Right To Work Checks: An Extended Regime Implemented

Right To Work Checks: An Extended Regime Implemented | Tuesday 20 October 2026 | 3 min read

On 1 October 2026, the illegal working regime was extended to include a wider range of working arrangements than previously covered, with potential liability for failure to comply therewith extended through the supply chain. Workers, individual subcontractors, and individuals providing services through online matching providers now potentially fall within the scope of Right to Work Check obligations. In addition, the new rules mean that liability could fall to another business in the supply chain, rather than the business that has the direct contractual relationship with the worker.

The extended liability provisions do not apply to every business that purchases work or services from another business, nor does it apply to a client, customer or end-user who is purchasing work or services for their own internal operations.

In short, the extended liability provisions may apply in three different scenarios:

• Where a person is under a contract to provide work or services to a third party, and they subcontract the work or services to another employer that employs worker(s) to fulfil the contract;
• Where an online matching service matches a service provider with a client or customer to provide work or services, and the service provider enters into a contract with the client or customer; and
• Where an employer employs an individual to provide work or services, and the contract permits a substitute to do the work instead.

Whilst the employer who has the direct contractual relationship with the worker remains liable for undertaking a right to work check properly (and the new rules do not transfer automatically that liability to another entity in the chain of contracts), if the Home Office cannot identify a worker’s direct employer, it may consider the chain of contracts through which the work or services are provided in order to assess whether the extended liability provisions apply.

Where an entity is not in a direct contractual relationship with the worker, and extended liability applies, they are able to establish a statutory excuse against extended liability for payment of a civil penalty.

To establish a statutory excuse to extended liability, businesses must do three things before any work commences:

• Their contracts must include specific contractual terms and conditions. These prescribed requirements cover a number of areas including ensuring that Right to Work checks have been undertaken on workers engaged under the contracts and any substitutes, placing restrictions on subcontracting, permitting compliance audits, allowing for enforcement action in the event of failure to comply (which could include termination of the contract) and requiring compliance with Home Office investigations;
• Substitution controls must be implemented; and
• Practical identity verification systems and processes must be implemented.

Whilst the new rules do not have retrospective effect, it is important for businesses to update existing policies and practices to ensure compliance with the new rules going forward. It would also be prudent for businesses to:

• Map workforce arrangements to see who falls in the expanded scope of the right to work (RTW) checks and ensure that such checks are made in respect of any such individuals going forward;
• Map labour supply chains to identify where extended liability might arise throughout the supply chain.

We can then assist with reviewing and amending existing outsourcing and subcontracting contracts and / or drafting new Written Statements with a view to establishing a statutory excuse in the event of an illegal working finding under the newly expanded regime.

Please contact Gemma Jones at Gemma.Jones@salaw.com for bespoke advice.

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  Gemma
  Jones Consultant
  Employment & Immigration Team

  • Phone 01727 798 054