What every business using flexible labour needs to know before October 2026

Most businesses think Right to Work checks are an employee issue.

You recruit someone, check their documents, keep a copy on file and move on.

But what about the self-employed contractor you use every week?  The freelancer covering a project?  The subcontractor who turns up on site?  The casual worker who helps out during busy periods?

If you've assumed Right to Work checks don't apply because they aren't employees, October 2026 could catch you out.

The Government is expected to widen the scope of Right to Work checks, bringing many businesses that rely on contractors and flexible working arrangements into scope.

This isn't just an HR issue.  It's a business risk, and a costly one.  Get it wrong inadvertently and you could be facing a civil penalty of up to £45,000 per illegal worker for a first breach, rising to £60,000 for a repeat breach. There's also a criminal dimension.  Where an employer knew, or had reasonable cause to believe, someone didn't have the right to work, that's a criminal offence carrying an unlimited fine and up to five years' imprisonment.

Why This Matters

The way businesses engage people has changed.

Many organisations now rely on self-employed contractors, casual workers, subcontractors and flexible labour to meet demand.  The law is changing to reflect that.

Imagine you own a restaurant.  You use employed staff most of the time, but every weekend you bring in a self-employed chef recommended by a friend.  Under the anticipated changes, that arrangement will require the same level of Right to Work checking as an employee.

If the current timetable remains unchanged, from 1 October 2026 businesses will be expected to carry out Right to Work checks on a much wider range of individuals carrying out work in the name of their business.

That means your responsibilities may no longer stop with employees.  And with the Fair Work Agency now operational, enforcement isn't theoretical, inspectors will have the power to visit workplaces and identify gaps in your checks, not just respond to complaints.

Who Could Be Affected?

The anticipated changes are expected to extend Right to Work checks to include people such as:

👷 Individual subcontractors

💼 Self-employed contractors

⏰ Casual workers

📅 Zero-hours workers

📱 Individuals providing services through online matching platforms

🤝 Anyone carrying out work in the name of your business, even where there isn't a direct employment relationship

This is particularly relevant for businesses operating in sectors such as hospitality, leisure, retail, construction, logistics, beauty, courier services and warehousing. But the changes could affect any organisation using flexible labour.

The Biggest Mistake Businesses Will Make

The most expensive thing a business owner could assume after October is: "They're only a contractor. Checking Right to Work isn’t my responsibility”. 

That's exactly where the risk lies.

In future, being a contractor or self-employed doesn't automatically remove your responsibilities.

If someone is carrying out work for your business, you will need to verify that they have the legal right to work in the UK.  Simply relying on the fact they invoice you or work through another arrangement will not be enough.

That's a significant shift in thinking for many SMEs.

It's Not Just About Contractors

The changes don't just affect who you engage directly.

If work is delegated to another individual or subcontracted further down the supply chain, businesses could still find themselves exposed if appropriate Right to Work checks haven't been carried out.

This means it's worth reviewing not only your own recruitment processes but also how you engage agencies, subcontractors and other service providers.

Digital Checks Are Becoming More Important

The Government also intends to introduce greater use of certified digital verification services for electronic Right to Work checks.

While further guidance is expected, businesses that currently rely on paper-based or inconsistent processes should start thinking about how digital verification could fit into their onboarding procedures.

Don't Forget Discrimination

As the scope of Right to Work checks expands, so does the importance of carrying them out fairly.

Every individual should be treated consistently regardless of their nationality, ethnicity or immigration status.

Only checking people who "look" or "sound" as though they might not have the right to work could expose your business to discrimination claims as well as immigration penalties.

Consistency is critical.

Five Actions You Can Take This Week

🔍 List everyone working in your business's name

Don't just look at employees.  Map every contractor, freelancer, subcontractor and casual worker providing services to your organisation.

📋 Audit your onboarding process

Ask yourself whether your current Right to Work process only covers employees.  If it does, you'll need to consider how it needs to evolve.

🤝 Update your contacts and talk to your agencies and subcontractors

Ensure your paperwork highlights the requirement for all individuals to prove eligibility to work in the UK. Find out how Right to Work checks are currently managed further down your supply chain, and where responsibilities sit.

👥 Train your managers

Anyone who engages contractors or temporary workers should understand the anticipated changes before they come into force.

📅 Set a reminder to check for the updated Code of Practice

Further guidance is expected before implementation.  Put a date in the diary now so you're not scrambling to catch up when it lands.

The Reality Check

Many businesses already have robust processes for employees.

Very few have the same processes for contractors, freelancers and casual workers.

The businesses that will get caught out won't be the ones deliberately employing illegal workers. They'll be the ones who simply didn't realise the rules had changed.

If you’re using flexible labour, you should review your onboarding process, contractor arrangements and supply chain before October arrives. With penalties running as high as £60,000 per worker, this isn't a risk worth carrying.

Unsure whether these changes will affect your business? Get in touch at nicole.james@bamboopeoplesolutions.co.uk and I'll help you review your Right to Work processes before the new requirements take effect.