From 1st October 2026, Right to Work requirements are extending beyond employees to include certain workers and individual subcontractors. This means some businesses may need to carry out checks on people who are not directly employed but still provide services on their behalf.

For many employers, Right to Work checks have always been a straightforward part of recruitment. A new employee joins, their documents are checked, and records are retained.

The new rules mean employers may need to look beyond their payroll.

This isn’t a minor administrative update. It comes from Section 48 of the Border Security, Asylum and Immigration Act 2025, and it carries real financial consequences. Civil penalties for employing someone without the right to work can reach £60,000 per worker for a repeat breach, and up to five years’ imprisonment in the most serious cases.

Do you know who is working in your business?

Many SMEs rely on a mixture of employees, contractors and subcontractors. Over time, those arrangements can become informal, particularly in growing businesses.

You may engage a contractor who brings in additional support, use workers supplied by another business, or regularly engage self-employed individuals.

The changes are designed to ensure businesses know who is working on their behalf and that the appropriate Right to Work checks have been completed.

Most employers do not intentionally employ someone who does not have the right to work in the UK. Problems often arise because responsibilities are unclear or because businesses assume someone else has carried out the necessary checks.

Liability can travel further than you’d expect

One part of the new rules catches many founders off guard. If a subcontractor further down your supply chain doesn’t have the right to work, your business can be exposed too, even where you have no direct contract with that person.

In practice, this means the protection of “I didn’t employ them, my contractor did” is weakening. If you engage a contractor who in turn engages their own subcontractors, you may still carry some responsibility for checks happening properly at every level, not just the one closest to you.

This is most relevant if your business relies on layered subcontracting, whether in construction, professional services, hospitality, or any sector where work is regularly passed down a chain.

What should employers do now?

Before 1st October, consider reviewing:

  • Your Right to Work checking process
  • How workers and subcontractors are engaged
  • Supplier and subcontractor arrangements
  • Record-keeping procedures
  • Manager awareness and training

If your business engages subcontractors, make sure it is clear who is responsible for carrying out Right to Work checks and retaining records. Don’t assume that someone else in the supply chain has dealt with this. Where appropriate, seek confirmation that the necessary checks have been completed and keep evidence on file.

Ask yourself:

  • Do you know everyone carrying out work for your business?
  • Who is responsible for completing Right to Work checks?
  • Are records being retained correctly?
  • Do supplier and subcontractor agreements clearly set out compliance responsibilities?

Right to work: the bigger picture

The way businesses engage people has changed significantly in recent years. Many organisations now rely on a flexible workforce that extends beyond traditional employees.

The extension of Right to Work requirements reflects that reality.

Ultimately, this is not just about avoiding penalties. It is about understanding who is working for your business, managing risk effectively and ensuring your processes remain fit for purpose as your business grows.