Picture this scenario: A construction project is underway, you've appointed a main contractor, the project is progressing well, and labour is arriving on site through a network of subcontractors. A few months after the project is complete, the Home Office discovers that an individual working on site did not have the right to work in the UK.
Your immediate reaction might be that this is someone else’s problem. After all, you did not employ the individual without the right to work in the UK. You may have never even met them. Until recently, you may have been largely correct. Right to Work obligations have traditionally focused on direct employers and whether they carried out the required checks before employment began.
However, from 1 October 2026, two significant changes to the UK’s Right to Work scheme mean businesses throughout the contractual chain need to think much more carefully about the prevention of illegal working. Whether you are a developer, main contractor or subcontractor, understanding these changes and taking practical steps to ensure compliance with them is essential to protect your business from fines of up to £60,000 per illegal worker.
Right to Work Checks: Who Must Be Checked?
The first change is simple but significant; right to work checks are no longer limited to employees. Businesses must now carry out the same checks on workers and individual subcontractors. The change is designed to prevent businesses from avoiding their duty to prevent illegal working by hiring agency workers or self-employed operatives who do not fall within the category of ‘employees’.
The message here is clear, businesses should not assume that a right to work obligation only arises where there is a traditional employment contract. Businesses that rely on flexible labour arrangements should review their onboarding processes and ensure that appropriate checks are being carried out in respect of all relevant personnel who now fall within the scope of the right to work scheme before they commence work.
Can Contractors Be Liable for Illegal Workers on Site?
The second change expands the scope of who can be held responsible where illegal working is identified within a chain of contracts. Consider a typical construction project. A developer appoints a main contractor. The main contractor appoints several subcontractors. Those subcontractors may in turn engage workers from a labour agency. If illegal working is identified somewhere within that chain, the consequences may no longer be confined to the immediate employer. Businesses further up the chain can now also find themselves facing enforcement action and significant fines from the Home Office, even months after the project has been completed.
How Businesses Can Prepare for the New Right to Work Rules
The days of simply assuming that immigration compliance is someone else’s responsibility may be coming to an end. Businesses that take the time now to understand the changes to the scheme and take proactive steps to review their compliance with the Home Office Guidance will be best placed to avoid potentially significant fines and reduce risk across their projects.
It should be noted that these changes do not apply retrospectively, meaning existing contractual frameworks will not be affected.
If you are unsure how these changes may affect your business, or would like assistance reviewing your contracts and processes, our Construction and Employment teams are happy to help.