UK to Broaden Right to Work Scheme Starting October 1, 2026: Draft Code Details Employer Duties, Increased Liability, and Outsourcing Alternatives for Companies

UK Right to Work Scheme expands from October 1, 2026 with broader employer duties, supply chain liability, and outsourcing of facial verification.

London, 2 July 2026 — The UK government has published a detailed Draft Code of Practice on Illegal Working, outlining how the expanded Right to Work (RTW) Scheme will operate from October 1, 2026.

The Code introduces important clarifications for employers, particularly those using complex supply chains, gig economy platforms, or flexible workforce models, while significantly increasing compliance requirements and potential liability.

Key Changes in the Expanded Right to Work Scheme

Broader Definition of “Employer” The scheme now covers a wider range of working arrangements, including:

• Workers engaged under contracts (not just traditional employment contracts).

• Sub-contractors performing work for the business.

• Individuals matched through online platforms where the business charges a fee.

Extended Liability Civil penalties (up to £60,000 per worker) can now move through the contractual chain if the direct employer cannot be identified or fails to comply. Non-direct employers can establish a statutory excuse by meeting prescribed contractual and control requirements.

Prescribed Requirements for Supply Chains To avoid liability, businesses must include specific clauses in contracts, such as:

• Obligation to conduct right to work checks.

• Controls on onward subcontracting.

• Audit and monitoring rights.

• Rights to suspend or terminate arrangements in case of non-compliance.

Substitution Controls Where contracts allow substitution, businesses must implement robust controls to ensure substitutes are verified before starting work.

Outsourcing Facial Verification Employers can now outsource impersonation checks to approved Right to Work Digital Verification Service Providers (RtW DVSP) using facial recognition technology (must be registered on the Office for Digital Identities and Attributes register).

What Businesses Must Do Before October 1, 2026

• Map workforce models and supply chains to identify who falls under the expanded scheme.

• Review and update contracts with labour providers and subcontractors.

• Strengthen onboarding, identity verification, and monitoring processes.

• Consider using approved digital verification providers to streamline checks.

Background and Government Objectives

The expansion of the RTW Scheme was introduced through primary legislation in December 2025 and secondary legislation in June 2026. The draft Code now provides practical guidance on compliance, aiming to reduce illegal working while supporting legitimate flexible and supply-chain workforce models.

For the latest UK Right to Work Scheme updates, employer compliance guidance 2026, expanded RTW obligations, and immigration enforcement news, visit: visasupdate.com/blog/categories/uk