Have you checked your labour supply chains?

New legislation that came into effect on 1 October 2026 makes it essential for businesses that engage subcontractors, agency workers or operate complex labour supply chains to review their right to work compliance procedures.

Employers may face up to five years’ imprisonment and an unlimited fine if found guilty of employing individuals whom they knew, or had reasonable cause to believe, did not have the right to work in the UK.

The Border Security, Asylum and Immigration Act 2025 came into force on 1 October 2026 and extends right to work obligations beyond traditional employment relationships. Businesses should no longer assume that labour supplied through subcontracting or other non-traditional working arrangements falls outside right to work requirements.

Companies should ensure they have appropriate processes for verifying workers’ identities and retaining evidence of the checks carried out.

Employers who conduct right to work checks in accordance with Home Office guidance and the relevant statutory codes of practice may establish a statutory excuse against civil penalties.

The Home Office notes that illegal working can expose vulnerable individuals to exploitation and modern slavery and can create unfair competition for compliant businesses.

Businesses that use agency workers, contractors or outsourced labour arrangements should review their onboarding procedures to ensure they are meeting their obligations under the updated rules.

For further information, see the Home Office’s Employer’s Guide to Right to Work Checks: https://www.gov.uk/government/publications/right-to-work-checks-employers-guide/draft-employers-guide-to-right-to-work-checks-16-july-2026-accessible

If you have any queries about the new legislation please get in touch with James Alesbury by using the details below.