Wider reform coming for all employers

6th May 2026 | Nelli Shevchenko | Immigration

The Border Security, Asylum and Immigration Act 2025 contains provisions extending the RTW regime beyond employees to bring "workers" more clearly into scope. Those provisions are not yet in force and detailed guidance is still awaited.

The draft Code of Practice on avoiding unlawful discrimination whilst preventing illegal working provides some further insight, bringing into scope those working under a contract of employment, a “worker’s contract”, an individual sub-contractor, or an “online matching service providing the details of an individual who is a service provider to potential clients or customers”. Notably, the draft Code does not use the phrase “directly engaged”.

On 15 April 2026, the Home Office opened its consultation on the draft Code, and the draft is expressly stated to apply to all employment commencing on or after 1 October 2026, and to any repeat check on an existing worker carried out on or after that date to retain a statutory excuse.

While the effective date may still be revised, publication of the draft Code is the strongest signal to date that the Home Office intends to commence the expanded illegal working regime and associated RTW check changes from 1 October 2026. The draft also widens the definition of “employer” to capture those engaging individuals under a worker’s contract, as an individual sub-contractor, or via an online matching service connecting service providers with clients or customers, and introduces new defined terms for “worker” and “right to work”.

Businesses responsible for RTW compliance should use the summer to put operational resource in place for 1 October 2026. In practical terms, that means mapping which work relationships will be brought into scope, reviewing contractual warranties and indemnities relating to illegal working, estimating the uplift in annual check volumes and the operational impact, considering engagement (or re-tendering) of a Digital Verification Service provider, and running a mock audit of existing RTW compliance ahead of go-live. Further unanswered questions include the precise categories of worker covered, timing of checks, record-retention requirements, treatment of subcontracting chains, and how online platforms and intermediaries will be captured. We expect that all of which should be resolved in the revised Employer’s Guide to Right to Work Checks expected in due course.

In summary, if you hold a sponsor licence, now is the time to audit RTW records for employees and sponsored workers, identify contractors and directly engaged individuals now in scope, review onboarding outside HR’s traditional employee process, assess historic gaps and remediation options, update procurement and engagement procedures, and brief internal teams on the changed landscape. Waiting for future reform will be too late, as compliance action can be taken now.

If you do not hold a sponsor licence, it would be sensible to understand your labour model now. Especially, if your business relies on contractors, consultants, subcontractors, casual labour or platform-based resource. Businesses that understand their population and processes early will be in a much stronger position when the final Guidance is published.

To find out more contact Nelli Shevchenko, or the Immigration team.