Right to Work rules expand to subcontractors and online platforms

New Right to Work rules expanding liability to subcontractors and online service providers take effect on October 1, 2026. The expanded scheme now covers individual subcontractors and workers from online matching services, extending civil penalty liability through contractual chains.

The changes implement the concept of 'extended liability'. This allows penalties to move through the contractual chain beyond the direct employer if that employer cannot be identified or fails to comply. For businesses that are not direct employers, the Code prescribes specific contractual provisions, substitution controls, and identity verification processes to establish a statutory excuse against a fine.

Businesses may rely on a supplier's assurances about checks only if they have taken reasonable steps to verify those promises. A supplier’s promise needs a credible basis. The responsibility for conducting the prescribed checks rests with the employer that has the direct contractual relationship with the worker.

Who is affected and what you must check

Businesses using contractors via platforms like tutoring or tradesperson apps must verify right to work status. The rules cover individual service providers engaged on or after October 1, 2026. The guidance confirms the scheme does not apply to individuals operating an independent business under their own name or through their own company who contract directly with clients.

For online matching services, if an individual is engaged on or after October 1, 2026 under a contract with a right of substitution, prescribed substitution controls must be included. The rules do not apply when work is done outside the UK.

The Home Office states that hiring illegal workers undermines the UK’s immigration system and can expose workers to exploitation. It could also drive unfair competition and undermine a business's insurance.

Naomi Goldshtein, a partner at Fragomen, said: "This represents a major change for businesses built on flexibility, seasonal demand, contractors and last-minute shift cover, and the implications are significant."

Steps to take before October 2026

Businesses must act now. The first step is to conduct an audit to establish where they might be at risk of breaking the rules. This includes reviewing companies they work with that cannot confirm Right to Work checks. The Home Office provides a free online Right to Work checker.

If issues are found, businesses should negotiate amendments to existing contracts to ensure compliance. Future terms and procurement must be shaped by the new rules. HR, procurement, and operational managers need a shared understanding of how people enter the business. Managers need a clear route to get arrangements assessed before work begins.

Businesses should test their compliance processes. They must ask how managers would respond to a contractor sending a substitute. If a process depends on one colleague’s memory or personal inbox, it needs attention. Unclear checking arrangements can cause delays and uncertainty.

Employers choosing a prescribed digital check from October must use a service certified for right to work checks and listed on the statutory register. General identity certification is insufficient for a statutory excuse.

Fines and liability for non-compliance

Businesses in breach of the rules face severe financial penalties. The fines are structured as follows:

Liability can extend through contractual chains if checks are not properly managed. The Home Office's discrimination code requires consistent checking of applicants at the same recruitment stage. Fairness does not require everyone to produce the same document, but urgency must not lead to selective checking based on assumptions about nationality, name, or appearance.

Mandeep Khroud, head of immigration at Irwin Mitchell, said: "The Home Office has made clear that it will focus on the reality of working arrangements rather than the labels used in contracts."

The UK government published the primary legislation for this expansion in December 2025, with secondary legislation following in June 2026. Draft guidance was issued in July and updated in September 2026. The October changes aim to give businesses a better understanding of their workforce. Senior leaders must make this a shared operational priority.

A business should be able to explain who is carrying out its work, how they came to be there, and who is accountable for relevant checks. If it cannot, that gap is a management problem made more urgent by the new rules. Businesses should review their right to work compliance processes, contractual arrangements with labour providers, and identity verification procedures ahead of the expanded scheme's implementation.