The UK Government has now laid the legislation (30 June 2026) to expand the Right to Work (RTW) regime beyond traditional employment. The changes, expected to take effect from 1 October 2026, will extend RTW obligations and civil penalty exposure to a much wider range of labour arrangements, including contractors, agency workers and gig economy roles.
This represents a significant shift from an employment-based compliance model to a broader labour‑engagement framework, with implications across HR, procurement and operational functions.
The RTW regime will no longer be limited to employees. It will now apply to a broader population of individuals providing services, including subcontractors, agency workers, zero hours workers and those engaged through online or platform-based models.
For clients, this means that individuals engaged outside standard employment contracts may now require RTW checks, even where there is no direct employment relationship.
Liability aligned to the engager
The reforms shift the focus of responsibility away from a narrow concept of “employer” to the organisation that engages or benefits from the work. As a result, compliance obligations may arise in areas of the business that have not historically been within scope, particularly procurement-led or operational engagements.
Extension of civil penalties
Civil penalties for illegal working, currently up to £60,000 per worker, will apply across these wider arrangements. This significantly increases exposure for organisations that rely on flexible or indirect labour models.
Digital Right to Work checks
The legislation reinforces the move towards digital verification. Where digital checks are used, businesses will be required to use government-registered Digital Verification Service Providers (DVSPs).
This signals a continued shift towards a more standardised and technology-driven compliance environment, and clients should expect increasing reliance on digital processes.
Increased focus on discrimination risk
The draft Codes of Practice emphasise that RTW checks must be applied consistently across all individuals, regardless of nationality or background. As the regime expands to new categories of workers, businesses will need to ensure that onboarding processes do not create direct or indirect discrimination risks.
These changes represent a structural expansion of RTW compliance, rather than a simple update to existing processes.
While most organisations have established procedures for employees, many have limited visibility over non-employee populations, including contractors, agency workers and individuals engaged through third parties. These groups are likely to become the primary area of compliance risk under the new regime.
The impact will extend beyond HR teams, requiring closer coordination with procurement, legal and operational stakeholders, particularly where labour is sourced through complex supply chains.
In advance of the expected October 2026 implementation, businesses should begin to:
This reform confirms a clear shift in UK immigration compliance towards a “whole workforce” approach, where RTW obligations follow how work is delivered rather than how it is formally structured.
For most clients, the key risk will not arise in hiring employees, but in areas where individuals are engaged indirectly or outside established HR oversight. Early preparation and cross-functional alignment will be critical to manage compliance effectively ahead of implementation in October 2026.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Lyudmyla Davis
Partner
Sarah Ingles
Partner
Ian Robinson
Partner
Andrea Als
Director
Adam Sinfield
Director
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