UK Right to Work Rules Have Expanded: What Employers Need to Review Across Their Workforce
Overview
As of 1 October 2026, the UK's expanded Right to Work (RTW) Scheme is in effect, bringing additional workforce and contractual arrangements within the scope of the scheme and introducing new considerations for businesses using contractors, subcontractors, and third-party workforce providers.
Alongside the implementation of the expanded scheme, the UK Home Office published its final Code of Practice on Illegal Working and updated employer guidance. The business responsible for the prescribed Right to Work check remains responsible for carrying out that check. However, the expanded framework introduces extended liability in certain contractual arrangements, meaning other businesses in the contractual chain may also need to meet prescribed requirements to establish a statutory excuse.
For global organisations, multinational employers, and businesses managing workforce deployments between India, the UK, and other international jurisdictions, this expansion highlights the need for clear oversight of workforce structures, contractual agreements, and verification procedures.
What Are the Key Changes?
The updated Code of Practice and employer guidance introduce several critical elements to how Right to Work compliance is assessed and managed across the UK:
Expanded Scope of In-Scope Working Arrangements: The scheme now explicitly extends beyond traditional direct employment (contracts of service or apprenticeships) to include workers under a worker's contract, individual subcontractors, and certain online matching services that introduce individual service providers for a fee or commission.
Extended Liability in Certain Contractual Arrangements: While the business responsible for conducting prescribed checks retains primary responsibility, the framework allows civil penalties to be applied to upstream businesses in certain contractual arrangements if the direct employer cannot be identified or fails to comply. Businesses further up the chain can protect themselves by establishing a statutory excuse through prescribed contractual and operational safeguards.
Prescribed Contractual and Operational Requirements: To establish a statutory excuse where extended liability may apply, businesses must demonstrate that their commercial agreements and operational processes meet specific Home Office standards. These include documented obligations requiring the relevant employer to conduct checks, controls over onward subcontracting, audit rights, and procedures for addressing non-compliance.
Optional Outsourced Facial Verification via Registered Providers: Employers and businesses now have the option to outsource the identity verification and impersonation check element of Right to Work verifications to an eligible Right to Work Digital Verification Service Provider (RtW DVSP). Where an organisation chooses this route, the DVSP must be registered on the UK's Office for Digital Identities and Attributes (OfDIA) register.
Who Will Be Affected?
The expanded scheme applies to organisations operating in or deploying talent to the UK, particularly those using flexible, multi-tiered, or third-party workforce models:
Businesses Engaging Third-Party Contractors and Subcontractors: Companies that rely on intermediate suppliers or vendor delivery models must evaluate whether their current commercial terms meet the prescribed standards for extended liability protection.
Staffing and Recruitment Organisations: Agencies supplying temporary workers, contractors, or specialist talent to UK clients should ensure that Right to Work responsibilities are clearly allocated and that the relevant checks and contractual controls are in place across applicable workforce arrangements.
Online Talent Platforms and Matching Services: Marketplaces that connect individual contractors with UK businesses need to assess whether their operating model falls within the expanded definition of an online matching service.
Multinational Organisations with UK Operations: Companies deploying international personnel to UK entities or engaging cross-border delivery teams must ensure their UK entities and commercial partners maintain documented compliance processes.
Exclusions
Genuinely self-employed individuals operating independent businesses may remain outside the scope where the arrangement is genuinely a business-to-business provision of services rather than an engagement of an individual to perform work personally.
Operational Implications for Employers
Rather than viewing the expanded scheme solely through a regulatory lens, organisations can use this update to strengthen workforce governance and operational resilience:
Standardised Contractual Frameworks: The Code outlines clear contractual provisions such as mandatory verification clauses, audit rights, and subcontracting controls giving procurement and legal teams a structured framework for reviewing supplier agreements.
Greater Supply Chain Transparency: Implementing structured verification processes across suppliers helps businesses mitigate regulatory risk and gain clear visibility into the personnel performing work across their operations.
Integration of Digital Verification Tools: The option to use an OfDIA-registered RtW DVSP gives organisations another route for completing eligible digital identity verification as part of the Right to Work process.
Defined Pathways to Statutory Excuse: By following the prescribed requirements set out in the Home Office guidance, businesses in extended contractual chains have a defined, legally recognised mechanism to protect their organisation from civil penalties.
Salary Threshold
The expanded Right to Work Scheme does not introduce a new salary threshold. However, employers managing UK immigration should distinguish Right to Work requirements from the salary criteria attached to individual immigration routes.
When deploying or hiring international talent under sponsored visa routes, employers must ensure roles meet the applicable Home Office minimum salary requirements:
Skilled Worker Route: The standard general salary threshold is £41,700 per year, or the applicable occupation-specific going rate, whichever is higher, subject to relevant exceptions.
Global Business Mobility (Senior or Specialist Worker): The general salary requirement is £52,500 per year, or the going rate for the occupation, whichever is higher.
New Entrants: Eligible individuals qualifying under the new entrant criteria under the Skilled Worker route face a discounted threshold of £33,400 per year, or 70% of the standard going rate, whichever is higher.
These salary thresholds govern visa eligibility and sponsorship compliance, whereas Right to Work checks verify that an individual holds valid permission to undertake the specific work in question. Employers should assess both immigration permission and Right to Work compliance when planning UK workforce deployments.
Compliance Updates
Businesses should review key enforcement standards, penalty structures, and operational controls to ensure ongoing compliance:
Civil Penalty Regime
The Home Office civil penalty regime for illegal working carries substantial financial consequences:
Up to £45,000 per illegal worker for a first breach.
Up to £60,000 per illegal worker for repeat breaches within a three-year period.
Penalties are assessed subject to statutory rules, formal calculation frameworks, and any mitigating factors demonstrated by the business.
Contractual Safeguards
Where businesses engage labour through third parties, establishing a statutory excuse under extended liability requires written contractual terms that include:
Documented obligations requiring the direct employer to perform prescribed Right to Work checks.
Defined controls or restrictions regarding onward subcontracting.
Clear audit, inspection, or monitoring rights.
Explicit provisions permitting suspension or termination if non-compliance is identified.
Commitments to cooperate with relevant Home Office inquiries.
Substitution Controls
Where contractual arrangements permit a worker to provide a substitute, businesses must maintain adequate operational controls:
Ensuring Right to Work verification is completed for any substitute before they begin work.
Maintaining policies that prevent unverified substitutes from commencing engagements.
Retaining rights to pause or terminate arrangements if verification requirements are not fulfilled.
Digital Identity Verification Standards
Employers choosing to utilize digital identity verification for eligible checks must ensure the third-party provider is registered on the UK Government's Office for Digital Identities and Attributes (OfDIA) register. The use of a DVSP is optional, and standard manual or Home Office online checking processes remain fully valid when conducted in accordance with prescribed guidance.
What This Means for Employers
For organisations operating in or deploying personnel to the UK, the expanded framework requires a practical, cross-functional review:
Direct Responsibility Remains Primary: The business responsible for the prescribed Right to Work check must continue to carry out the required check before work commences.
Contractual Review Is Essential: For businesses using intermediate workforce providers, generic compliance language in service agreements should be updated to incorporate the Home Office's prescribed terms.
Subcontractor Visibility Matters: Organisations must have visibility over their labour supply arrangements to identify where extended liability rules could apply.
Consistency Across HR and Procurement: Right to Work compliance is no longer solely an HR onboarding function; procurement, vendor management, and legal teams must coordinate to ensure standard supplier terms reflect the updated guidance.
Implementation and Next Steps
To ensure operational readiness under the expanded scheme, organisations should undertake a structured review:
Map the Workforce: Identify all categories of individuals performing services across your organisation, including employees, workers under worker contracts, individual subcontractors, and platform-engaged talent.
Review Contractual Structures: Identify where personnel are supplied through third-party intermediaries, staffing partners, or service providers, and assess whether extended liability provisions apply to those arrangements.
Update Contractual Protections: Ensure supplier agreements, Master Service Agreements (MSAs), and Statements of Work (SOWs) contain the prescribed provisions regarding Right to Work checks, onward subcontracting controls, audit rights, and Home Office cooperation.
Strengthen Substitution Protocols: Where contracts allow worker substitution, verify that operational controls prevent any substitute from commencing work before their Right to Work has been formally checked and documented.
Review Verification Systems: Confirm that existing manual checks, Home Office online checks, or optional RtW DVSP digital verifications adhere strictly to the updated Employer's Guide.
Align Internal Ownership: Ensure that Human Resources, Talent Acquisition, Global Mobility, Legal, Procurement, and operational hiring managers understand their respective roles in maintaining Right to Work compliance.
Key Takeaway
The expansion of the UK Right to Work Scheme reinforces the importance of governance across all workforce engagement models. While the direct employer retains primary responsibility for carrying out checks, businesses operating with contractors, subcontractors, and extended supply chains must ensure appropriate contractual terms and operational controls are in place to manage extended liability risks.
Proactive organisations that review their workforce structures, align their commercial agreements, and strengthen verification procedures will be better positioned to manage their Right to Work obligations and reduce compliance risk while maintaining workforce continuity.
This article is intended for informational purposes only and does not constitute legal or immigration advice. Immigration requirements and applicability may vary depending on permit category, local regulations, and individual case circumstances. For tailored guidance specific to your organisation’s needs, please reach out to Anywr’s immigration experts for a consultation.
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About Anywr
Anywr is a French international group specializing in global mobility solutions.
Founded in 2012, Anywr operates in 12 countries across 4 continents. Our mission is to support companies in addressing their Human Resources challenges. We respond to your needs in terms of international mobility, particularly in terms of immigration policies, relocation, the implementation of mobility policies and EOR.
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