Right to Work changes from 1 October: What employers should know

Starting 1 October 2026, UK employers will face major changes to the existing Right to Work (RTW) system.

For businesses employing Skilled Workers, the changes are particularly important because RTW compliance remains closely connected to sponsor duties and immigration status checks.

The RTW system is expanding

The most significant change from 1 October is that the RTW system will cover certain working arrangements that previously sat outside the traditional employer-employee model.

This includes individuals engaged under a worker’s contract, individual subcontractors and individuals providing services through qualifying online matching services.

This means businesses should no longer assume that a person falls outside Right-to-Work compliance simply because they are not described as an employee.

Employers should ask:

• Is the business engaging an individual to provide labour personally, or purchasing a genuine service from an independent business?
• Who has the contractual relationship with the individual actually carrying out the work?
• Who controls access to the work?
• Can another person substitute for the individual?

The contractual label alone will not necessarily determine whether the arrangement falls within the RTW system.

Extended liability

One of the most significant changes for businesses is the introduction of extended liability in specified contracts.

The direct employer remains responsible for conducting the Right to Work check. However, in certain circumstances, another organisation further up the contractual chain may also face civil penalty exposure for subcontractors.

This can also apply in certain arrangements involving online matching services and contracts that allow workers to substitute another person to perform the work.

The Home Office guidance clarifies that the extended liability does not mean every organisation in every supply chain automatically becomes liable. The specific contractual arrangements and the way the work operates in practice are important.

For businesses entering relevant contractual arrangements from 1 October, this makes contractual due diligence considerably more important.

Labour-supply contracts need closer attention

Businesses that use labour suppliers, subcontractors, or other organisations to provide workers should review their contracts before 1 October.

The Home Office draft guidance identifies measures including requirements for prescribed Right to Work checks, controls on further subcontracting, audit rights, enforcement provisions and cooperation with Home Office investigations.

A general contractual statement that a contractor is responsible for immigration compliance may therefore be insufficient in certain working arrangements.

Businesses should review:

• Who is responsible for conducting Right to Work checks?
• What evidence must be retained?
• Whether further subcontracting is permitted?
• What approval is required before subcontracting?
• Can the business audit compliance?
• What happens if illegal work is identified?
• How will the parties cooperate with Home Office enquiries?

Substitution

Employers should pay particular attention to contracts that allow workers to provide a substitute.

From 1 October, checking the original worker will not necessarily be enough where another individual actually performs the work.

The substitute must undergo the required RTW check before beginning work. Businesses also need processes to ensure that substitutes cannot begin working before verification is complete.

Employers should be able to demonstrate who actually performed the work and retain evidence of the relevant checks.

This means that RTW compliance may increasingly require operational controls rather than simply an onboarding file.

Identity verification even more crucial

The new framework places greater emphasis on demonstrating that the person carrying out the work is the same individual who underwent the RTW check.

Depending on the working arrangement, businesses may need proportionate systems such as photographic identification, access controls, attendance records, identity cards or other verification measures.

For arrangements involving substitution and extended liability, the Home Office draft guidelines specifically discuss processes for confirming the identity of individuals carrying out work.

The objective is straightforward: An employer should be able to demonstrate not only that a Right to Work check was completed, but that the person actually performing the work was the person whose eligibility was verified.

Digital checks

Digital verification remains an option rather than a requirement for every RTW check.

Where an employer chooses to use a Right to Work Digital Verification Service Provider, the provider must meet the relevant registration and certification requirements.

Using a digital verification provider does not, however, transfer the employer’s responsibility. Employers remain responsible for ensuring that the prescribed process has been followed and that the person present for work corresponds with the verification outcome.

For eVisa holders, the Home Office online Right to Work service remains central. Employers should also remember that the share code must be used for the correct purpose. A worker generating a code for another service does not provide the employer with the required Right to Work evidence.

Follow-up checks essential

The 1 October changes do not create a blanket requirement for employers to repeat Right to Work checks every three, six or twelve months.

Where an employer has established a continuous statutory excuse, a routine repeat check is generally not required. However, where the worker has a time-limited right to work, a follow-up check must be conducted before the existing statutory excuse expires.

Employers should therefore maintain an effective system for recording expiry dates and noting follow-up checks.

For Skilled Worker sponsors, this should sit alongside the employer’s broader sponsor management processes.

What should Skilled Worker employers do before 1 October?

Employers should use the period before the new rules take effect to review more than their standard Right to Work checklist.

First, audit the organisation’s workforce and identify sponsored employees, agency workers, individual subcontractors, outsourced labour and workers operating under substitution arrangements.

Second, review contracts with labour suppliers and subcontractors to determine whether any contractual chain could fall within the extended-liability provisions.

Third, confirm that HR teams understand the difference between retaining a share code and actually completing the Home Office online Right to Work check.

Fourth, check that time-limited permissions are properly noted for follow-up checks.

Finally, consider how the organisation verifies the identity of people actually carrying out work, particularly where substitution or complex contractual arrangements are involved.

Conclusion

The 1 October changes mean that Right to Work compliance needs to be considered as part of a business’s wider workforce and contracting model.

For a straightforward Skilled Worker employee, the core discipline remains familiar:

• Conduct the prescribed check before employment begins
• Confirm that the immigration permission covers the work being undertaken
• Retain the required evidence
• Complete follow-up checks where necessary

For businesses using contractors, subcontractors, labour suppliers or platforms, the system is broader.

Employers should ask:

• Who is actually providing the labour?
• Who has checked that individual?
• How does the contractual chain operate?
• Is substitution possible?
• Can the organisation demonstrate that its compliance controls operate in practice?

If you or someone you know is struggling to figure out how to approach the upcoming changes, please reach out to us at A2Z Immigration today for a free consultation today.