With the UK government tightening its stance on illegal working, significant changes to right to work checks are on the horizon. The scope is widening beyond traditional employment contracts to include the gig economy, freelancers, and complex supply chains.
For all businesses in the UK, these changes could mean new liabilities and a need for stricter due diligence. To help navigate this shifting landscape, we spoke with Keith Rosser, Director of our sister company, Reed Screening, Chair of the Better Hiring Institute, and a long-time member of ECHO - the employer advisory group to Home Office. Keith breaks down what the new rules mean for your business and how you can prepare before enforcement begins.
Q: Why is the government extending right to work checks?
A: The primary driver here is a concern over loopholes. The government has identified that certain organisations are creating new supply models which have circumvented traditional right to work checks.
Currently, if you aren't a direct employer, the lines of responsibility can be blurry. The Home Office is particularly concerned about the gig economy and modern, extended supply chains where it isn't always clear who is responsible for checking a worker's status. This ambiguity creates opportunities for individuals without the legal right to work to enter the labour market. The aim of these changes isn't just administration; it is about closing those back doors to illegal working.
Q: Who will fall under these new rules?
A: Until now, legislation has focused on employees. The new Border Security Act brings practically all forms of workers into scope. The Home Office intends to capture anybody doing work for somebody else.
This means the rules will cover:
Freelancers
Agency workers
Subcontractors
Gig economy workers
Talent pool candidates
Bank staff
Platform workers
Project workers
Essentially, if you engage someone to perform work, whether they are on a zero-hours contract or a statement of work, they will need to be checked.
Q: Who is responsible for carrying out these checks?
A: This is where it gets interesting, and potentially complex, for businesses. Currently, responsibility lies with the traditional employer. But in modern supply chains, identifying the 'employer' isn't always straightforward.
The new act introduces the concept of the 'contracting authority'. This is the entity that contracts directly with the worker. For example, if a recruitment company uses a second-tier agency, who then uses an umbrella company to place a worker, the umbrella company is likely the contracting entity responsible for the primary check.
However, the act also introduces extended liability. This means liability flows up the supply chain. If that umbrella company fails to do the check, the recruitment agency - and potentially the end-client (like a supermarket or an SME) - could also be liable.
Q: So, does everyone in the chain need to duplicate the checks?
A: Not necessarily duplicate, but you do need a defence. If an illegal worker is found in your supply chain, everyone involved will need to show they had a system in place to prevent it.
For instance, if you are an employer using an agency, you might not do the physical check yourself, but you must have a due diligence process that ensures the check was done correctly by the provider. If your supplier lies or fails, you need to prove you took reasonable steps to verify their compliance. This could involve audits, sample testing, or contractual requirements for evidence.
Q: What are the penalties for non-compliance?
A: The financial risks are severe. Penalties are already up to £60,000 per worker.
That is a sliding scale, usually starting at the maximum amount. If you can prove you had strong processes in place and it was a genuine administrative error, the fine might be reduced. But if you have no process or checks in place, you are looking at the top end of that scale. For a small business, a few illegal workers could result in fines amounting to hundreds of thousands of pounds.
It is also worth noting that for businesses with sponsor licences, failure to comply can lead to licence revocation, which could be catastrophic for your ability to hire overseas talent.
Q: When do these changes come into effect?
A: While there isn't a specific go-live date confirmed yet, we expect full implementation around summer 2026.
That gives businesses roughly six months to prepare. It sounds like a while, but given the complexity of supply chains, it really isn't long. The legislation won't be retrospective, meaning it will likely apply to new workers or new assignments starting from that date. But you need your processes ready beforehand.
Q: What steps should HR and hiring managers take right now?
A: Do not wait until June. Start by assessing your supply chain immediately.
Map your workforce:
Know exactly who is working for you and where they come from. Are they direct recruits? Are they from an agency? Is that agency subcontracting to someone else?
Identify the 'controlling entity':
For every worker, establish who holds the contract. Is it you, an agency, or an umbrella company?
Establish due diligence:
If you rely on third parties, how do you know they are compliant? Review your contracts. Can you introduce audits or require evidence of screening?
Consider professional screening:
One of the simplest ways to manage this risk is to use a reputable background screening partner. This ensures everyone, regardless of whether they are permanent employees or contractors, is vetted to the same high standard. It gives you a consistent, auditable ‘defence’ without you having to manually check every document yourself.
Q: Is there a role for technology here?
A: Absolutely. Reed was central to the implementation of digital right to work checks which has made compliance much faster, and in some cases cheaper. Integrating this into your onboarding workflow or using a third-party screening provider can centralise your compliance data.
This provides full visibility. If you face an audit, you can instantly demonstrate that checks were completed, creating a robust defence against liability.
Q: Any final advice for business leaders?
A: My advice is to focus on reputation and reliability. The deeper and more complex your supply chain, the higher your risk.
In this new landscape, making hiring decisions based purely on the lowest price or using unknown suppliers becomes incredibly risky. Stick to partners you trust, who have transparent processes, and who can give you the assurance that your workforce is legal and compliant.
Need help navigating these changes? Join Reed Screening’s free webinar to find out all you need to know about the right to work changes in the Border Security Act, direct from the policy makers who designed them, on Thursday 26 February 2026, at 1pm.
