How quickly could you produce a Right to Work compliance check under the new October 1st rules if you were asked tomorrow?
Can your business spare £45,000 – £60,000 per worker if this isn’t compliant?
What is Changing?
From 1 October 2026, the UK’s Right to Work Scheme has been extended to cover a wider range of working arrangements beyond traditional employees.
The changes bring certain workers engaged under worker’s contracts, individual subcontractors and online matching services within the scheme. They also introduce extended liability, meaning responsibility for Right to Work compliance can, in certain circumstances, extend beyond the organisation with the direct contractual relationship.
There are also new requirements around contractual arrangements, substitution and identity verification, alongside changes to the use of Digital Verification Service Providers (DVSPs).
After attending a recent BTO webinar on these changes, it became clear just how important it is for employers to understand not only what has changed, but how those changes need to work in practice.
Right to Work compliance is no longer something that sits solely with HR. Procurement, legal, commercial and operational teams may also have an important role to play.
Who is affected?
The Border Security, Asylum and Immigration Act 2025 expands the definition of ‘employer’ for Right to Work purposes.
This can include individuals working under a worker’s contract, certain individual subcontractors, and individuals engaged through online matching services.
The changes may be particularly relevant to businesses that source labour through non-traditional arrangements, including sectors such as hospitality, construction, logistics and the gig economy.
Importantly, this does not mean that every outsourced service or business-to-business arrangement is automatically caught by the new rules. Employers need to look at how their particular contractual arrangements operate in practice.
Extended liability, contracts and substitution
One of the most important changes is extended liability.
In certain circumstances, liability for a civil penalty can extend beyond the organisation with the direct contractual relationship with the worker.
Businesses using agencies, contractors or other labour supply arrangements should therefore review their contracts and consider:
- Who is responsible for carrying out the Right to Work check?
- Who is responsible for keeping evidence of the check?
- Can the work be subcontracted further?
- Are equivalent Right to Work obligations included in any permitted subcontracting arrangements?
- Can the individual send someone else to carry out the work?
Where a substitution clause exists, additional controls may be required. A Right to Work check must be carried out on the substitute before they begin work, and businesses must have reasonable processes to confirm that the person carrying out the work is the person whose Right to Work has been checked.
This could include measures such as workplace ID cards, access passes, biometric systems or facial recognition technology, depending on the circumstances.
Simply putting the right wording into a contract is not enough. The controls must work in practice and be capable of being evidenced.
Civil penalties
Employers must carry out the appropriate Right to Work check before a worker starts work in order to establish a statutory excuse against a civil penalty.
The maximum civil penalty is currently £45,000 per illegal worker for a first breach and £60,000 per illegal worker for a repeat breach within three years, although the actual penalty can be lower depending on the circumstances and any applicable reductions.
The important change from 1 October is that the wider scope of the scheme and extended liability can bring more working arrangements within the compliance framework.
For workers with a time-limited Right to Work, follow-up checks must also be completed when required.
For arrangements involving extended liability, businesses should ensure that the contractual and operational requirements have been met and that evidence is retained.
Right to Work Checks
Conducting a Right to Work Check remains the same, using one of the following methods:
- A manual check using specified & eligible documents from List A or List B.
Once an employer has obtained the original and acceptable documents, a check should be carried out in the presence of the employee. Once verified, these documents should be filed and dated.
Government issued digital documents will be introduced from the 1st of October which will be added to the acceptable list of documents, showing the individual’s name and National Insurance number.
- Via the Home Office Online Check using a Share Code.
Employers should receive the employees’ Share Code and Date of Birth. Once received, a check can be made online via the Home Office checking service, which will provide information on the individual’s right to work, any time limited permissions and any specifications around the work that can be carried out or restrictions on the number of hours that may be worked.
It is crucial to note that having the Share Code itself does not provide a statutory excuse and an online check must be made using this code.
Where an individual’s permission to work is time-limited, the expiry date should be diarised and a follow-up right to work check completed when required.
- Digital Verification Service Provider (DVSP) check for British and Irish Citizens
Right to Work checks can be made through a DVSP for eligible British and Irish citizens.
Employers should take into consideration that the DVSP used must be registered and listed on the Office for Digital ID and Attributes Register and authorised to carry out right to work checks. If not, any Right to Work Check conducted will not provide a statutory excuse.
What does this mean for employers?
The key message is simple: review your workforce, your contracts and your supply chain.
Ask:
- Do you use workers, individual subcontractors, agencies or online platforms?
- Do your contracts clearly state who is responsible for Right to Work checks?
- Can work be subcontracted further?
- Is substitution permitted?
- If so, how will you check and verify substitutes?
- Are time-limited checks diarised?
- If you use a DVSP, is the provider appropriately registered and certified?
- Can you produce the evidence to demonstrate compliance if asked?
The Right to Work Scheme now reaches beyond the traditional employer-employee relationship.
For many organisations, the biggest change isn’t the check itself; it’s understanding who needs to be checked, who is responsible, and whether your processes actually work in practice.
Now is the time to review your arrangement
At Gravitate HR, we help businesses review their workforce arrangements, contracts and Right to Work procedures so they are prepared for the changes taking effect on 1 October 2026. If you would like support assessing your current process or identifying gaps, please Get in touch
