Right to Work Changes to the Regime from 1st October 2026
Significant Changes to Right to Work Compliance
The Government has confirmed that significant changes to the UK’s legal strategy to combat illegal working will take effect on 1 October 2026. This represents, arguably, one of the most substantial reforms to right to work compliance since the civil penalty scheme was introduced.
What Has Been Amended?
Section 48 of the Border Security, Asylum and Immigration Act 2025 amends the Immigration, Asylum and Nationality Act 2006 by extending the existing right to work regime beyond traditional employment relationships.
Rather than creating a new framework, it broadens the scope of the existing civil penalty provisions to cover a wider range of working arrangements. This includes labour supply chains, workers, individual subcontractors and certain online matching services.
The Rules Take Effect from 1 October 2026
The Act received Royal Assent on 2 December 2025.
Subsequently, the Border Security, Asylum and Immigration Act 2025 (Commencement No. 4) Regulations 2026, made on 24 June 2026, confirms that section 48 will be brought into force on 1 October 2026.
The Home Office also published an updated draft Code of Practice on 30 June 2026 to support the implementation of the new rules.
Who Do the New Rules Extend To?
In addition to businesses that employ individuals under a contract of service, the new rules extend to businesses that:
- engage an individual under a worker’s contract;
- engage an individual sub-contractor; or
- operate as an online matching service providing the details of an individual who is a service provider to potential clients or customers.
Worker’s Contract
he definition of a “worker’s contract” under section 48 includes a contract, other than a contract of employment or apprenticeship, under which an individual agrees to carry out work or provide services personally for another person.
The test is the same as for statutory rights like the National Minimum Wage, paid holiday entitlement, and rights under the Agency Workers Regulations (AWR).
Individual Subcontractor
For the purposes of the new changes, an “individual subcontractor” is an individual who is contracted to provide work or services to a person who has itself contracted with an intermediary to provide or arrange those services.
Online Matching Service
An “online matching service” is a person or business that, as part of its activities, connects service providers with potential clients or customers.
This includes maintaining a register of service providers, providing an online service that allows potential clients or customers to submit enquiries to be matched with suitable service providers, and charging a fee or commission for making those matches.
How the Legislation Defines a Service Provider
The legislation also defined a “service provider” as a person who provides, or is seeking to provide, work or services in return for remuneration.
Has the Process for Conducting a Right to Work Check Changed?
No. While the scope of the right to work regime has expanded, the methods for establishing a statutory excuse against liability for a civil penalty remain unchanged.
To obtain a statutory excuse, businesses must complete a prescribed right to work check, as set out in the Employer’s Right to Work Guide, before the individual commences work.
In summary, this can be done by carrying out:
- a manual right to work check;
- an online right to work check using the Home Office online service;
- a right to work check through a certified Right to Work Digital Identity Service Provider; or
- if the circumstances allow for it, via the online Employer Checking Service.
Avoiding Discrimination
Alongside these changes, the Home Office has updated its draft Code of Practice on Avoiding Unlawful Discrimination applicable from 1 October 2026.
The guidance reinforces that right to work checks must be conducted consistently for all individuals, regardless of nationality or ethnicity.
Monitoring Developments and Practical Implications
While the statutory framework introduced by section 48 is clear, the practical application of some aspects of the guidance will need to be explored further.
As such, we are undertaking a detailed review of the Code alongside the legislation and will provide further updates to our clients as the position develops.
Consultations for Clients
We will also be offering consultations to clients to help assess whether the expanded regime applies to their specific workforce arrangements, contractual structures and right to work compliance processes.
Further details of these consultations will be announced in due course.
Speak to Chartergates About Right to Work Compliance
In the meantime, if you have any questions about how these changes may affect your business, please do not hesitate to contact your usual Chartergates consultant.
Disclaimer
Chartergate Legal Services Ltd has drafted this email update to provide you with a general overview of the relevant law and developments at the date of sending only. This email is provided as a general overview and should be taken as such. It is not a substitute for professional advice that is specific to your circumstances and should not be relied upon as such.
