Right to work checks used to be the responsibility of the employer, but following the introduction of new rules by the Home Office, this is no longer the whole story.
Changes to the Immigration, Asylum and Nationality Act 2006 mean that, from 1 October 2026, right to work checks apply well beyond traditional employees, and liability can reach businesses further up the supply chain.
Laura Shermon, Associate in our Employment team, looks at what the expanded rules mean for employers and HR teams.
What has changed?
There are two key updates to the rules.
- Widening the definition of ‘employer’. Businesses that engage people under worker contracts, or use individual subcontractors, now have “right to work” check responsibilities, even if those people are not employees in the traditional sense. The same goes for online matching services, such as platforms that connect customers with individuals offering their services.
- Liability now travels further. For example, if a subcontractor employs workers without carrying out the necessary checks and cannot be traced, the business that hired the subcontractor, or another business further up the supply chain, could face penalties. This can now also apply where self-employed individuals provide a substitute to carry out the work in their place.
Not everyone is caught though as genuinely self-employed people remain outside the rules, as do those who buy services purely for their own internal use. For example, a company hiring a cleaner to clean its own offices may qualify for this exception.
Why does this matter?
Costs for businesses not performing the proper checks can mount up quickly where multiple workers are involved, with fines for repeat breaches reaching up to £60,000 for each illegal worker
The bigger shift is in who carries the risk, with many businesses filling gaps in their workforces through contractors, subcontractors and agencies. Until now, checking those individuals was usually someone else’s problem but it is no longer a safe assumption and, if a supplier gets it wrong, you could be the one facing the penalty.
Then there is the wider impact of a Home Office investigation. Further to the financial penalty, breaches have the potential to disrupt operations, harm reputations and damage relationships with customers and suppliers.
What can businesses do?
The good news is that there are straightforward steps that can be taken, even with the rules now in place.
- Review your arrangements. Look back through all contractor and subcontractor agreements to confirm which of your commercial relationships may now fall within the rules.
- Check what your contracts already say. Do your existing agreements deal with who carries out right to work checks, and who is liable if something goes wrong?
- Update your contracts. At a minimum, your agreements should include clear terms requiring suppliers or contractors to carry out and document right to work checks, permit you to audit those checks and to carry out first-day identity checks, and to restrict subcontracting further without your prior written consent.
- Use approved digital providers. If you use technology to carry out checks, choose an authorised digital identity verification service provider.
These steps should help give direction to HR and procurement teams, but with every supply chain being different, the necessary approach will depend on how the business utilises outside labour. Getting legal advice early can help ensure agreements are compliant with the rules.
Thrings’ Employment lawyers are experienced in dealing with business matters that affect the workforce and has acted for both employers and employees from start-ups and SMEs all the way to multinational corporations across a wide range of employment matters. To find out how they can help, please get in contact.
