Right to work checks: Wider obligations now in force

Code of practice on preventing illegal working: Right to Work Scheme for employers - GOV.UK

Employer's guide to RTW checks

Key sources

Code of practice on preventing illegal working: Right to Work Scheme for employers - GOV.UK Employer's guide to RTW checks

A broader right to work regime

Historically, right to work obligations focused primarily on individuals employed under contracts of employment. However, section 48 of the Border Security, Asylum and Immigration Act 2025 has widened the scheme to cover additional working arrangements, including individuals engaged under worker contracts, certain individual subcontractors and some online matching services.

The Home Office has made clear that organisations should look beyond contractual labels and consider how arrangements operate in practice. Whether someone is described as self-employed, a consultant or a contractor will not necessarily determine whether the regime applies.

Extended liability for businesses in supply chains

Perhaps the most significant change is the introduction of "extended liability".

A business may now face exposure to a civil penalty even where it does not have a direct contractual relationship with the individual carrying out the work. The provisions are aimed at certain subcontracting arrangements, online matching services and situations where workers are allowed to send substitutes.

The direct employer remains responsible for carrying out prescribed right to work checks. However, businesses higher up a contractual chain may also need to demonstrate compliance with specific Home Office requirements if they wish to establish a statutory excuse from civil fine or penalty for illegal working.

New compliance requirements

To obtain protection against extended liability, organisations need to implement prescribed contractual provisions, including obligations relating to right to work checks, subcontracting controls, audit rights and cooperation with Home Office investigations. Additional requirements apply where substitution arrangements are permitted.

The guidance also places greater emphasis on identity verification. Businesses should be able to demonstrate that the individual carrying out the work is the same individual whose right to work has been checked.

Civil penalties

Failure to establish a statutory excuse can result in significant civil penalties. The current starting point is £45,000 per illegal worker for a first breach and £60,000 per worker for a repeat breach within three years, before any mitigation is applied.

What should employers do now?

These reforms are likely to be most significant for organisations that rely on contingent labour, subcontracting arrangements, platform-based models or contractual chains involving multiple suppliers.

Employers should review:

• who is personally providing work or services across their organisation;
• existing contractor, consultancy and subcontracting arrangements;
• any contractual rights of substitution;
• supplier agreements and audit provisions; and
• onboarding and identity verification processes.

Comment

These changes move right to work compliance well beyond a traditional recruitment issue. For many businesses, particularly those operating through complex supply chains, outsourced service models or flexible labour arrangements, the focus will now need to extend to contractual governance, supplier management and ongoing workforce assurance. Employers should take the opportunity to review existing arrangements before contracts are renewed or new engagements are entered into.


We can support businesses by reviewing workforce models and contractual chains, identifying arrangements that may fall within the extended liability rules, updating contracts and onboarding procedures, and helping to design proportionate audit and identity-verification controls. Our team of employment and immigration experts can also horizon scan to help your business prepare for future Home Office regulations.