How Will the New UK Right to Work Rules Affect Contractors, Subcontractors and Labour-Only Supply Chains in 2026?
From 1 October 2026, the UK Government will significantly expand Right to Work obligations, creating new compliance responsibilities for businesses that engage workers through subcontracting, agency, labour-only, and other non-traditional working arrangements.
For many organisations—particularly those operating within construction, trades, and labour supply chains—these changes will require a review of existing onboarding, verification, and record-keeping processes.
What Is Changing to Right to Work Checks in October 2026?
Under the new legislation, Right to Work responsibilities will no longer apply solely to traditional PAYE employees.
The expanded rules are expected to cover individuals engaged through:
- Labour subcontracting arrangements
- Agency worker contracts
- Worker contracts
- Gig economy arrangements
- Personal service contracts
The changes are not expected to apply to genuinely self-employed individuals who operate their own businesses and contract directly with clients. Likewise, bona fide subcontractors engaged to complete a specific task or project using their own tools, materials, expertise, and supervision are generally outside the scope of these requirements.
These rules do apply to labour-only businesses who are providing sheer manpower. If a labour-only subcontractor supplies an illegal worker to your project, the direct provider is no longer responsible—the liability spreads up the contractual chain.
What Is Extended Liability in the Construction Supply Chain?
One of the most significant changes is the introduction of an extended liability framework.
Where a labour-only subcontractor supplies an individual who does not have the legal right to work in the UK, responsibility may no longer rest solely with the direct supplier. Liability can extend throughout the contractual chain, increasing the compliance burden for contractors, principal contractors, and businesses engaging labour providers.
This means organisations must have confidence that all parties within their supply chain are carrying out compliant Right to Work checks before workers arrive on site.
What Are the Penalties for Failing Right to Work Checks?
Failure to comply with Right to Work legislation can result in substantial financial penalties.
Current proposals indicate civil penalties of:
- Up to £45,000 per illegal worker for a first breach
- Up to £60,000 per illegal worker for repeat breaches
In addition to financial penalties, organisations may face reputational damage, contract disputes, project delays, and increased scrutiny from enforcement authorities.
Why Is the Construction Industry at Particular Risk?
The construction sector is expected to be one of the primary areas of focus under the new rules due to the widespread use of subcontractors and labour-only supply chains.
A UTR, National Insurance Number or CSCS Card Is Not Proof of Right to Work
Many businesses mistakenly assume that a worker's:
- UTR (Unique Taxpayer Reference)
- National Insurance Number
- CSCS Card
confirms their legal right to work in the UK.
These documents do not satisfy Home Office Right to Work requirements and should never be relied upon as evidence of immigration status.
The Hidden Risk of Substitute Workers
Another key area of concern is worker substitution.
Where a self-employed contractor sends another individual to site in their place, that substitute worker must undergo the appropriate Right to Work verification process before commencing work.
Allowing substitute workers onto site without proper checks could expose multiple businesses within the contractual chain to liability.
What Should Businesses Do Now?
1. Review Supplier and Subcontractor Agreements
Review all contracts with labour providers and subcontractors to ensure they:
- Require Home Office-compliant Right to Work checks before workers are supplied
- Cover substitute workers as well as original workers
- Grant audit rights to inspect compliance records
- Clearly define responsibilities for Right to Work verification
Construction businesses should also review any obligations being imposed by contractors further up the supply chain.
2. Strengthen Site Access and Onboarding Procedures
Site managers, gatekeepers, and onboarding teams should understand that standard health and safety checks do not meet Home Office requirements.
Implement robust identity verification procedures before work begins, including processes for checking any substitute workers supplied during a project.
3. Maintain Accurate Records
Businesses should retain evidence of Right to Work checks for:
- The entire duration of the worker's engagement
- Two years after the individual leaves the project or assignment
Clear contractual records and audit trails should also be maintained.
How Do You Check Someone's Right to Work Online?
For individuals who hold an eVisa or digital immigration status, employers should use the Home Office online Right to Work checking service.
The process involves:
- Asking the individual to generate a Right to Work share code through GOV.UK.
- Entering the share code and date of birth into the Home Office checking service.
- Reviewing the individual's online profile and any work restrictions.
- Confirming the photograph matches the individual presenting for work.
- Saving evidence of the completed check and retaining it for the required period.
It is important to note that screenshots, photocopies, or printed images supplied by the individual are not sufficient for eVisas or a digital immigration status. The check must be completed through the official Home Office system to establish a statutory excuse against a civil penalty.
Share codes are typically valid for 90 days and must be generated specifically for Right to Work purposes.
For official guidance, visit: Check a Job Applicant's Right to Work
How Can Omnia Help Manage Right to Work Compliance?
To support businesses with ongoing compliance, a Master Right to Work Tracker Template is available within our Omnia HR system.
The Omnia HR system can also:
- Record and manage Right to Work checks
- Add subcontractor users to the system
- Receive automated notifications before permissions expire
- Generate compliance reports
- Maintain a clear audit trail for workforce verification
Need Help Preparing for the October 2026 Right to Work Changes?
At SafeWise, we support employers with practical HR and compliance solutions designed to reduce risk and protect businesses from costly penalties. Our experienced HR advisors can help you:
- Review subcontractor and labour supplier agreements
- Audit your current Right to Work checking processes
- Help you develop compliant onboarding procedures for contractors and subcontractors
- Train managers and supervisors on their responsibilities
- Access practical templates, policies and compliance resources
- Receive ongoing HR and employment law support when issues arise
Whether you operate in construction, manufacturing, facilities management, logistics, engineering or another sector that relies on subcontractors, now is the time to ensure your processes are fit for purpose before the new rules take effect. SafeWise provides outsourced HR, Health & Safety and compliance support to businesses nationwide, helping employers stay compliant, protected and confident.
To discuss how we can support you with HR and H&S compliance, call us on 01922 279129.
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