New extended liability under the Right to Work scheme

Do we now need to carry out Right to Work checks on our contract cleaners and security personnel?

A question recently raised by one of my clients, a UK SME, concerned that new immigration rules mean it must extend Right to Work (RTW) checks beyond its own employees. It’s a reasonable concern when civil penalties for employing someone illegally can reach £60,000 per worker. Knowingly employing someone illegally can also lead to criminal prosecution, unlimited fines, or up to five years in prison, plus sanctions such as closure notices for businesses and director disqualification.

So, does the new legislation mean businesses must now check everyone working on their premises? Not necessarily.

On 1 October 2026, changes introduced by the Border Security, Asylum and Immigration Act 2025 came into force, extending the existing RTW scheme beyond traditional employees to certain other working arrangements. The extended liability provisions apply to relevant contractual arrangements entered into on or after that date.

Although much of the Government’s attention has focused on gig economy workers, the changes have wider implications. They can also affect businesses using subcontractors, certain agency and casual working arrangements, and online platforms connecting individuals with customers.

The aim is to close gaps in the existing scheme, where some individuals could be engaged to work without anyone being required to check their right to work.

But there is an important distinction between buying a service and supplying one.

Take my client’s situation. It contracts with external companies to provide cleaning and security services for its own premises. Those companies employ the individuals carrying out the work.

The client is simply buying services for its own business operations. It is not responsible for providing those services onwards to another customer. As a result, the new extended liability provisions do not apply to it.

The Home Office’s Employer’s Guide to Right to Work Checks, updated on 1 October 2026, provides a similar example involving a retailer purchasing cleaning services for its supermarkets. Responsibility for RTW checks remains with the company employing the cleaners.

Now consider a different arrangement. A facilities management company contracts to provide cleaning services to a customer but subcontracts the work to another business. Because it is responsible for delivering those services onwards, the facilities management company may fall within the extended liability regime.

The new rules also cover certain direct engagements of individual workers, online matching services and arrangements permitting substitution. A genuinely independent business providing services directly to its customers will generally remain outside the scheme, but working through a personal service company (PSC) does not automatically provide an exemption. What matters is how the arrangement actually works, not simply what the contract calls it.

For my client, that means reconsidering its position if it starts engaging individuals directly, takes control of their work in a way that changes the nature of the arrangement, or begins supplying services onwards to another business.

And while the client is outside the extended liability regime, that does not mean it can afford to ignore the issue. If a cleaning or security provider fails to comply with its own RTW obligations, the resulting disruption and reputational damage could still affect the client.

So what should businesses do now?

1. Review contractual arrangements. Establish whether you are purchasing services for your own use or supplying services onwards through another provider.
2. Check your suppliers. Seek assurances that they carry out the required RTW checks, and consider appropriate contractual protections.
3. Revisit arrangements when they change. Renewals, extensions or changes to how services are delivered may affect whether the new rules apply.

For businesses within the extended liability regime, the Home Office guidance sets out prescribed contractual and practical requirements which must be met to establish a statutory excuse against a civil penalty.

The key message is that having contractors working on your premises does not, by itself, make you responsible for their Right to Work checks. The contractual arrangements determine where responsibility lies.

If you are unsure whether your business falls within the extended liability regime, now is a sensible time to review your arrangements rather than wait until something goes wrong.