Who is responsible for Right to Work compliance? What employers need to know

The organisation with the direct contractual relationship with the worker will remain responsible for carrying out the relevant right to work checks, where the expanded definition of employment applies.

However, the changes may mean that other organisations involved in the contractual chain could also fall within the scope of the Right to Work Scheme in certain circumstances.

This is particularly relevant where work is delivered through multiple layers of contracting, responsibility for workers is unclear or it is difficult to identify the organisation directly responsible for the individual carrying out the work.

The new provisions do not transfer responsibility for carrying out checks from one organisation to another. Nor do they mean that every organisation involved in a supply chain must carry out duplicate checks.

However, organisations should understand their position within the relevant contractual chain and consider whether their arrangements could bring them within scope. Where an arrangement is within the scope of extended liability, then organisations within the contractual chain must have in place certain contractual terms, substitution controls and identity verification processes in order to establish a statutory excuse against extended liability.

A useful starting point is to map the supply chain and establish:

• Who has the direct contractual relationship with the worker?

• Who is responsible for arranging and delivering the work?

• Are further subcontractors involved?

• Is responsibility for right to work checks clearly addressed in the relevant agreements?

• Are there effective processes for monitoring compliance?

Potentially, depending on the circumstances.

From 1 October 2026, the extended liability provisions may mean that an organisation can fall within the Right to Work Scheme even where it does not directly employ or engage the individual concerned.

This does not mean that every organisation further up a supply chain will automatically be liable for illegal working by an individual engaged by another business.

The draft guidance makes clear that the particular contractual arrangements and the organisation's role in arranging or delivering the work will be relevant.

However, organisations should not assume that liability always ends with the entity that has the direct contractual relationship with the worker.

This could be particularly important where:

• there are multiple layers of contracting or subcontracting

• responsibility for workers is unclear

• an organisation is responsible for delivering services through a wider contractual chain

• it is difficult to identify the person or organisation directly responsible for the worker.

An organisation that falls within the regime and cannot establish a statutory excuse could face a civil penalty of up to £60,000 per illegal worker.

No.

The changes do not mean that every organisation purchasing services from another business must carry out its own right to work checks on all individuals working for that supplier.

The organisation directly responsible for engaging the worker will remain responsible for carrying out the relevant checks.

However, where the extended liability provisions apply, organisations may need appropriate contractual controls and processes to understand and manage the risk within their supply chains.

This could include reviewing supplier obligations, obtaining appropriate evidence of compliance, having audit or verification rights and establishing processes for responding where concerns are identified.

The appropriate approach will depend on the organisation's role and the particular contractual arrangements.

Unfortunately, simply adding a clause requiring a supplier to comply with right to work obligations is unlikely to provide sufficient protection; the draft guidance makes it clear that a statutory excuse will only be available where the prescribed contractual requirements are in place before the work commences and that these can be shown to be operating effectively in practice.

Organisations should avoid relying on assumptions about where responsibility sits.

Before 1 October 2026, it may be helpful to map relevant contractor, agency and supply-chain arrangements and identify:

• the organisations involved in arranging and delivering the work

• who has a direct relationship with each worker

• whether individuals or further subcontractors can be introduced into the arrangement

• who is responsible for carrying out right to work checks

• what evidence or assurances can be obtained to demonstrate compliance

• what happens if concerns about an individual's right to work arise.

This may require closer collaboration between HR, procurement, legal and compliance teams.

The key point is that organisations should ensure responsibility is not only addressed on paper but understood and supported by effective processes in practice.

If your organisation relies on contractors, agencies, labour providers or subcontractors, now is a good time to review your arrangements before the new rules take effect.

Our October 2026 Right to Work checklist can help identify whether your organisation may be affected and highlight areas where further review may be required.

Need advice on your supply-chain arrangements? Our Employment and Immigration teams can help organisations understand their potential exposure and review the contractual and practical controls supporting right to work compliance.