UK Right to Work Scheme Changes Coming into Force on 1 October 2026

UK Home Office has introduced significant changes to the UK’s Right to Work Scheme, with new requirements coming into force on 1 October 2026.

These reforms form part of the Government’s wider efforts to strengthen immigration compliance, tackle illegal working and ensure that everyone working in the UK has the legal right to work. They also reflect the way many businesses now engage workers through agencies, subcontractors, outsourced labour and other flexible working arrangements.

Although the new requirements do not take effect until October 2026, employers should begin reviewing how these changes may affect their organisation and assessing their existing Right to Work compliance procedures well in advance.

Below, we outline the key changes that employers should be aware of.

From 1 October 2026, the scope of the Right to Work Scheme will expand beyond traditional employment relationships.

Employers are already required to carry out Right to Work checks for direct employees. However, from 1 October 2026, the new rules will also apply to certain other working arrangements.

Depending on how your business engages workers, these changes may apply beyond direct employees. For example, they may apply to individuals working under contracts for services. They may also apply to individual subcontractors and certain online matching or platform-based arrangements.

The reforms recognise that many organisations now rely on more flexible labour models and are designed to ensure that all businesses engaging workers take appropriate steps to prevent illegal working.

As a result, employers should review not only their recruitment procedures but also how they engage agency workers, contractors, subcontractors and outsourced labour.

UK Home Office is also widening the circumstances in which businesses may become liable for illegal working.

From 1 October 2026, organisations may face civil penalties even where they are not the direct employer of the individual carrying out the work.

Depending on the contractual arrangements in place, liability may arise where work is provided through subcontracting arrangements, online matching services or substitution clauses.

This means that businesses can no longer focus solely on their direct workforce. Employers should review how contractors, subcontractors and labour providers are engaged. They should also ensure appropriate due diligence is carried out throughout the supply chain.

Taking a proactive approach now can significantly reduce future compliance risks.

The updated Code of Practice places much greater emphasis on the contractual arrangements between businesses that engage workers through third parties.

Commercial agreements should be reviewed to ensure they contain appropriate Right to Work obligations.

This may include:

• Requiring contractors and labour providers to carry out compliant Right to Work checks.
• Restricting unauthorised subcontracting.
• Ensuring equivalent compliance obligations are passed down throughout any subcontracting chain.
• Clearly defining each party’s compliance responsibilities.

Strong contractual controls will help businesses strengthen compliance and reduce the risk of potential civil penalties.

UK Home Office is introducing additional measures to strengthen identity verification throughout the recruitment process.

Businesses will be expected to implement proportionate procedures to ensure that the individual carrying out the work is the same person whose Right to Work has been verified.

Depending on the nature of the organisation, this may include:

• Identity verification procedures.
• Workplace identification measures.
• The use of facial recognition technology where appropriate.

Where substitution arrangements are permitted, employers must verify the Right to Work of any replacement worker. This must be completed before they begin carrying out any work or services.

These measures are intended to reduce opportunities for illegal working and improve compliance across increasingly complex labour supply chains.

UK Home Office is also strengthening the rules surrounding digital Right to Work checks to improve the security and reliability of identity verification.

From 1 October 2026, employers choosing to use a digital provider for Right to Work checks must ensure that the provider is:

• Registered on the Office for Digital Identities and Attributes (OFDIA) Register.
• Authorised to carry out Right to Work checks.

Registered Right to Work Digital Verification Service Providers (RtW DVSPs) will be able to carry out digital Right to Work checks for holders of valid British and Irish passports, including passport cards.

The updated Code also permits the use of facial recognition technology as part of identity verification where appropriate.

In addition, British and Irish passports, including passport cards, may be accepted for digital identity verification for up to six months after their expiry date. This provides greater flexibility for remote Right to Work checks in certain circumstances.

It is important to note that employers are not required to use a registered digital provider. However, where a business chooses to use digital identity verification, it must ensure that the provider complies with the new Home Office requirements.

These reforms support the Government’s wider objective of expanding secure digital identity verification while improving the efficiency of recruitment and onboarding processes.

Although the reforms do not come into force until 1 October 2026, businesses should begin preparing well in advance.

Employers should consider:

• Reviewing existing Right to Work procedures.
• Conducting a mock Right to Work compliance audit to identify any weaknesses before the new rules take effect.
• Identifying where agency workers, contractors, subcontractors or outsourced labour are used.
• Reviewing contracts with labour providers and subcontractors.
• Ensuring appropriate processes are in place to verify the identity of workers and any permitted substitutes.
• Confirming that any digital identity verification provider used is registered and authorised to carry out Right to Work checks.

Preparing early will help organisations reduce compliance risks and ensure they are ready when the new rules become effective.

The changes coming into force on 1 October 2026 represent one of the most significant developments to the UK’s Right to Work Scheme in recent years.

Many businesses now rely on agency workers, contractors, subcontractors and outsourced labour. Employers should use this time to review their existing Right to Work procedures. They should also prepare for the new compliance requirements before they take effect.

Taking proactive steps now can reduce the risk of civil penalties. Employers should review their recruitment processes and strengthen contractual arrangements. They should also verify identity procedures and conduct a mock Right to Work compliance audit. These measures will help organisations remain compliant with Home Office requirements.

If you would like advice on how these changes may affect your organisation, or require assistance reviewing your Right to Work compliance procedures, contact Morgan Smith Immigration today.

With over 20 years of experience advising UK employers, our team can help your business remain compliant with Home Office requirements and prepare for the changes ahead.

Call 0203 959 3335 or email [email protected] to speak with our award-winning lawyers.