Major Changes to the Right to Work Scheme Are Coming in October 2026

Until 1 October 2026, the requirement to undertake a Right to Work check rests with the employer of individuals who are employed under a contract of employment. From 1 October 2026, the Right to Work scheme will apply to a wider range of working relationships:

• Engaged under certain worker agreements

• Self-employed subcontractors

• Individuals sourced through online matching or digital marketplace platforms

• Other contractual arrangements involving the supply of labour or services

The broadening of the scheme means that businesses who haven’t previously needed to consider illegal working civil penalties will now need to consider immigration compliance. From 1 October 2026, the employer of workers employed under any of the above contracts, will be required to undertake a compliant Right to Work check before employment commences.

Extended Liability

In addition to broadening the scope of ‘employment’ for the purposes of illegal working civil penalties, a new term of ‘extended liability’ will apply to the illegal working civil penalty scheme from 1 October 2026. Extended liability recognises that, in certain contractual arrangements, civil penalty liability may extend beyond the direct employer.

Extended liability can apply in the following circumstances:

• Subcontracting – a person has a contract to provide work or services to a third party and contracts with another employer to provide workers to carry out some or all of the work.

• Online matching services – an online platform connects a service provider with a client or customer, and the service provider then contracts with the client or customer to provide the work or services.

• Substitution – an employer hires an individual to provide work or services, but the contract allows that individual to arrange for someone else to do the work in their place.

From 1 October 2026, those with extended liability will need to establish a statutory excuse against liability for payment of an illegal working civil penalty by demonstrating compliance with prescribed requirements. These prescribed requirements must exist before the work commences.

To comply with the prescribed requirements, those with indirect liability will need to:

1. Amend contractual terms and conditions to incorporate requirements in relation to Right to Work. Additional terms will be required to include, amongst others, a requirement that the employer conducts a compliant Right to Work check; that further sub-contracting is not permitted without written consent; that audits of Right to Work checks can be undertaken; and that the employer or service provider co-operates with the Home Office in the event of an illegal working investigation.

2. Ensure that contracts contain strict substitution controls, requiring a Right to Work check on any substitution.

3. Confirm that proportionate systems are in place to ensure the individual undertaking the work is the same individual who completed a Right to Work check. This could include issuing identity cards or passes; incorporating compliant facial recognition technology; biometric or attendance systems; checks against other records; and re-verification of identity.

What should businesses be doing now?

Businesses should urgently assess whether their existing systems are capable of meeting the expanded Right to Work regime that will be in force from 1 October 2026.

JMW Solicitors LLP’s specialist immigration team can support businesses with ensuring that Right to Work practices are compliant. Please do not hesitate to contact:

Gemma Tracey, Partner & Cathryn Davies, Associate.

In addition to the Right to Work changes, employment law is also seeing a period of significant reform in 2026 and beyond. JMW Solicitors LLP’s employment team will be hosting a webinar on Employment Rights on 01 October 2026.

To register, please visit: https://www.newsontheblock.com/events-and-training/knowledge-bank-employment-rights-2025.

Gemma Tracey, Partner, JMW Solicitors LLP