From 1 October 2026, the scope of the Right to Work scheme will be expanded. The new rules will cover not only traditional employer-employee relationships, but also certain contractor, subcontractor and platform-based working arrangements. This makes it important for businesses to review their existing working arrangements and contracts in advance.
The changes introduced under the Border Security, Asylum and Immigration Act 2025 expand the scope of the Right to Work scheme beyond traditional employment to include certain other working arrangements. This could create additional responsibilities, particularly for businesses that obtain services through contractors and subcontractors.
Under the current rules, employing someone who does not have the right to work in the UK can have serious consequences for an employer.
Employers are required to carry out the necessary Right to Work checks correctly before a person starts work and retain the relevant records.
However, the changes introduced by the 2025 Act expand the range of working arrangements to which these responsibilities may apply.
The key change is the broader definition of “employment”.
In practice, this means that Right to Work obligations will no longer be limited to traditional employee-employer relationships. Certain more flexible working arrangements, including situations where individuals are engaged through contractors or subcontractors, may also fall within the scope of the scheme.
Therefore, the fact that a business has not entered into a direct employment contract with an individual does not necessarily mean that it has no Right to Work responsibilities.
One of the most important implications of the new rules may arise in working arrangements involving multiple parties.
For example:
Under the new rules, depending on the circumstances, responsibility may not be limited to Party B. Other parties within the contractual chain, including Party A, may also face potential liability.
Businesses will therefore need to consider not only the individuals they employ directly, but also situations where work is carried out through contractors, subcontractors or other working arrangements.
We recommend that businesses do not wait until 1 October 2026 and instead start reviewing their existing contracts and working arrangements now.
As part of this review, businesses should consider whether their contracts provide sufficient protection against potential future liability. In particular, contracts should include appropriate provisions addressing potential Right to Work liability and require the companies they work with to ensure that the necessary Right to Work checks are properly completed for their workers.
The aim is to minimise the risks a business could face if an individual without the right to work is engaged at any stage of the contractual chain.
Maintaining a valid statutory excuse can protect a business from a civil penalty.
A statutory excuse may arise where an employer has carried out the required Right to Work checks in accordance with Home Office requirements and retained evidence of those checks.
From 1 October 2026, a Right to Work compliance system focused solely on a business’s direct employees may no longer be sufficient.
Businesses that make extensive use of contractors and subcontractors should pay particular attention to their contractual chains, including who is actually carrying out the work and which party is responsible for completing the necessary checks.
For businesses, the key step is therefore to review their existing working arrangements, Right to Work procedures and commercial contracts together before the changes come into force.
If you are unsure how these changes may affect your business or existing contracts, please get in touch with our advisory team.
IAA Immigration Advisor
Meridien House
42 Upper Berkeley Street
W1H 5PW
London, England
+44 7739 699 968
+44 20 3988 0575
contact@lexlegal.com
Lex Legal Limited is an international legal consultancy firm that located in the heart of London. Our areas of expertise and services include legal advice globally as well as immigration consultancy.
Our partner of legal professionals offer considered and comprehensive advice to make an informed decision. We resolve all complex immigration issues and Golden visa programs and work with clients from the initial stages throughout the process which could take up to three months.
Meridien House
42 Upper Berkeley Street
W1H 5PW
London, England
+44 7739 699 968
+44 20 3988 0575
contact@lexlegal.com
