal working occurring elsewhere within their supply chain.
For sectors that rely heavily on subcontracting arrangements—including construction, logistics, hospitality, social care and facilities management—this represents a significant shift in risk allocation and governance expectations.
New Contractual Requirements
Businesses seeking to establish a statutory excuse against liability will need more than evidence of RTW checks.
The draft guidance requires organisations operating within labour supply chains and intermediary arrangements to have specific contractual protections in place before work commences. These provisions must address:
- Responsibility for conducting RTW checks;
- Restrictions on further subcontracting;
- Audit rights;
- Enforcement mechanisms where non-compliance is identified; and
- Cooperation obligations during Home Office investigations.
Many existing agency agreements, outsourcing contracts and labour supply arrangements are unlikely to contain all the prescribed provisions. Organisations should therefore begin reviewing their contractual documentation well in advance of implementation.
Increased Focus on Substitution Arrangements
The draft framework also contains entirely new provisions dealing with worker substitution.
Where an individual is permitted to provide a substitute to carry out work on their behalf, organisations must ensure that RTW checks have been completed on both the original worker and any substitute before work starts. Responsibility for those checks remains with the organisation and cannot simply be delegated to the worker.
The Home Office will expect businesses to demonstrate robust contractual controls, onboarding procedures and monitoring arrangements designed to prevent unauthorised substitutions taking place.
This will be particularly relevant for sectors and platforms where self-employed individuals frequently retain contractual rights to provide substitutes.
Ongoing Identity Verification
A notable theme running throughout the reforms is identity assurance.
Under the new regime, organisations relying on statutory excuses within labour supply chains or substitution arrangements must be able to demonstrate that the individual performing the work is the same individual whose RTW was originally verified.
The draft guidance identifies a range of acceptable verification methods, including:
- Workplace identification cards;
- Facial verification technology;
- Digital Verification Service Providers (DVSPs);
- Biometric attendance systems; and
- Regular identity re-checks during the engagement.
Importantly, the Home Office suggests that identity verification should take place at appropriate intervals and, where relevant, no less frequently than every 24 hours.
This marks a clear shift away from RTW compliance being viewed as a one-off onboarding exercise.
Other Important Changes
The draft guidance also introduces a number of additional developments, including:
- Enhanced anti-discrimination guidance for employers conducting RTW checks;
- Confirmation that expired Biometric Residence Permits (BRPs) can no longer be accepted as evidence of a right to work;
- Updated provisions reflecting the UK’s transition to eVisas;
- Revised TUPE guidance relating to transferred employees; and
- Expanded guidance concerning supplementary employment restrictions for sponsored workers.
What Should Employers Do Now?
Although the draft guidance may still be subject to refinement before October 2026, employers should not delay preparations.
Key steps include:
- Mapping all categories of labour used across the organisation.
- Identifying arrangements that may fall within the expanded RTW framework.
- Reviewing RTW policies, procedures and record-keeping practices.
- Auditing labour supply chains and outsourcing relationships.
- Updating contracts with agencies, subcontractors and service providers.
- Evaluating existing identity verification and DVSP arrangements.
- Engaging HR, legal, procurement, contract management and operational teams in implementation planning.
How Winckworth Sherwood Can Help
The reforms represent the most significant change to the RTW regime in recent years. Organisations that rely on complex labour models will need to look beyond traditional HR processes and consider their wider contractual and operational arrangements.
Winckworth Sherwood’s Employment and Immigration team can assist with:
- RTW compliance audits;
- Gap analysis and implementation planning;
- Contract reviews and drafting;
- Supply chain risk assessments;
- Training for HR, procurement and operational teams; and
- Strategic advice on managing extended liability risk.
With only a short period before the new regime comes into force, employers should use the coming months to ensure they have the systems, contractual protections and governance structures necessary to comply with the expanded framework and minimise their exposure to civil penalties.