Right to Work Checks Now Reach Contractors and Subcontractors

What changed on 1 October 2026, and what recruitment and construction businesses need to do.

What has changed?

From 1 October 2026, right to work checks and civil penalty liability extend beyond traditional employees. The Home Office has issued updated employer guidance, and the rules now cover:

• Workers engaged under a worker’s contract, including agency workers

• Individual subcontractors

• Online matching and platform arrangements

Who is in scope?

Genuinely independent businesses are not. The Home Office example is a plumber running their own business and working for several customers.

Individuals who get work through an intermediary, without running an independent business in their own right, remain in scope. For construction, treat labour-only operatives, agency labour and anyone engaged to work personally under your name as likely in scope until you have assessed them.

 

What is extended liability?

Liability can now travel up the contracting chain. If someone at the bottom of a subcontract chain has no right to work, businesses further up can be exposed, even without a direct contract with that worker.

To protect yourself, put the required terms in writing before work starts. These cover checking eligibility, consent before further subcontracting, passing the same obligations down the chain, and allowing compliance audits.

The new rules apply to engagements starting on or after 1 October 2026. In practice, that includes new starters on existing contracts.

What are the penalties?

Up to £45,000 per illegal worker for a first breach, rising to £60,000 for repeat breaches within three years. Knowingly using illegal labour can also be a criminal offence. Penalties are per worker, so one site visit can produce a six-figure bill.

What about digital checks?

Using a digital provider is optional. If you do, it must now be a Right to Work Digital Verification Service Provider registered with the Office for Digital Identities and Attributes (OfDIA) and authorised for right to work checks. Ask every provider in your chain to confirm this.

What should you do now?

1. Map your labour: direct, agency, umbrella and subcontract.

2. Update your subcontract terms with the required written statement.

3. Check before work starts and keep the evidence.

4. Verify your providers are correctly registered.

5. Diarise follow-up checks for time-limited permissions.

How can Insero help?

Insero runs right to work checks on our secure online platform, powered by Credas, a certified right to work digital verification service provider. Individuals complete a quick selfie and ID check, and you get a clear pass or fail. Records are stored securely and available 24/7.

Insero also brings right to work together with other labour supply chain checks, so your compliance evidence sits in one place.

Get in touch for a free Business Compliance Health Check and see where your supply chain stands.

For more information visit - gov.uk