From 1 October 2025, UK employers must carry out right to work checks on far more than their own direct employees. The requirement now covers agency workers, contractors, sub-contractors, gig economy platforms and service providers — and platforms that match freelancers to clients must also verify that the people working through them have the legal right to work in the UK.

Previously, organisations only had to conduct right to work checks on people they employed directly. The change closes that gap and pushes responsibility for preventing illegal working across what the government calls "modern labour market structures".

What are the penalties for non-compliance?

Businesses that employ or engage someone without the right to work face fines of up to £45,000 per worker for a first breach and £60,000 for repeat breaches. Serious cases risk prosecution, an unlimited fine and up to five years in prison.

Announcing the policy in a written statement to the House of Commons on 30 June, Alex Norris, then minister of state for border security and asylum, said: "Illegal working undermines honest businesses and exposes vulnerable individuals to exploitation. This government is clear that such activity will not be tolerated."

He added that the reforms would "close gaps in the current framework and ensure that responsibility for the prevention of illegal working sits appropriately across modern labour market structures".

Who is most affected?

Naomi Goldshtein, partner at global immigration and mobility advisers Fragomen, called the update a "major change for businesses built on flexibility and seasonal demand", warning that the "implications are significant".

"The starting point is to know your workforce," she explained. "Employers will have strong visibility over direct employees but less oversight of agency workers, contractors, subcontractors and other contingent labour."

Ilda de Sousa, business immigration partner at Kingsley Napley, identified the sectors most exposed: those relying heavily on subcontracting, contingent labour and labour supply chains. The list includes:

• Construction
• Hospitality
• Facilities management
• Social care

What should businesses do now?

Goldshtein advised organisations to establish three things about everyone carrying out work for them: who they are, what type of contract they work under, and how they were recruited. "Simply stating that another party is responsible for checks will not be enough," she warned.

Employers should map every workforce category and contractual route, not just employees. Goldshtein recommended identifying:

• Workers' contracts
• Individual subcontractors
• Online matching arrangements
• Contracts permitting substitution

De Sousa said organisations should also make sure their contractual arrangements comply with the new requirements. In addition to reviewing existing contracts and, where necessary, negotiating new provisions that reflect the information and safeguards expected by UK Visas and Immigration, businesses should implement robust processes for ongoing compliance, she said.

Practical steps could include regular audits, obtaining confirmation from contractors and service providers that the required right to work checks have been carried out, and verifying that the correct processes have been followed.

Goldshtein also stressed that HR, recruitment, procurement and operational teams must all be trained on the new rules.

Where to find the official rules

The penalty levels and checking procedures are set out in the government's Code of Practice on Preventing Illegal Working — Right to Work Scheme for employers, published on GOV.UK. Employers with questions about specific situations should consult the official guidance or seek professional advice; this article explains the policy change and does not constitute legal advice for individual cases.