Right to Work checks: what is changing and how to prepare

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From 1 October 2026, the right to work (RTW) regime will look very different for companies in the UK.

The changes, introduced via section 48 of the Border Security, Asylum and Immigration Act 2025, will expand the compliance obligation beyond the traditional employer-employee connection. This upheaval is of particular significance for the construction industry, which naturally relies on a combination of contractors, subcontractors and agency workers, to say nothing of the complex supply chains inherent to the sector.

Broadly speaking, the RTW process for carrying out checks was required of any organisation seeking to employ an individual. Section 48, once in effect, will broaden the scope to include non-employment arrangements.

For industries where projects frequently involve several tiers of contractors and subcontractors, where workers move between sites and project at short notice, the expanded range of arrangements covered by the rule change is likely to substantially impact the construction industry. 

It is conceivable that such a change will result in an increase in scrutiny on such industries, and so it would be prudent to comprehensively understand the arrangements of your business in advance of 1 October, and the risks associated with non-compliance. 

Those now in scope

Under the current rules, a contract of employment is enough to establish employment and require a RTW check. 
From 1 October, the definition may now broadly apply to:

1. A worker’s contract, where work or services is agreed between an individual and a person (note, ‘person’ may be defined as a business);
2. Individual sub-contracting, where work or services is agreed between an individual and person, where the latter is contracted by a third party to provide said work or services; and
3. Online matching services, where a company operates as a service providing details of a separate provider to clients or customers.

All may be deemed as constituting employment and may therefore carry the risk of civil penalty if not managed compliantly with the new rules. 

Liabilities

With new rules, comes expanded penalty liabilities. From 1 October, section 15A of the 2006 Act will stretch civil penalty liability to specialised contractual arrangements. The maximum civil penalty is £60,000 per illegal worker, and this will no longer be limited to those directly employing workers. It is also worth noting the potential for criminal conviction and sponsor licence revocation, depending on the severity of non-compliance. 

The new regime may now treat those who subcontract as employing the individual who provides the work or services. Broadly speaking, the new rules allow the Home Office to act against all parties involves in a chain of subcontracts, no longer restricting civil penalties to those in a direct contractual relationship. It should be noted that the latest Code of Practice sets out a range of factors which the Home Office should first consider before determining the penalty value. This is important, as it is indicated that they will only act where it cannot otherwise identify the person with a direct contractual relationship with the worker in question. 

What you can do 

All companies operating in the UK should have RTW policies and working practices. Unless those policies and template contracts are updated to reflect the changes outlined here, they will be out of date by 1 October. Depending on the scale of your organisation, it may be sensible to evaluated and categorise the employment relationships tied to your model. In doing so, you may then identify the areas of your operation most likely to carry risk, and ameliorate such risk where possible.  

Whether due to additional compliance checks, procedures, or investment in training, an integrated approach to these changes will incur necessary costs. Such costs should be consciously balanced against the potential for financial penalties and operational disruption arising from Home Office compliance action, as outlined above. 

The days are long but the years are short, and October is just around the corner. Those who take proactive steps now to strengthen their arrangements can limit liability now, rather than face damage control later. 

It would be wise to ensure all staff responsible for the recruitment and management of workers are carefully trained on the new RTW scheme. If you are interested in engaging our firm in training tailored to your organisation, please get in touch. 

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