Right to Work Scheme Expansion: What Employers Need to Know About Non-Employee Labour

The UK's Right to Work Scheme is being expanded beyond conventional employment relationships to cover additional types of work.

The Border Security, Asylum and Immigration Act 2025 provides for Right to Work requirements to extend to businesses engaging people through arrangements commonly found in the gig economy, construction, logistics, warehousing and other sectors using flexible labour.

The Home Office confirmed its final policy position following consultation in June 2026 and is developing the guidance and statutory framework needed to implement the changes.

For businesses that use contractors, freelancers, platform workers or other non-standard labour, this represents a significant change.

However, as of 14 August 2026, employers should not treat a specific commencement date as settled unless confirmed through the final Home Office implementation material. The government has said businesses will be given sufficient time to adapt before the new requirements come into force.

What Is Changing?

The existing statutory Right to Work Scheme principally requires employers to carry out prescribed checks before employing somebody under a contract of employment, service or apprenticeship.

Current Home Office guidance expressly states that where an individual is not a direct employee, such as somebody genuinely self-employed, there is not presently the same statutory requirement to establish a Right to Work statutory excuse.

The forthcoming expansion is intended to close that gap.

The government has confirmed that Right to Work requirements will extend to additional working arrangements used across sectors such as:

• Construction
• Food delivery
• Courier services
• Warehousing
• Beauty services
• Other parts of the gig economy
• Businesses relying on flexible or non-standard labour

The objective is to make it more difficult for organisations to avoid illegal-working controls simply by engaging somebody outside a conventional employment contract.

Which Workers Could Be Affected?

The expanded framework is intended to capture a broader range of working relationships.

Depending on the final statutory definitions and guidance, relevant arrangements may include:

• Individuals working outside conventional employee contracts
• Individual subcontractors
• Self-employed or freelance workers falling within the new statutory scope
• Gig-economy workers
• Individuals engaged through certain online matching or platform arrangements
• Other flexible labour relationships covered by the legislation

The precise contractual label used by a business will not necessarily determine whether the new requirements apply.

Government consultation responses highlighted the complexity of arrangements involving agencies, umbrella companies, subcontractors, franchisees and labour providers. The Home Office has said updated guidance will clarify where responsibility for completing checks rests in these circumstances.

Businesses should therefore avoid assuming that every contractor is automatically in scope or, conversely, that describing someone as self-employed automatically removes the obligation.

Why Is the Right to Work Scheme Being Expanded?

Right to Work checks are intended to prevent businesses from providing work to people who are not legally permitted to undertake it.

For conventional employees, employers have long been required to complete an appropriate prescribed check before employment begins.

The government considers that changes in the labour market have created gaps where people may undertake substantial work through contracting, platform or gig-economy arrangements without falling within the traditional employment framework.

The extension is designed to create greater consistency between different ways of obtaining labour.

The Home Office says this should create a more level playing field for businesses that already take steps to prevent illegal working and reduce opportunities for non-compliant operators to exploit individuals who do not have permission to work.

What Is a Right to Work Check?

A Right to Work check establishes whether an individual is legally permitted to perform the work being offered.

Depending on the individual's status and documentation, current prescribed routes include:

• A Home Office online Right to Work check
• An appropriate manual document check
• Digital verification for eligible British and Irish citizens
• The Employer Checking Service in specified circumstances

Where an employer completes the prescribed process correctly, it can establish a statutory excuse against liability for a civil penalty if the individual is later found to be working illegally.

For a detailed explanation of the existing system, see our guide to What Is a Right to Work Check?

Will Businesses Have to Use Digital Verification Providers?

Digital verification is already one method available for eligible British and Irish passport holders.

The government has also recognised that digital systems may help organisations manage the increased volume of checks created by the expanded scheme.

However, current Home Office material does not establish a blanket requirement for every affected business to use a Digital Verification Service Provider.

The government's June 2026 response says it will explore digital solutions as a way to streamline checking, reduce administrative burden and improve consistency. It also makes clear that responsibility may remain across different internal teams or trusted third-party providers, depending on the process used.

Businesses should therefore select the appropriate checking route according to the final Home Office requirements rather than assuming one technology will be mandatory for every worker.

Who Will Be Responsible for the Check?

This is one of the most important issues for businesses using complex labour arrangements.

A worker may potentially interact with:

• An end client
• Recruitment agency
• Labour provider
• Umbrella company
• Subcontractor
• Platform operator
• Franchisee
• Other intermediary

That does not mean every organisation in the chain will automatically have identical liability.

Consultation respondents specifically raised concerns about unclear responsibility and unnecessary duplication. The Home Office has said the statutory codes and guidance will clarify where responsibility for conducting the Right to Work check rests across different business models and supply chains.

Businesses should therefore map their labour arrangements now but avoid making unsupported assumptions about blanket joint liability.

What Are the Penalties for Illegal Working?

Under the existing scheme, an employer that employs somebody illegally without having established the appropriate statutory excuse can face substantial financial penalties.

Current civil penalties can reach:

• £45,000 per illegal worker for a first breach
• £60,000 per illegal worker for a repeat breach

The actual penalty depends on the circumstances and the employer's compliance history.

More serious cases can also result in criminal sanctions where an employer knew, or had reasonable cause to believe, that somebody was working illegally.

Businesses should not interpret the £60,000 figure as an automatic fine for every procedural mistake.

The key issue is whether illegal working has occurred and whether the organisation can demonstrate the required statutory protection under the applicable scheme.

How Should Businesses Prepare?

Organisations that rely significantly on contractors, flexible labour or platform workers should begin reviewing their arrangements before the expanded rules come into force.

1. Map your workforce

Identify how people currently provide work to the organisation.

Separate:

• Employees
• Agency workers
• Individual subcontractors
• Freelancers
• Self-employed contractors
• Zero-hours personnel
• Platform or gig workers

This provides a starting point for determining which relationships may fall within the expanded scheme.

2. Identify who engages each worker

Establish which legal entity contracts with or engages the individual.

In more complex structures, record the involvement of:

• Recruitment agencies
• Labour providers
• Umbrella companies
• Subcontractors
• Platform operators

This will make it easier to apply the final Home Office guidance on responsibility.

3. Review existing onboarding

Many organisations already voluntarily conduct Right to Work checks across a broader workforce.

The Home Office consultation found that a significant proportion of respondents already checked employees and other categories of workers.

Businesses should review whether current processes are:

• Consistent
• Appropriately documented
• Scalable
• Capable of handling follow-up checks
• Clear about responsibility
• Suitable for remote onboarding

4. Review contracts and supplier arrangements

Where third parties supply labour, contracts should make clear:

• Who conducts the check
• What evidence must be retained
• How relevant information is shared
• How changes in immigration status are handled
• Who is responsible for follow-up action

Contractual wording should reflect the actual statutory responsibilities once final guidance is in force.

A contract cannot simply transfer away a legal obligation that legislation places directly on a particular business.

5. Consider data protection

Expanding checks to more categories of workers will also increase the amount of identity and immigration information businesses handle.

The Home Office has acknowledged data-protection concerns raised during consultation and says employers will be expected to retain information only as prescribed by the relevant guidance and statutory codes.

Organisations should therefore review:

• Access controls
• Data retention
• Secure document storage
• Information sharing with suppliers
• Privacy notices
• Candidate and worker communications

6. Train HR, procurement and operational teams

These changes will not necessarily sit solely with HR.

Procurement teams, site managers, operations staff and those appointing contractors may also need to understand when a Right to Work check is required.

Training should explain:

• Which workers are in scope
• When checks must happen
• Which checking route should be used
• Who is responsible
• How records should be retained
• When follow-up checks may be needed

7. Monitor final Home Office implementation guidance

This is particularly important.

The government has confirmed the policy direction, but its June 2026 response also says businesses will receive further guidance, clarification of definitions and appropriate implementation time before the new requirements come into force.

Employers should therefore avoid building procedures around an unconfirmed deadline or an interpretation of the legislation that may be modified by final operational guidance.

What About Supply Chains?

The expansion has particular implications for sectors that rely on multi-layer labour models.

Examples include:

• Construction
• Logistics
• Warehousing
• Facilities management
• Hospitality
• Delivery platforms
• Seasonal work

Businesses should understand who is actually supplying and engaging each individual.

However, they should not assume that they must automatically repeat every Right to Work check performed elsewhere in the chain.

The government has recognised that duplication could create significant cost and administrative burden and has said the final framework will clarify responsibility across supply chains.

The objective should be clear accountability, not unnecessary duplicate checking.

Right to Work Checks and Online Platforms

The government's reforms are particularly relevant to business models where online systems connect individuals with customers or work opportunities.

Traditional employment law labels do not always fit these arrangements neatly.

The Home Office has specifically identified gig-economy working as an area where the existing scheme needs to adapt, and its consultation examined organisations that match service providers with customers.

Platform operators should therefore review:

• How workers are onboarded
• Who has the contractual relationship
• How identity is verified
• Whether immigration restrictions affect the services provided
• How Right to Work evidence could be recorded
• How repeat or follow-up checks could be managed

How Conflict International Can Support Right to Work Screening

Conflict International provides specialist ID Verification & Right to Work Checks for organisations managing individual and higher-volume screening requirements.

Our service can support structured identity and Right to Work workflows, including digital candidate onboarding and coordination with wider background screening.

As the statutory scheme expands, organisations using flexible or contracted labour may need to adapt existing onboarding processes to accommodate workers who previously sat outside traditional employee screening.

Conflict International can support the verification workflow, but the business remains responsible for understanding which statutory obligations apply to its particular working arrangements and for ensuring the appropriate prescribed check is completed.

Preparing for the Expanded Right to Work Scheme

The extension of the Right to Work Scheme is a significant change for businesses that depend on contractors, gig workers and other forms of flexible labour.

The policy direction is confirmed.

The detailed implementation arrangements, responsibilities and timing must still be followed through the final Home Office framework.

Businesses should therefore use the period before commencement to map their workforce, clarify supplier relationships, assess onboarding processes and prepare for additional checks without treating unconfirmed dates or requirements as settled law.

Complete the enquiry form below to discuss your ID Verification & Right to Work requirements or how higher-volume screening can be managed through our vetting portal.