Preventing illegal working in the UK

What is changing?

Until now, employers have generally only been required to carry out Right to Work checks for individuals employed under a contract of employment.

From 1 October 2026, the duty is significantly expanded and will apply to many additional working arrangements.

Businesses that engage individuals through:

• self-employed arrangements
• contractors
• subcontractors
• agency workers
• casual workers
• zero-hours workers
• gig economy workers
• online labour or job matching platforms

may now have legal responsibilities to verify an individual's Right to Work before work begins.

Why has the law changed?

The Government intends to:

• reduce illegal working
• prevent worker exploitation
• create a level playing field for compliant businesses
• strengthen accountability throughout labour supply chains
• close gaps where individuals could previously work without immigration checks.

Who is affected?

The changes are expected to affect organisations including:

• SMEs
• large employers
• charities
• public sector organisations
• labour providers
• recruitment agencies
• construction businesses
• hospitality
• beauty and personal care
• logistics and delivery businesses
• organisations using freelance or contract labour
• digital job matching platforms.

What employers need to do

Businesses should review their recruitment and engagement processes before October 2026.

This includes:

✓ Identifying all individuals carrying out work for your organisation.
✓ Reviewing contractor and subcontractor arrangements.
✓ Ensuring appropriate Right to Work checks are completed before work starts where required.
✓ Updating recruitment procedures and onboarding checklists.
✓ Reviewing procurement and supply chain contracts.
✓ Training managers responsible for recruitment and engaging workers.
✓ Keeping clear records of all completed checks.

Existing Right to Work checks

The standard Right to Work checking process remains in place.

Employers can continue to undertake checks by:

• Home Office online checking service (where applicable)
• Identity Document Validation Technology (IDVT) via certified
• Identity Service Providers (for eligible British and Irish passport holders)
• Manual document checks where permitted.

The statutory excuse against a civil penalty only applies where checks have been completed correctly and evidence has been retained.

Avoid discrimination

Employers must continue to:

• treat all applicants consistently
• avoid making assumptions based on nationality or ethnicity
• carry out checks on every individual in the same category
• comply with equality legislation while preventing illegal working.

The revised Home Office Code continues to emphasise avoiding unlawful discrimination during Right to Work checks.

Penalties for non-compliance

Businesses that fail to meet their legal obligations may face:

• civil penalties of up to £60,000 per illegal worker
• loss or suspension of a sponsor licence (where applicable)
• criminal prosecution where illegal working is knowingly facilitated
• reputational damage
• disruption to business operations through Home Office enforcement action.

Practical actions before 1st October 2026

Complete an audit: Identify everyone carrying out work for your business—not just employees.

Review contracts: Consider whether contractor and freelance arrangements are affected.

Update policies: Amend recruitment and onboarding procedures.
Train managers: Ensure anyone engaging workers understands the new requirements.

Review labour suppliers: Obtain assurance that agencies and subcontractors are meeting their obligations where appropriate.

Keep accurate records: Maintain evidence of all Right to Work checks completed.

✔ Don't assume the changes only affect employees.
✔ Review anyone carrying out work on behalf of your organisation.
✔ Update recruitment documentation before 1 October 2026.
✔ Train anyone responsible for recruitment or engaging contractors.
✔ Keep evidence of every Right to Work check.

Need HR support?

Business Gateway can help you:

• Help you understand your Right to Work obligations
• Review recruitment procedures
• Provide advice and guidance on policies and documentation
• Provide advice around the training managers on compliant recruitment practices
• Help you reduce the risk of costly penalties

Early preparation will help ensure your business remains compliant and avoids unnecessary enforcement action as the new rules come into force.

Please note: At the time of writing, the Home Office has published revised guidance and Codes of Practice to support these changes. Employers should continue to monitor official guidance before the rules take effect on 1 October 2026, as further operational detail may be issued. (GOV.UK)

All information contained in this factsheet is accurate as of the date created and is provided for general guidance only. UK Employment Law, Compliance and Best Practice are subject to change. Business Gateway accepts no responsibility for actions taken based on this content. Always consult legal or professional advice before making employment related decisions.

Created: July 2026
Review Date: October 2026