The Government's planned expansion of Right to Work (RTW) requirements from 1 October 2026 is unlikely to surprise those who have been monitoring the recent immigration policy developments.
And whilst this draft guidance does not introduce an entirely new compliance framework, it does signal a significant shift in expectations around workforce oversight. The message is increasingly clear: employers are expected to understand not only those they employ directly, but also how labour is supplied throughout their wider business operations.
Why Right to Work compliance is no longer just an HR issue
Historically, organisations have tended to view Right to Work compliance as an obligation that sits squarely within HR and recruitment teams. This draft guidance suggests the Home Office is taking a broader view.
Particular focus is being given to organisations that engage workers through worker contracts, third-party suppliers, outsourced service providers, labour providers, specialist contractors, individual subcontractors and some online matching platforms.
The emerging expectation is that businesses should have sufficient visibility and governance to understand how workers are sourced and whether appropriate Right to Work checks and wider immigration compliance processes are operating throughout the labour supply chain.
This reflects a growing emphasis on what many employers may view as extended liability and places greater importance on supplier due diligence, contractor governance, workforce mapping and audit-ready immigration processes.
Right to Work changes mean you need to know how labour enters your organisation
Consider a technology business engaging specialist IT consultants through a third-party supplier to support a major systems implementation.
The consultants may not be directly employed by the organisation, and responsibility for onboarding may sit with the supplier; however, the draft guidance suggests employers should still understand how labour is being supplied and satisfy themselves that appropriate Right to Work processes are operating.
The implication is not necessarily that organisations are responsible for carrying out all checks themselves. Rather, businesses are expected to demonstrate appropriate oversight, clear contractual responsibilities and evidence that the correct Right to Work processes are being followed for the person actually carrying out the work.
For businesses operating complex contractor models or managing multiple suppliers, this may require a more structured approach to workforce compliance than has traditionally been the case.
Don't assume Right to Work compliance sits with someone else
One of the most significant messages emerging from the draft guidance is that employers should avoid relying solely on assurances from recruitment agencies, labour providers, or outsourced service partners.
As enforcement activity continues to increase, organisations may need to demonstrate that they have taken reasonable steps to understand workforce composition, assess compliance risks and monitor arrangements throughout the supply chain.
This is particularly relevant in sectors that rely heavily on contingent labour, project-based contractors, subcontracting chains, outsourced service delivery models or gig and platform-based working arrangements, where visibility can often be fragmented across multiple providers.
The challenge for employers is balancing operational flexibility with effective compliance governance.
The cost of Right to Work compliance wrong
For organisations holding sponsor licences, or those employing overseas nationals more generally, the consequences of non-compliance remain significant.
Failure to meet Right to Work or sponsorship obligations may result in:
Civil penalties of up to £60,000 per illegal worker
Up to five years' imprisonment and an unlimited fine for knowingly employing a person without the right to work
Business closure and court-issued compliance orders
Director disqualification
Sponsor licence suspension or revocation
Seizure of profits linked to illegal working
Against a backdrop of increasing Home Office scrutiny, organisations should ensure Right to Work checking processes, record keeping arrangements, sponsor licence compliance and Home Office audit preparation procedures remain accurate, consistent, and auditable.
Preparing for October 2026 Right to Work changes
For many employers, the forthcoming changes provide an opportunity to take a broader view of immigration compliance and workforce planning.
Rather than treating the changes as a standalone Right to Work exercise, organisations may benefit from reviewing:
Workforce structures and labour supply arrangements, including contractor, subcontractor and contingent workforce models
Supplier and contractor due diligence procedures
Responsibility for checks across worker contracts, online matching platforms and outsourced delivery models
Sponsor licence governance frameworks
Record-keeping, Home Office audit preparation and evidence-retention processes
Right to Work policies and training programmes
Future international recruitment requirements
Those organisations that act early are likely to be better positioned to demonstrate compliance and respond confidently to increased regulatory scrutiny.
How our immigration specialists can help you prepare for Right to Work changes
With immigration compliance continuing to evolve, many businesses are using this period to review existing frameworks and strengthen governance arrangements before the October 2026 changes take effect.
Our Immigration team supports organisations across a broad range of sectors with:
Sponsor licence management
Sponsor compliance health checks and mock audits
Annual Sponsor Management System (SMS) reviews
SMS compliance training for HR teams and key personnel
Right to Work compliance reviews, contractor compliance reviews and workforce audits
By reviewing compliance frameworks now, employers can reduce risk, strengthen governance, and ensure they are prepared for the evolving expectations of the Home Office.
Get in touch with our immigration specialists today
Right to Work checks must be carried out by employers to confirm that an individual has the legal right to work in the UK before they start employment. These checks usually involve reviewing approved identity and immigration documents, using an online Home Office check where required, and keeping clear records to evidence compliance.
What are the proposed Right to Work changes coming in October 2026?
From 1 October 2026, the Government plans to expand Right to Work requirements so that employers have greater visibility over how labour enters their organisation, including through worker contracts, certain subcontracting arrangements and some online matching platforms.
Do employers need to carry out Right to Work checks on contractors?
Employers may not always be responsible for carrying out checks directly, but they should be able to demonstrate appropriate oversight of contractor and supplier arrangements. This includes understanding who is performing the work, how they have been engaged and whether clear processes are in place to manage Right to Work compliance.
Why is labour supply chain visibility important for Right to Work compliance?
Labour supply chains can involve recruitment agencies, outsourced providers, subcontractors, consultants and platform-based workers. Without clear visibility over these arrangements, employers may find it harder to evidence that appropriate Right to Work checks and immigration compliance controls are operating across their wider workforce.
What are the risks of getting Right to Work compliance wrong?
Failure to comply with Right to Work requirements can lead to civil penalties, criminal sanctions, business disruption, reputational damage and sponsor licence action. For sponsor licence holders, poor compliance can also affect the ability to recruit and retain overseas talent.
How should businesses prepare for the Right to Work changes?
Employers should review their workforce structures, contractor and supplier arrangements, existing Right to Work processes, sponsor licence governance, record keeping and training. Acting early can help organisations identify gaps and strengthen compliance before the October 2026 changes take effect.
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