Government responds to consultation on extending right to work regime
The Government has published a response to the views and evidence submitted as part of its consultation into extending the right to work scheme which is due to come into force on 1 October 2026 (through s.48 of the Border Security, Asylum and Immigration Act 2025). The consultation related to the Government’s proposals to extend the duty to prevent illegal working beyond standard employment arrangements.
It has also published an updated draft Code of Practice on preventing illegal working: Right to Work Scheme for employers (the “Code”).
The proposal is that from 1 October 2026 the right to work scheme will not just apply to traditional employment. The duties will extend to those engaging individuals as workers and individual sub-contractors, as well as arrangements where online matching services provide the details of an individual who is a service provider to potential clients or customers, and they enter into a contract. It could also apply where an employer employs an individual to provide work or services and they are permitted to substitute their work under the contract. In these situations, the person contracted to provide work or services to a third party, the online matching service or the employer in the case of substitution, may be treated as employing the individual who personally provides their work or services.
The idea is to further target high risk sectors such as hospitality, construction, logistics and the gig-economy.
Individuals who are genuinely self-employed, operating in business on their own account and who contract with clients or customers directly to provide services, will not be covered by the scheme.
In terms of civil penalty liability, the Home Office will first seek to identify the employer which has the direct employment relationship with the individual, but the Code confirms the extension of liability in certain circumstances. This might be where there are contracting chains, matching services and situations where substitution is permitted. In these situations, liability may extend beyond the immediate contractor where the direct contractor can’t be identified.
In light of this, businesses which are engaged in contractual supply chains should ensure that right to work checks are being carried out down the chain through contractual requirements, together with cooperation with the Home Office where required.
In response to concerns raised in the consultation, about costs, administration, unnecessary duplication and uncertainty, the Government acknowledges these and has confirmed that implementation will be proportionate and that the changes will be supported by detailed guidance, stakeholder engagement and appropriate implementation periods.
Ahead of the October implementation date, businesses should review their contractual arrangements to ensure compliance at each step, and ensure staff involved are aware of the requirements. This is of particular importance given that the maximum civil penalty is £60,000 for each individual who does not have the right to work in the UK.
The full outcome, Prevention of illegal working: Extending the Right to Work Scheme to other working arrangements: government response, can be found here.
If you have any questions in relation to this article or right to work checks in general, please contact Catherine Hope at [email protected]