Right to Work Changes 2026: New Rules for Employers, Contractors, Agency Workers and Subcontractors

From 1 October 2026, the UK’s right to work checks will cover broader areas. The change is not limited to share codes, eVisas or the way documents are checked. The more important point is that the Home Office is extending the right to work scheme beyond the traditional employer and employee relationship.

For many businesses, this will be a significant compliance change. Employers have historically treated right to work checks as something to complete when hiring a direct employee. That approach will no longer be enough where a business relies on agency staff, temporary labour, individual subcontractors, platform workers or substitutes.

The practical question for employers is changing. It will no longer be enough to ask, “Is this person on our payroll?” Employers will also need to ask, “Is this person personally carrying out work or services for our business through another arrangement?”

This article explains what is changing, which sectors are likely to be affected, and what employers should do before the new rules take effect.

Why are the Right to Work rules changing?

The Home Office is concerned that illegal working risk is no longer limited to standard employment. Many sectors now rely heavily on flexible labour. Workers may be supplied through agencies, subcontractors, labour providers or online platforms. Some may attend a workplace for one shift, one project or one delivery route without ever becoming a direct employee of the end-user business.

The Home Office has described this as a gap in the current system. Its consultation response on extending the Right to Work Scheme confirms that the scheme is being extended to cover worker contracts, individual subcontractors and online matching services that provide details of service providers to potential clients or customers for payment.

This does not mean that every commercial supplier relationship will automatically be treated in the same way as employment. A genuine independent business providing services on its own account is different from an individual personally supplied to carry out labour for another organisation.

However, employers should not rely on labels alone. Calling someone “self-employed”, “agency staff” or “subcontractor” will not necessarily remove the risk if the individual is personally carrying out work or services in circumstances covered by the extended scheme.

What is changing from 1 October 2026?

The change is being introduced through the wider illegal working reforms in the Border Security, Asylum and Immigration Act 2025. The effect is that the right to work framework will be extended beyond conventional employment and will apply to other working arrangements. Section 48 of the Border Security, Asylum and Immigration Act 2025 refers to worker contracts, individual subcontractors and online matching services.

For employers, the practical effect matters more than the legal drafting. Before the change, many businesses focused mainly on direct employees. A care home checks a care assistant before employment starts. A restaurant checks a chef. A construction company checks a permanent site labourer.

From October 2026, businesses will need to look more carefully at individuals who are not direct employees but still provide labour or services. This may include agency workers, casual workers, individual subcontractors, workers supplied through labour providers, platform workers and substitutes sent in place of another worker.

The Home Office’s impact assessment on extending the prohibition on employment to other working arrangements describes the reform as extending the requirement to conduct right to work checks to businesses using arrangements such as agency workers and gig economy workers.

In simple terms, the Home Office wants responsibility to follow the reality of the work being carried out, rather than the title used in the contract.

This is important because many businesses have historically taken the view that if someone is not their employee, right to work checks are not their responsibility. That assumption is now risky.

Which employers are likely to be affected?

The changes are most relevant to businesses that use flexible, temporary, outsourced or subcontracted labour. This includes care providers, construction companies, hospitality businesses, cleaning and facilities companies, logistics operators, recruitment agencies and online platforms.

The highest-risk arrangements are likely to be those where people attend work at short notice, where staff change frequently, where there are several layers of subcontracting, or where the end-user business does not know exactly who is attending the workplace.

This is why the change is not only an HR issue. In many businesses, the person arranging labour may be a care manager, site manager, hotel manager, events manager or operations manager. Those individuals may need to understand what evidence should be obtained before a worker starts.

Example 1: Agency worker sent to a care home for one night shift

A care home needs urgent night-shift cover. An agency sends a care worker for one shift. The worker is not on the care home’s payroll. The agency emails the care home to say – “Right to work completed. Worker cleared to attend.” At the moment, many care homes may accept that type of confirmation without asking for anything further. From October 2026, this could be too weak on its own.

The care home should know who is attending, what role they are covering, what type of right to work check has been completed, when the check was carried out, whether the worker has any work restrictions, and whether the agency can provide evidence if requested.

The care home should also confirm that the person who arrives is the same person cleared by the agency. In practice, this may mean checking photo identification on arrival and keeping a short record of that check.

For higher-risk cases, especially where the worker has digital immigration status, the safest approach may be for the care home to carry out its own Home Office online right to work check using the worker’s share code before the shift starts.

This is particularly important for care providers because agency staff, bank workers and emergency shift cover are common. A care home should not wait until a Home Office visit to discover that it has no reliable evidence for workers who have already attended shifts.

Employers in the care sector may also find our sponsor licence compliance audit service useful if they are concerned about wider Home Office compliance risks.

For high-risk or last-minute shifts, the safest approach may be for the care home to carry out its own right to work check before the individual starts. Where the care home relies on the agency’s checks, a bare email is unlikely to be a strong defence by itself. The care home should have a written contractual framework and an auditable process.

Example 2: construction subcontractors and labourers

A construction company wins a project. It then uses subcontractors for labouring, plastering, painting, roofing, electrical work and cleaning. Some workers attend site for only a few days. Some are sent by a subcontractor, who may itself be using another labour supplier.

Historically, the main contractor may have taken the view that right to work checks are entirely the subcontractor’s responsibility. From October 2026, that approach should be reviewed carefully.

A construction business should know who is actually coming onto site and whether there is a reliable right to work process in place. It should also review whether subcontractors are allowed to send substitutes or further subcontract the work without approval.

For example, if a named subcontractor is expected on site but another person attends in their place, the business should not assume that the original check is enough. The substitute may also need to be checked before work starts.

A stronger process would include named worker information before site access, right to work obligations in the subcontract, audit rights, identity checks at site entry and records showing who attended site on particular dates.

This does not necessarily mean that the main contractor must duplicate every check carried out by every subcontractor in every case. However, it should not be blind to the individuals working on its site. If the Home Office identifies illegal working, a general statement that “the subcontractor was responsible” may not be enough.

Example 3: hotels, restaurants and hospitality businesses

Hospitality businesses often rely on flexible labour. Hotels may use outsourced housekeeping staff. Restaurants may use temporary kitchen staff. Event venues may use casual staff for functions. Catering companies may use agency staff for one-off events.

The problem is that workers can change quickly. A worker who attends one weekend may not attend the next. A named agency worker may be replaced at short notice. A cleaning contractor may send different staff without informing the client.

From October 2026, hospitality employers should have a more disciplined process. They should know which third parties supply staff, what right to work checks are carried out, what evidence is retained, and how the business confirms that the person attending is the person who has been checked.

For example, a hotel using an outsourced housekeeping provider should not rely on a general contract clause saying that the supplier will “comply with all laws”. The contract should specifically deal with right to work checks, evidence retention, audit rights, substitutions and immediate notification if a problem is discovered.

This is not about creating unnecessary paperwork. It is about making sure that, if the Home Office asks questions, the business can provide a credible answer.

Example 4: online platforms and gig economy work

The new rules also address online matching services.

Some platforms connect workers or service providers with customers for payment. This may include delivery drivers, couriers, cleaners, tradespeople, beauty workers or other service providers.

The platform may argue that it is not the employer and simply introduces the individual to a customer. The new rules are designed to bring certain online matching arrangements into the right to work framework where the platform keeps details of service providers, matches them with customers and receives payment, commission or another financial benefit.

This is a significant development for platform-based business models. Platforms may need systems to check right to work before individuals are allowed to accept paid work. They may also need safeguards against account sharing, substitution and identity misuse.

Example 5: recruitment agencies and labour suppliers

Recruitment agencies and labour suppliers will also need to prepare.

Many agencies already carry out right to work checks. The issue is whether the process is properly documented and whether end-user clients receive enough assurance.

A vague email saying “right to work completed” may be better than nothing, but it is unlikely to be best practice. A more useful confirmation would identify the worker, the role or shift, the date of the check, the type of check completed, any work restrictions and any visa expiry or follow-up check date.

End-user clients should also review their agreements with agencies. The agreement should say who is responsible for checks, what evidence must be kept, when evidence must be provided, what happens if an issue is discovered, and how substitutions are controlled.

This is particularly important for care providers, hospitality venues and warehouses where workers may be supplied at short notice.

What should employers do before October 2026?

Employers should use the period before 1 October 2026 to review how people work for the business.

The first step is to identify every route through which individuals provide work or services. This should not be limited to payroll. Employers should include agency staff, bank staff, casual workers, individual contractors, subcontracted labour, cleaners, security staff, maintenance workers and platform-based workers where relevant.

The next step is to review higher-risk arrangements. These are usually arrangements where workers attend at short notice, staff change frequently, there are several layers of subcontracting, or the business does not know exactly who is attending the workplace.

Employers should then review agency and subcontractor agreements. Contracts should include clear right to work obligations, evidence retention requirements, audit rights, notification duties and substitution controls.

Operational procedures may also need to change. In many businesses, the person arranging labour is not in HR. It may be a care manager, site manager, hotel manager, events manager or operations manager. These staff need to understand what evidence must be obtained before a worker starts.

Record keeping will be crucial. The statutory excuse depends on evidence. If the employer cannot show what was checked, when it was checked and who carried out the check, it may be difficult to defend a civil penalty.

For licensed sponsors, this should also be considered alongside wider Skilled Worker sponsor licence compliance and ongoing sponsor licence support.

Civil penalty and sponsor licence risk

The civil penalty risk remains serious. Employers can face a civil penalty of up to £60,000 per illegal worker, and in serious cases criminal sanctions may apply where the employer knew or had reasonable cause to believe the person did not have the right to work.

For licensed sponsors, the consequences can be wider than the penalty itself. A civil penalty or repeated right to work failure may trigger sponsor licence compliance action. This could lead to a Home Office audit, licence downgrade, suspension or revocation depending on the facts.

That is why sponsor licence holders should treat the October 2026 change as part of their wider sponsor compliance framework. Right to work checks, migrant monitoring, absence records, SMS reporting and recruitment records all form part of the same compliance culture.

Employers can also use our Sponsor Licence Compliance Risk Calculator to identify potential weaknesses before a Home Office audit.

FAQs: Right to Work Checks 

1. What are the UK right to work changes from 1 October 2026?

From 1 October 2026, the Right to Work Scheme will extend beyond traditional employees. It will cover wider working arrangements, including worker contracts, individual subcontractors and online matching services. This means some businesses will need to check individuals who are not on payroll but are still personally providing work or services.

2. Do employers need to check agency workers?

Employers using agency workers should review their arrangements carefully. In many cases, the agency may carry out the right to work check as the direct employer or labour supplier. However, the end-user business should not rely on a vague assurance. It should have clear contractual terms, evidence-sharing obligations, audit rights and identity verification processes. In high-risk cases, the end-user may decide to conduct its own check before the worker starts.

3. Do the new rules apply to genuine self-employed businesses?

Not necessarily. A genuinely self-employed person operating an independent business and contracting directly with clients may be outside scope in many cases. However, the label “self-employed” is not decisive. Employers should look at the reality of the arrangement, including personal service, control, substitution, intermediary involvement and whether the individual is effectively providing labour.

4. Which industries will be most affected?

The biggest impact is likely to be felt in sectors that rely heavily on flexible labour, subcontractors, agency staff or platforms. This includes care, construction, hospitality, warehousing, logistics, cleaning, security, facilities management, beauty services, food delivery and online matching platforms.