What's changing?
The Border Security, Asylum and Immigration Act 2025 is expanding the Right to Work ("RTW") Scheme beyond traditional employment. The Act introduces a new concept of "extended liability", which means that RTW checks may also need to be carried out in relation to worker contracts, individual sub-contractors and online matching services. The changes will also mean that some employers may need to conduct RTW checks for suppliers or entities further along a supply chain.
The full updated Scheme can be found here.
Who is affected?
All UK employers, recruitment agencies, staffing platforms, delivery platforms, online matching services and any organisation that sub-contracts work or services.
Effective date: 1 October 2026. There is no grace period.
New right to work obligations
All UK employers must conduct RTW checks before employing someone. If checks are conducted as prescribed by the Home Office ("HO"), the employer will have a statutory excuse against a civil penalty.
Previously, the RTW Scheme applied only to individuals under a contract of employment (i.e., an employee) and any sponsored workers. The changes now extend it to a wider range of working arrangements and introduce a new "extended liability" for employers. The key points to be aware of are as follows:
The definition of "employer" will expand to now cover any person who engages an individual:
- under a contract of employment (same as before);
- under a worker's contract;
- as an individual sub-contractor; or
- through an online matching service providing the details of an individual who is a service provider to potential clients or customers.
Here are some examples drawn from the Home Office guidance that help illustrate how each of these working arrangements will now be caught by the expanded RTW Scheme:
Contract of employment:
An individual is employed as a receptionist at a hotel company to work set shifts. They are a permanent member of staff, paid through the hotel company's payroll, and provide services directly to the hotel's guests. The hotel company is the receptionist's direct employer. As such, the hotel is responsible for the right to work check and may be liable for payment of a civil penalty if the individual is found to be working illegally.
Worker's contract:
An individual is registered with an employment business which supplies temporary workers to bars and restaurants during busy periods. The individual is engaged by the employment business on a contract for services and accepts short-term hospitality assignments when offered. The employment business is the individual's employer for the purposes of the Right to Work Scheme and is therefore responsible for the right to work check. The employment business may be liable for payment of a civil penalty if the individual is found to be working illegally while undertaking that work.
Individual sub-contractor:
An individual signs up to work through a delivery platform. The individual logs into an app when they want to work, accepts delivery requests and gets paid for each delivery they complete. The delivery platform is the individual's employer for the purposes of the Right to Work Scheme. As such, the delivery platform is responsible for the right to work check and may be liable for payment of a civil penalty if the individual is found to be working illegally.
Online matching service
A homeowner would like someone to clean their house and uses an online matching service to find a cleaner. The online matching service matches a cleaner to the customer, and the cleaner personally carries out the cleaning services at the customer's home. The online matching service is the cleaner's employer for the purposes of the Right to Work Scheme. As such, the online matching service is responsible for the right to work check and may be liable for payment of a civil penalty if the individual is found to be working illegally.
Whether 'extended liability' may apply to an arrangement. It will apply where:
- a person is under a contract to provide work or services to a third party and enters into a contract with another employer providing workers to fulfil that contract (sub-contracting chains);
- an online matching service matches a service provider with a client or customer, and the service provider enters into a contract with the client or customer; or
- an employer employs an individual to provide work or services, and the contract permits that individual to substitute their work or services to another individual.
Here are some further examples drawn from the Home Office guidance that help illustrate where 'extended liability' applies:
Subcontracted services
A construction company wins a contract to build new homes. The company engages other businesses through a chain of contracts to provide workers required to complete elements of the project, including laying foundations and bricklaying. The construction company is contractually responsible for delivering work to a third party and relies upon a chain of contracts to provide workers and services required to fulfil the contract.
The contractual arrangements are within scope of the extended liability provisions. For the purposes of the Right to Work Scheme, the construction company may be treated as the employer of any individuals who personally carry out work or services through the relevant contractual chain and may be liable for payment of a civil penalty if an individual is found to be working illegally. To establish a statutory excuse, the construction company must comply with the prescribed requirements in relation to the contractual arrangements.
Substitution arrangements
An individual signs up to work through a food delivery platform. The platform describes the individual as an independent contractor (self-employed) and pays them for each delivery they complete but it does not employ them in the traditional sense. The individual can log into the app when they choose and is permitted to substitute the work or services. On occasions where the individual cannot complete deliveries, they routinely ask a friend to carry it out instead, intending to pass on part of the payment. The agreement between the food delivery platform and the individual allows them to substitute their work or services to other individuals.
The contractual arrangements are within scope of the extended liability provisions. For the purposes of the Right to Work Scheme, the food delivery platform may be treated as the employer of the individual personally carrying out the work or services, including any substitute who undertakes deliveries on behalf of the individual registered to use the platform. The platform may therefore be liable for payment of a civil penalty if that individual is found to be working illegally. To establish a statutory excuse, the platform must comply with the prescribed requirements in relation to the contractual arrangements.
Examples that are exempt from the new RTW changes
Importantly, the changes are not intended to apply retrospectively; contracts signed before the effective date are not in scope of the new rules.
However, the expanded Scheme introduces several ambiguities. For example, where a Master Service Agreement or a framework agreement with a vendor was signed before 1 October 2026, it would not ordinarily be affected by the new rules. But if that agreement allows for extensions or the addition of new individuals after that date, it is unclear whether those later arrangements would be treated as new contracts. If they are, the employer may need to carry out right to work checks for those individuals. We recommend reviewing any such agreements now.
Other arrangements that are exempt will include self-employed contractors and services provided through a personal service company. Here are a couple more examples to help illustrate this:
Self-employed contractor
A member of the public has organised for a plumber to repair a leaking tap in their home. The plumber is self-employed, advertises their services directly to the public through a range of channels and obtains work from multiple customers. A right to work check is not required. The plumber is operating an independent business and is not working within the scope of the Right to Work Scheme.
Provision of services through a personal service company
A graphic designer has been engaged by a client company to work on a specific project through the designer's own personal service company. The personal service company contracts with the client company and invoices them under the personal service company name. A right to work check is not required by the client company. The client company is contracting directly with the personal service company for the provision of services rather than engaging the individual directly within the scope of the Right to Work Scheme.
What you should do now
- Review your onboarding workflows and contractual terms to ensure RTW checks cover all newly in-scope categories (worker's contracts, individual sub-contractors and online matching services).
- Review your existing workforce and contractor base to identify any gaps in RTW compliance.
- Review any master or framework agreements signed before the effective date that allow new engagements after that date, and take advice on whether those may fall within scope.
- If you have any questions about how these changes may affect your organisation, or if you would like help reviewing your current arrangements, please do not hesitate to get in touch with our Immigration team. We would be happy to discuss your specific circumstances and help you prepare for the new requirements.
This is intended as a general overview and does not constitute legal advice. Please contact us for advice tailored to your particular circumstances.