Right to Work Changes from 1 October 2026: Why Employers Need to Act Now
For many established employers, Right to Work compliance has traditionally sat firmly within the HR or the recruitment function. However, in a more modern start-up operation this may not be the case. From 1 October 2026, UK employers, no matter their size will need to ensure Right to Work responsibility is clearly assigned with processes clearly defined to minimise risk to the business.
The UK's updated Right to Work framework represents one of the most significant developments in illegal working compliance for many years. The changes are designed to ensure that illegal working can be identified under a much broader range of working arrangements and engagement models, reflecting the reality of today's employment market. Employers should view this as part of a wider government initiative focused on increasing compliance, strengthening enforcement, and closing perceived gaps in existing Right to Work processes.
Importantly, businesses should not assume that enforcement activity will only affect organisations with obvious compliance concerns. We are already seeing an increase in illegal working notices and compliance enquiries – not just to UK sponsor licence holders. In many cases, this appears to be driven by greater information sharing and connectivity between different government departments, enabling authorities to identify potential illegal working more quickly and thoroughly than ever before. The direction of travel is clear: enforcement is becoming increasingly intelligence-led, and employers should expect greater scrutiny of their workforce compliance practices.
Since the Right to Work regime was introduced in 2008, the updated Code of Practice, due to take effect on 1 October 2026, expands the need for Right to Work processes to expand beyond traditional direct employment models.
What does this mean in practice?
The changes place greater emphasis on identity, digital verification and robust controls around how individuals are engaged. Specific references are made to contractual protections, substitution controls and identity verification systems as key elements of demonstrating valid Right to Work check compliance. The Code also permits employers to outsource impersonation checks to approved digital verification providers using facial recognition technology, such as WorkRight.
For HR teams, this means Right to Work compliance is evolving from a pre-employment document check into a broader workforce governance exercise. UK Sponsor Licence holders will be more familiar with the need to facilitate on-going record retention and verification procedures, but with increased focus on different employer/employee engagement models, internal accountability will become increasingly important to all UK employers.
The small business challenge
A common misconception is that these changes will primarily affect large businesses. In reality, smaller employers may face the greatest challenge.
Take a UK manufacturing business with 40 employees. Historically, recruitment may have been managed by a small HR team or even by office managers alongside their day-to-day responsibilities. Under the new regime, that organisation will need confidence not only that initial checks are completed correctly, but also that records can be produced quickly during an audit, follow-up checks are completed where required, and any outsourced labour arrangements are appropriately managed.
For many SMEs, the risk is not deliberate non-compliance. It is inconsistent processes, reliance on manual records, or assumptions that responsibility sits elsewhere in the business.
The global corporate challenge
For global employers, the question is no longer whether a policy exists. The question is whether that policy can be consistently evidenced across the entire workforce ecosystem.
A multinational organisation may have excellent UK HR procedures but engage hundreds of contractors, consultants or contingent workers through multiple suppliers. The complexity of those arrangements can make it difficult to maintain oversight and consistency.
The new framework reinforces the need for organisations to understand exactly who is performing work within their business, how that work is being supplied, and what controls exist to verify identity and Right to Work status. As governments continue to digitise immigration and identity systems, we are already seeing expectations around workforce visibility and auditability are increasing.
Preparing for October 2026
The organisations best placed to navigate these changes will be those that act before October rather than take the wait and see approach.
We are already working with many clients to review their Right to Work policies, recruitment processes, contractor arrangements, evidence retention procedures and training programmes. Many businesses are also assessing whether their current technology, identity verification processes and monitoring controls remain fit for purpose under the new framework.
The government's message is increasingly clear: Right to Work compliance is no longer solely about checking a document at the point of hire. It is about demonstrating that an organisation has effective controls to identify and prevent illegal working in all the ways people perform work today.
As enforcement activity continues to increase and government agencies become more connected in their approach, employers that take a proactive approach now will be in a far stronger position to defend their compliance processes, protect their statutory excuse and minimise regulatory risk in the years ahead.
