Right to Work Checks: Myth-busting the new rules
16th September, 2026
The UK's Right to Work ("RTW") regime is about to see the most significant changes in 20 years.
Draft Home Office guidance published in July 2026 (updated in September 2026) outlines an expansion of the Right to Work Scheme which means that more individuals will be in scope for RTW checks. It also introduces “extended liability” provisions in some contractual arrangements. This means that businesses might be legally responsible for illegal working elsewhere in the supply chain. These changes come into force on 1 October 2026.
In this article, we separate fact from fiction and explain what organisations need to know before the new rules take effect.
Myth 1: “These changes only affect organisations that sponsor workers or employ overseas nationals”
Reality: False.
This is probably the most common misconception we have encountered.
Many organisations assume the proposed reforms are simply another set of immigration rules aimed at sponsor licence holders or for businesses employing non-UK nationals. In reality, these changes impact all businesses, regardless of whether or not they hold a sponsor licence.
Under the new scheme all businesses must check that all prospective workers have the right to work for them.
The changes expand the Right to Work Scheme beyond traditional employment relationships. The changes bring a wider range of working arrangements into scope, including worker contracts, individual subcontractors and certain online matching services.
The changes also introduce circumstances where liability for illegal working may extend beyond the organisation with the direct contractual relationship with the individual carrying out the work to other businesses in the supply chain.
As a result, organisations with no sponsor licence, no sponsored workers and no international recruitment may still be affected.
If your organisation engages workers, contractors, temporary labour, outsourced service providers or subcontractors, now is the time to understand how the reforms impact your business.
Myth 2: “I only employ British nationals, so this doesn’t affect me”
Reality: False.
The existing RTW regime already applies to British citizens and non-British citizens alike.
The draft guidance specifically reminds employers that right to work checks should be carried out consistently and that assumptions should not be made based on an individual’s nationality, ethnicity, accent, appearance or perceived immigration status.
This is important not only to comply with immigration law requirements but also to avoid unlawful discrimination. Employers who selectively carry out checks, or who treat individuals differently because they appear to be non-British, could expose themselves to discrimination claims.
Myth 3: “Our agency contract says they carry out RTW checks, so we’re covered”
Reality: Not necessarily.
Historically, many organisations have taken comfort from a clause stating that the agency or supplier is responsible for RTW checks. Under the proposed reforms, that may no longer be enough.
To establish a statutory excuse against extended liability, the draft guidance envisages specific prescribed contractual provisions covering matters such as RTW obligations, restrictions on subcontracting, audit rights, cooperation with investigations and enforcement mechanisms. The guidance also requires specific identity verification requirements to be implemented in practice.
The vast majority of labour supply, outsourcing and agency agreements will not have been drafted with the specific new requirements in mind and are unlikely to provide the level of protection organisations assume they do. Many organisations will not be undertaking the operational identity checks needed to ensure compliance.
Now is the time to review contracts to ensure they are fit for purpose ahead of 1 October 2026.
Myth 4: “We need to carry out retrospective RTW checks on everyone”
Reality: Generally false.
The draft guidance does not impose a blanket requirement to retrospectively check the existing workforce. The Guidance is clear that the new rules apply to arrangements only where the employment/working relationship or contractual arrangements were entered into on or after 1 October 2026.
However, organisations should not be complacent. There may still be grey areas, especially where there are:
- Umbrella company arrangements
- New or renewed statements of work
- Extensions or variations to existing contracts
- New subcontracting arrangements
- Changes to labour supply chains
The key focus should be on future compliance and future contractual arrangements, rather than carrying out wholesale retrospective checks.
Myth 5: “Every business-to-business contract will be caught by the new rules”
Reality: False.
One of the biggest concerns we hear is that every service contract will suddenly fall within the new regime.
The draft guidance makes clear that this is not the case.
Not every business purchasing services from another business will fall within the extended liability provisions. The guidance includes examples of arrangements that are likely to be in scope, and others that are not. Generally speaking where a business is purchasing work or services for its own operational needs the extended liability provisions are unlikely to apply. However, the guidance is also clear that the examples are not exhaustive and each case will be judged on its facts.
The challenge for organisations is determining which arrangements potentially give rise to extended liability. Understanding whether an arrangement is genuinely a business-to-business service relationship or forms part of a contractual chain for the provision of work or services will be critical.
Myth 6: “I only need to think about the people I contract with directly”
Reality: False.
This is one of the most significant changes proposed by the reforms.
The draft guidance introduces circumstances in which liability may arise beyond the organisation that directly engages the worker.
One of the examples in the Guidance relates to a construction company who subcontracts elements of building new homes to sub-contractors. The construction company could be liable for illegal working lower down the supply chain at the subcontractor level.
Other examples within the guidance of where extended liability might apply include logistics supply chains and online matching platforms.
Organisations will increasingly need visibility of who is actually carrying out the work throughout the supply chain, not simply who they contract with directly.
Myth 7: “An IDSP or DVSP can do everything for me”
Reality: False.
Identity Service Providers (“IDSPs”) and Right to Work Digital Verification Service Providers (“DVSPs”) can be valuable compliance tools, particularly given the increased focus on identity verification and imposter prevention.
However, the draft guidance is clear that responsibility for RTW checks remains with the employer or organisation seeking to establish the statutory excuse.
Technology can support compliance, but does not transfer legal responsibility.
Myth 8: “We have to use an IDSP or DVSP to comply with the new rules”
Reality: False.
The proposed reforms do not make digital verification providers mandatory.
Employers may continue to use the prescribed checking methods recognised by the Home Office, including manual checks and online checks where appropriate.
Whilst many organisations may decide to use digital verification solutions because of the increased focus on identity verification and auditability, these services are a compliance option and not a legal requirement.
Myth 9: “Substitute workers are somebody else’s problem”
Reality: False.
Substitution arrangements receive significant attention within the draft guidance.
Where substitution is permitted, organisations may need processes to ensure that substitute workers are properly checked before carrying out work and that identity verification measures are in place to confirm the individual undertaking the work is the same individual whose RTW has been verified. Contracts will also need to include specific provisions that address RTW issues where substitution is permitted.
For organisations that use substitute workers, reviewing these arrangements should be a priority ahead of implementation.
Myth 10: “This is just a recruitment or HR issue”
Reality: False.
Many organisations currently view RTW checks as a recruitment or onboarding issue.
However, the proposed changes have implications far beyond HR. They touch on procurement, outsourcing, supplier management, contract drafting, compliance auditing, workforce mapping and supply chain governance.
Preparing for the reforms is therefore likely to require input from HR, procurement, legal, commercial and operational teams. Businesses will need to ensure all of the relevant stakeholders understand the new requirements and the legal responsibilities associated with them.
What should organisations be doing now?
These reforms take effect on 1 October 2026.
Key actions include:
- mapping labour supply chains and workforce arrangements
- identifying where extended liability could arise
- reviewing agency, outsourcing and subcontracting agreements
- assessing substitution arrangements
- reviewing identity verification measures
- training HR, procurement and contract management teams
- auditing existing RTW processes
- putting in place appropriate contractual protections
Ward Hadaway Right to Work Compliance Toolkit
We have prepared a right to work compliance toolkit to help businesses navigate these changes. The aim is to help organisations understand where risk arises, implement practical controls and prepare for the new regime.
Our toolkit includes a workforce mapping template tool to help identify where the expanded checks and extended liability apply and template documents to support businesses with putting in place the required checks and contractual arrangements. Using the toolkit will ensure businesses have addressed the risks they have identified and allow them to evidence that they have complied with the new Home Office requirements.
Need advice?
If you would like to discuss the proposed reforms, review your workforce arrangements, assess contractual risk or learn more about our Right to Work Compliance Toolkit, please get in touch with Laura Darnley or complete the form below and a member of our immigration team will be in touch.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
This page may contain links that direct you to third party websites. We have no control over and are not responsible for the content, use by you or availability of those third party websites, for any products or services you buy through those sites or for the treatment of any personal information you provide to the third party.
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