The Right to Work regime is changing from 1 October 2026, bringing a wider range of working arrangements within the scope of immigration compliance requirements. Whilst Right to Work checks have traditionally focused on employees and apprentices, the Government is extending elements of the scheme to cover certain workers, individual subcontractors and some online matching service arrangements.
For businesses, this means now is the time to review how people are engaged, understand where responsibility sits and ensure existing onboarding processes remain fit for purpose. Whether you engage contractors, freelancers, consultants, agency workers or individuals through online platforms, it is important to understand how the changes may affect your organisation.
What Is Changing From 1 October 2026?
From 1 October 2026, changes introduced through the Border Security, Asylum and Immigration Act 2025 and related regulations will expand the application of the illegal working regime beyond traditional employment arrangements.
According to the Home Office’s draft Code of Practice, the updated scheme applies to:
- Employees;
- Apprentices;
- Individuals engaged under a worker’s contract;
- Certain individual subcontractors; and
- Certain online matching service arrangements.
The changes also introduce provisions relating to non-direct contractual arrangements and extended liability in certain circumstances.
Why Is the Government Expanding Right to Work Requirements?
The way businesses engage people has evolved considerably over recent years. Many organisations no longer rely solely on traditional employees and instead use a combination of workers, contractors, agency staff, outsourced service providers and digital platforms to meet operational needs.
The Government’s intention is to ensure immigration compliance requirements reflect modern working arrangements and reduce opportunities for illegal working within labour supply chains and non-traditional engagement models.
Self-Employed Workers and the Scope of the New Rules
One of the biggest misconceptions surrounding the October 2026 changes is that every self-employed individual will automatically require a Right to Work check.
That is not what the legislation says.
Whether an individual falls within scope depends on the nature of the arrangement and how it operates. Businesses should avoid making assumptions based solely on labels such as:
- Self-employed;
- Freelancer;
- Consultant;
- Contractor; or
- Subcontractor.
What matters is the legal and contractual relationship involved and whether the arrangement falls within the scope of the updated Right to Work framework.
How the New Rules Could Affect Gig Economy Businesses?
The Home Office draft Code specifically includes provisions covering certain online matching services.
These are platforms that connect individuals offering services with customers seeking those services.
Examples may include sectors such as:
- Delivery services
- Private hire and transport
- Home services
- Professional freelance platforms
- Temporary labour platforms
Importantly, not every gig economy arrangement will automatically fall within scope. Businesses operating platform-based models should review the final Home Office Right to Work guidance carefully and assess whether their existing compliance procedures remain suitable.
Tax Status and Immigration Compliance
Businesses should be careful not to confuse tax status with Right to Work requirements.
HMRC employment status guidance determines matters such as:
- PAYE;
- National Insurance;
- CIS obligations; and
- Employment status for tax purposes.
Right to Work requirements arise under separate immigration legislation and have their own prescribed checking procedures.
This means that documents such as a UTR, National Insurance number, CIS registration or company registration certificate do not replace a prescribed Right to Work check.
Who Is Responsible for Carrying Out Right to Work Checks?
Where a business directly engages an individual under a covered arrangement, responsibility will generally sit with the organisation engaging that person.
However, responsibility can become more complex where labour is supplied through:
- Recruitment agencies
- Labour providers
- Umbrella arrangements
- Outsourcing providers
- Online platforms
- Multi-tier subcontracting chains
Understanding who is responsible and ensuring that responsibility is clearly documented will be critical.
The Approved Right to Work Checking Methods
The Home Office recognises several prescribed methods for carrying out a Right to Work check.
Manual Document Check
An organisation reviews acceptable original documents and confirms they belong to the individual concerned.
Home Office Online Check
Individuals with eligible digital immigration status can provide a share code and date of birth, allowing their status to be verified through the official Home Office online service.
Digital Verification Service Provider (DVSP)
Where permitted, organisations may use a certified and registered Digital Verification Service Provider for digital identity verification. The 2026 regulations require registered providers where digital checks are undertaken.
Employer Checking Service
Where standard checks cannot be completed, employers may need to use the Home Office Employer Checking Service.
Extended Liability and Labour Supply Chains
One of the most significant developments within the updated Code is the introduction of provisions concerning extended liability for certain non-direct contractual arrangements.
Businesses that obtain labour through intermediaries or supply chains should understand:
- Who is engaging the individual;
- Who is responsible for carrying out checks;
- What contractual protections are in place;
- How records are retained; and
- How compliance can be evidenced if required.
For many organisations, reviewing supply-chain arrangements will be one of the most important preparation exercises ahead of October 2026.
Managing Worker Substitutions
The draft Code also addresses substitution arrangements in certain circumstances.
Where contractors or service providers can send substitute workers, businesses should ensure there are procedures in place to verify that any replacement individual has met the relevant Right to Work requirements before commencing work.
This is particularly important in construction, logistics, facilities management and other sectors where substitution arrangements are common.
Record Keeping Requirements
Carrying out the check itself is only part of the process.
To establish a statutory excuse against a civil penalty, businesses must retain evidence showing that the prescribed checking process has been followed correctly. The Home Office Code sets out record-keeping requirements and explains when follow-up checks may be necessary.
Records should be stored securely and access should be limited to authorised personnel.
Civil Penalties and Compliance Risks
The Home Office Code of Practice sets out the framework used when determining civil penalties for illegal working and explains how businesses can establish a statutory excuse by carrying out checks correctly.
Beyond financial penalties, non-compliance can result in:
- Operational disruption;
- Reputational damage;
- Increased scrutiny from regulators; and
- Additional compliance costs.
For most businesses, reviewing procedures now is far simpler than dealing with a compliance issue after the rules come into force.
Avoiding Discrimination During Right to Work Checks
The Home Office makes it clear that Right to Work checks must be carried out fairly and consistently.
Businesses should not make decisions based on a person’s:
- Nationality;
- Ethnic origin;
- Accent;
- Appearance; or
- Perceived immigration status.
Applying a consistent process helps organisations meet both their immigration compliance obligations and wider equality responsibilities.
Reviewing Existing Contractor Arrangements
Before October 2026, businesses should take the opportunity to review:
- Contractor agreements;
- Freelancer arrangements;
- Labour-supply contracts;
- Agency relationships;
- Platform-based engagement models; and
- Existing Right to Work records.
Identifying potential issues early will allow sufficient time to update procedures and contracts where necessary.
Preparing Your Business for October 2026
A practical preparation plan should include:
Review Your Workforce
Identify anyone engaged outside a traditional employment relationship.
Review Supplier Relationships
Understand how labour is sourced and who is responsible for compliance.
Review Contracts
Ensure responsibilities are clearly documented and understood.
Update Onboarding Procedures
Make sure appropriate checks are completed before work begins where required.
Train Relevant Teams
HR, payroll, recruitment, procurement and operational teams should understand the upcoming changes.
Review Record Keeping
Check that compliance records are retained appropriately and can be produced when needed.
How The Infinity Group Can Help
At The Infinity Group, compliance is at the heart of everything we do.
Our service extends far beyond processing payroll and calculating deductions. We help businesses manage their workforce obligations confidently, supporting compliance across payroll, tax and right to work requirements.
As part of our onboarding process, we carry out identity verification and Right to Work checks before individuals are paid, helping businesses reduce risk and maintain robust compliance procedures.
Whether you engage employees, contractors, subcontractors or freelance workers, our team can help you build processes that are both efficient and compliant.
Contact The Infinity Group today to discuss your payroll, workforce compliance and Right to Work requirements ahead of the October 2026 changes.