Employers in the UK are facing new regulations regarding Right to Work checks that expand their accountability for workers beyond those they directly hire. Effective October 1, 2026, these rules will encompass subcontractors and individuals sourced through online matching services, such as tutoring or tradesperson apps. Significant impacts are expected in various sectors, including construction, property management, social care, retail, health, and logistics.
Companies found in violation of these regulations will incur a £45,000 fine, which increases to £60,000 for repeat offenses. However, the regulations do not apply to work conducted outside the UK or to individuals operating independent businesses who contract directly with clients.
To qualify for a ‘statutory excuse’ exemption, businesses must ensure that entities they collaborate with perform necessary Right to Work checks and that contracts prohibit further subcontracting without written consent. Contracts must also allow for compliance audits and cooperation during Home Office investigations.
The Home Office introduced these measures to combat illegal employment practices that can undermine the UK’s immigration system, potentially expose workers to exploitation, and create unfair market competition.
Businesses are urged to conduct audits to identify risks associated with Right to Work compliance. They should utilize the Home Office’s Right to Work checker and amend contracts accordingly to meet new provisions. Legal teams must also be informed of these changes to ensure adherence in future agreements.
Experts emphasize the importance of understanding workforce dynamics and the contractual conditions under which services are provided to avoid severe penalties, operational disruptions, and reputational damage.
Why this story matters
- Significant changes affect a wide range of industries, increasing accountability for compliance.
Key takeaway
- Employers must actively ensure that all labor sources, including subcontractors, meet Right to Work checks to avoid substantial penalties.
Opposing viewpoint
- Some believe that the new regulations may impose excessive burdens on businesses that rely on flexible labor arrangements.
