United Kingdom: Draft Right to Work Code Expands Compliance Requirements

The UK Government has published a DRAFT Code of practice on preventing illegal working, expected to take effect on 1 October 2026 alongside changes introduced by the Border Security, Asylum and Immigration Act 2025.

What is Changing to the Draft Code of Practice on Illegal Working?

Under the current rules, right to work obligations generally apply to employers with traditional employment relationships. Beginning 1 October 2026, these obligations are expected to extend to organizations that engage:

• Individuals under employment contracts
• Workers engaged under worker contracts
• Individual subcontractors
• Certain online matching platforms that connect service providers with customers or clients

The new scheme will not apply to genuinely self-employed individuals who provide services directly to clients through their own independent businesses.

Expanded Liability for Illegal Working

The draft Code introduces circumstances in which liability may extend beyond the direct employer. Organizations involved in the following may be held responsible for illegal working if they cannot demonstrate compliance with the applicable requirements:

• Subcontracting arrangements
• Labor supply chains
• Online matching platforms
• Worker substitution arrangements

To establish a statutory excuse and avoid civil penalties for non-compliance, organizations may need to show that they have implemented appropriate:

• Right to work checking procedures
• Identity verification measures
• Contractual controls governing the engagement of workers

Right to Work Check Requirements

To maintain compliance, organizations must complete a valid right to work check before an individual starts work. Checks may be conducted through:

• A manual document check
• The Home Office online checking service
• A registered Right to Work Digital Verification Service Provider (RtW DVSP)

The draft Code further confirms that, except where a prescribed RtW DVSP service is used, responsibility for conducting right to work checks cannot be delegated to a third party. Organizations remain responsible for compliance.

Actions for Internal HR Teams Now

Organizations that engage contractors, subcontractors, temporary or contingent workers, platform-based workers, or individuals working under substitution arrangements should begin reviewing their internal compliance processes in preparation for the proposed changes. We strongly recommend evaluating contractual arrangements with suppliers and subcontractors, worker onboarding procedures, right to work verification processes, and identity verification controls across the labor supply chain.

Increased Civil Penalties

The draft Code also confirms that civil penalties for illegal work may reach £45,000 per worker for a first breach within a three-year period and £60,000 per worker for a repeat breach within three years.

These increased penalties highlight the importance of maintaining effective right to work compliance procedures across all worker populations and engagement models.

We will continue to monitor developments and provide updates as additional guidance becomes available. For further information, please contact EMEA@ClarkHill.com.

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