Who do the new Right to Work rules apply to? 5 questions employers should ask

Not necessarily, however, the scope is widening beyond traditional employment relationships. Worker contracts, individual subcontracting arrangements and online matching services now fall within the regime for conducting right to work checks before work commences.

Organisations should start by considering who actually carries out work for them, rather than focusing solely on their directly employed workforce. This may include workers, individual contractors, subcontractors and workers on non-traditional arrangements.

What matters is how the arrangement works in practice, not the label attached to it. Labelling someone "self-employed", "contractor" or "freelancer" will not necessarily determine whether an arrangement falls within scope.

A useful first step is to map the different ways in which individuals carry out work for your organisation and identify arrangements that may need further review.

Possibly, yes. Though it does really depend on how the arrangement works in practice.

From 1 October 2026, the scheme extends to some arrangements that sit outside traditional contracts of employment. This includes worker contracts and engagements with individual subcontractors.

Organisations should therefore be cautious about assuming that an individual is automatically outside the regime simply because they are described as self-employed, a contractor or a freelancer.

The draft guidance emphasises the importance of considering how an arrangement operates in practice. Factors such as the contractual relationship, who is responsible for arranging the work and who actually carries it out may all be relevant, so this should all be reviewed to consider whether a particular arrangement will be caught by the new rules.

In addition, organisations which outsource the delivery of some or all of their services need to consider whether those arrangements will be caught by the new provisions which extend liability to supply chains, potentially making you liable if a service supplier engages a worker who does not have the right to work in the UK.

Substitution arrangements could become particularly important under the expanded Right to Work Scheme.

Where an individual is permitted to appoint someone else to carry out work on their behalf, organisations may need to consider the identity and right to work status of the person who actually performs the work.

For example, an organisation may have carried out appropriate checks on an individual who was originally engaged to provide services. If that individual is permitted to send a substitute, the person actually carrying out the work could be someone the organisation has not previously identified or verified.

Organisations should therefore review both their contractual arrangements and how substitution works in practice.

Questions to consider include:

• Is substitution permitted under the contract?

• Can the individual appoint a substitute without prior approval?

• How does the organisation find out when a substitute will be used?

• Is there a process for verifying the identity and right to work status of the person who actually carries out the work?

Simply addressing substitution in a contract may not be enough. Organisations should consider whether they have effective processes for managing substitution when it occurs in practice.

The new rules also extend liability to situations where a service provider sub-contracts the delivery of some or all of those services. In those situations where extended liability applies, liability for payment of a civil penalty for illegal working may extend beyond the organisation which engaged the illegal worker to other organisations in the chain of contracts.

The draft guidance makes clear that the new provisions are not intended to bring every organisation that purchases services within the scope of the extended liability regime.

For example, there may be an important distinction between a business that purchases cleaning services for its own premises and an organisation that is responsible for delivering services to a customer through a chain of contractors or subcontractors.

In some circumstances, the nature of the contractual chain and the organisation's role in arranging or delivering the work may be relevant to whether the new provisions apply.

The position may not always be straightforward, particularly where services are delivered through complex contracting arrangements involving several organisations.

Businesses should therefore consider the role they play in the relevant arrangement rather than assuming that simply purchasing services will either automatically bring them within scope or automatically exclude them.

Start by identifying everyone who carries out work for your organisation and mapping the different arrangements through which they are engaged.

Particular attention should be given to workers and individuals who are not directly employed, individual contractors and subcontractors, supply chains involving multiple parties, arrangements involving substitution and any platform or marketplace model used to connect individuals with work.

If your organisation has complex arrangements or it is unclear where responsibility sits, it may be sensible to review the relevant contracts and processes before 1 October 2026.

Our checklist can help you identify whether your organisation may be affected by the changes and where further review may be required.