All UK employers have a legal responsibility to prevent illegal working by carrying out right to work checks before an individual starts work. These checks verify that an individual is legally entitled to work in the UK and help employers establish a statutory excuse against potential civil penalties if it later transpires that an individual did not have permission to work in the UK.
A compliant right to work check can be completed through:
- A manual document check
- The Home Office online checking service
- A certified Identity Service Provider (IDSP) for eligible British and Irish nationals
Checks must be completed before work commences, and records should be retained appropriately.
Despite the legal and commercial risks involved, many organisations still do not have robust right to work checks in place when engaging employees, contractors or subcontractors. For businesses, getting this wrong can result in significant financial penalties, reputational damage and operational disruption. Taking the time to understand your responsibilities are therefore essential.
The Growing Risk for Businesses Using Subcontractors
Many employers assume that right to work obligations apply only to individuals on their payroll. However, recent developments in right to work compliance have expanded employer responsibilities in certain circumstances, increasing the importance of understanding who is carrying out work on behalf of your organisation and whether appropriate checks have been completed.
For many employers, particularly within construction, logistics and manufacturing, it is common for work to be sourced through contractors, subcontractors and other third-party providers. This can create complex labour supply chains where businesses may not have direct oversight of every individual carrying out work on their behalf. As a result, organisations should ensure they understand where responsibility lies and what due diligence measures are in place throughout the supply chain.
The Changing Landscape for Contractors
From 1 October 2026, businesses engaging subcontractors and certain non-traditional labour arrangements may have additional right to work compliance obligations. These changes are designed to address illegal working within increasingly complex labour models and place greater emphasis on ensuring that all individuals carrying out work are legally entitled to do so.
As labour supply arrangements become more diverse, employers can no longer assume that right to work compliance is solely an issue for directly employed staff. Organisations should consider who is undertaking the work, how they are engaged and whether appropriate checks have been carried out.
Who is Responsible?
One of the most common areas of confusion is determining who is responsible for ensuring a worker has the right to work in the UK. The answer depends on the nature of the contractual arrangements and, importantly, how the working relationship operates in practice. The Home Office places emphasis on the substance of the relationship rather than the title given to it.
Where subcontractors, agency workers or labour providers are used, organisations should clearly establish:
- Who is responsible for conducting right to work checks
- What evidence will be provided to demonstrate compliance
- How compliance will be monitored throughout the contractual arrangement
Failing to clarify responsibilities at the outset can leave businesses exposed to significant legal and financial risks.
The Cost of Non- Compliance
The consequences of getting right to work compliance wrong can be severe. Current civil penalties can reach up to £45,000 per worker for a first breach and £60,000 per worker for repeat breaches. In addition to financial penalties, employers may also face reputational damage, contract disruption and increased scrutiny from regulatory authorities.
Employers should ensure compliance is not viewed solely as an HR responsibility but as a wider organisational risk that extends across the labour supply chain. Effective compliance requires collaboration between operational teams, procurement functions, hiring managers and HR professionals alike.
Looking Beyond Right to Work Checks
Even where formal right to work obligations may not apply, organisations should still undertake appropriate due diligence before engaging contractors and subcontractors.
Good contractor vetting may include:
- Verifying identity
- Checking professional qualifications and licences
- Obtaining evidence of insurance cover
- Reviewing references and previous work history
For construction and other high-risk industries, additional checks may also be required to ensure individuals have the necessary competence, training and health and safety credentials to undertake the work safely.
Practical Steps Employers Can Take
To strengthen compliance and reduce exposure, employers should consider:
- Reviewing contractor and subcontractor arrangements currently in place
- Confirming who is responsible for carrying out right to work checks throughout the supply chain
- Undertaking due diligence before engaging contractors and labour providers
- Requesting evidence that checks have been completed where appropriate
- Ensuring managers understand when right to work obligations may arise
Taking a proactive approach can help identify potential risks before they become compliance issues.