UK Expands Right to Work Scheme to Gig Economy and Agency Workers from October 2026

LONDON, October 3, 2026 — The UK's expanded Right to Work Scheme took effect on 1 October 2026, extending civil penalty liability to businesses that engage workers through personal service companies, agency arrangements, and online matching platforms for the first time. The reforms implement provisions in the Border Security, Asylum and Immigration Act 2025 and close long-standing gaps in the previous framework that applied only to direct employers.

The Home Office published final employer guidance alongside the regulations, including a new Annex C – Questions and Answers addressing practical issues such as PSCs, existing contracts, overseas working, and contractual chains. Employers can access the full Right to Work Checks: Employer's Guide on GOV.UK, which was last updated on 1 October 2026 to reflect the expanded scheme. The Home Office has also updated the Code of Practice on Preventing Illegal Working: Right to Work Scheme for Employers, which sets out the prescribed checks employers must conduct to avoid civil penalties and the factors considered when determining penalty amounts.

UK expands Right to Work Scheme to gig economy and agency workers from 1 October 2026.

What Changed: The Expanded Scope

Previous Framework	Expanded Framework
Civil penalties applied to direct employers	Extends to businesses engaging individuals under worker's contracts, as individual subcontractors, or via online matching services
Digital checks not uniformly required	Mandates use of government-registered digital verification service providers (DVSPs)
End-user liability unclear	Clarifies that end-users of services are not liable where they are not contractually responsible for providing work onwards

Who Is Now in Scope

Direct Engagements

Businesses now have direct employer liability where they engage an individual under a worker's contract, as an individual subcontractor, or through an online matching service providing service provider details.

Extended Liability

Civil penalty liability may extend beyond the direct employer in specific contractual chains, online matching arrangements, and substitution models — but only where the business is itself contracted to provide or arrange work onwards to a third party.

Key Clarification: A retailer buying cleaning services, a manufacturer obtaining temp workers for its own factory, or a food producer using agency labour for its own operations does not trigger extended liability. Responsibility remains with the direct contractual employer.

The Genuine B2B Exemption

The guidance confirms the scheme does not generally apply to genuine independent businesses contracting directly with clients.

Example: A graphic designer engaged through their own personal service company for a specific project — the client is purchasing services under a genuine B2B arrangement and does not need to conduct a right to work check.

However, using a PSC is not conclusive. The contractual terms and practical reality must be assessed — how work is arranged, supplied, and performed.

Digital Verification Service Providers (DVSPs)

Where employers choose digital verification, it must be conducted through a provider registered on the Office for Digital Identities Attributes (OfDIA) register.

Aspect	Requirement
Registration	Mandatory OfDIA registration
Employer Responsibility	Employer remains responsible for ensuring checks meet prescribed requirements
Imposter Checks	DVSP must provide facial recognition technology to confirm identity
Alternative	Individuals not wishing digital checks must not be treated less favourably — manual checks must be offered

New Annex C: Questions and Answers

The final guidance includes a new Annex C addressing practical questions including personal service companies, existing contracts and subsequent variations or renewals, overseas working arrangements, and contractual chains and assurance requirements.

Record-Keeping and Compliance

Employers must retain evidence of every check for the duration of employment plus two years after the worker stops working.

Requirement	Detail
Format	Hardcopy or scanned copy (JPEG/PDF) that cannot be altered
Date Record	Must record the date the check was conducted
Follow-up Checks	Same process for time-limited right to work
Statutory Excuse	Only established if prescribed checks are correctly completed

Penalties for Non-Compliance

Civil penalties can reach up to £60,000 per illegal worker in aggravated cases. A statutory excuse against liability is only available where prescribed checks have been correctly carried out before employment commences.

Related Policy: Modern Slavery Protections

Alongside the RTW expansion, the Home Office has introduced landmark protections for Skilled Worker visa holders recognised as victims of modern slavery. As detailed in VisasUpdate's coverage of the HC 584 changes, recognised victims can leave abusive employers and work in any occupation for the remaining duration of their visa without reapplying. The changes take effect from 8 October 2026, with additional dates through December 2026.

Quick Reference Summary

Aspect	Details
Effective Date	1 October 2026
Expanded Scope	PSCs, agency workers, gig economy, online matching
Digital Verification	Mandatory OfDIA-registered DVSPs
End-User Liability	Not liable if not contracted to provide work onwards
Record Retention	Employment duration + 2 years
Penalties	Up to £60,000 per illegal worker
Modern Slavery Protections	From 8 October 2026

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