A practical guide for The Recruitment Network members | October 2026

This guide is for you as a TRN member running or working in a recruitment business. It provides general information, not advice on a specific case. Your obligations depend on how each worker is actually engaged, not just the label used in the contract.

What this means for your business

• From 1 October 2026, you need to be aware that the Right to Work Scheme covers additional working arrangements beyond employees, including workers engaged under a worker’s contract, individual subcontractors and certain online matching services.
• You should not assume that a contractor, umbrella or limited company arrangement automatically removes your own checking duties. Map who engages the individual and which statutory category applies.
• Complete the prescribed check before work starts where your business has the duty; retain evidence and schedule follow-up checks where permission is time-limited.
• Use written responsibilities, supplier assurance and audit rights throughout the supply chain. Contractual promises do not automatically transfer a statutory duty.

1. What has changed?

The Border Security, Asylum and Immigration Act 2025 extended the illegal-working framework. The changes took effect on 1 October 2026. For your business, this matters because the statutory checking regime previously focused on employees; it now also reaches specified non-employee arrangements. The Home Office right to work checklist (updated 1 October 2026) identifies employment contracts, worker’s contracts, individual subcontractors and qualifying online matching services.

A worker’s contract is not the same thing as every business-to-business services agreement. Whether an arrangement falls within scope requires consideration of the contractual terms and how work is actually performed. Do not treat every PSC engagement as automatically exempt or automatically covered.

2. Who needs to carry out the check in your business?

3. How you can complete the checks

• Home Office online check: for individuals whose immigration status is checked digitally, use their right to work share code and date of birth; save the result and confirm the photograph matches the person.
• Digital identity verification: an appropriately certified digital verification service can be used for eligible British and Irish passport holders, with the required identity match.
• Manual check: where permitted, examine original acceptable documents in the presence of the holder and retain dated copies; a scan or video call alone is not a compliant manual check.
• Where status cannot be confirmed, do not allow work to start in a role requiring a check. Consider the Employer Checking Service where its criteria are met.

4. What you should do now

• Map all routes of supply: PAYE, worker contracts, umbrellas, PSCs, sole traders, second-tier suppliers and platforms.
• Assign an accountable person to determine who has each statutory checking obligation; document the decision for complex models.
• Update onboarding so required checks are completed before the first shift, even for short bookings.
• Keep check records securely for the engagement and generally two years after it ends; restrict access and follow data-protection requirements.
• Track expiry dates, visa restrictions and follow-up checks. Apply the process consistently to avoid discrimination.
• Review client, umbrella and supplier agreements: warranties, evidence-sharing, audit rights, prompt notifications, suspension/replacement rights and proportionate indemnities.
• Train recruiters and compliance teams, audit a sample of contractor files and escalate uncertain engagement structures.

5. What are the risks for your business?

If your business breaches the applicable rules, civil penalties can reach £45,000 per worker for a first breach and £60,000 for repeat breaches. Criminal offences, sponsor licence consequences and contractual or reputational risks may also arise. A statutory excuse depends on the prescribed checks being carried out correctly by the entity entitled to rely on it.

6. Your questions answered

Does this cover a one-day contractor?

There is no general exemption merely because the engagement is short. Check the legal category and complete any required check before work starts.

Can we rely on an umbrella company?

Obtain written assurance and evidence access, but first assess whether your agency has its own duty under the arrangement.

Are PSC contractors excluded?

Not categorically. Assess the actual contractual chain and the nature of the individual’s services; seek advice on borderline arrangements.

Can we check remotely?

Yes for qualifying Home Office online checks and digital verification routes. Manual checks require examination of original documents in the holder’s presence.

Should we check British and Irish workers?

Apply a consistent checking policy. British and Irish citizens generally have unrestricted permission to work, but the prescribed identity/document route still matters.

7. Where you can find official guidance

• Home Office, Employer’s guide to right to work checks (1 October 2026): https://www.gov.uk/government/publications/right-to-work-checks-employers-guide
• Home Office, Employers’ right to work checklist (1 October 2026): https://www.gov.uk/government/publications/right-to-work-checklist
• Home Office, Extending the Right to Work Scheme — consultation response (30 June 2026): https://www.gov.uk/government/consultations/extending-the-right-to-work-scheme
• Border Security, Asylum and Immigration Act 2025 and commencement regulations: https://www.legislation.gov.uk/ukpga/2025/31/contents

For TRN members: review your contractor supply models now, document checking responsibilities and refresh your onboarding and contractual controls. Obtain specialist advice where the arrangement is unclear.

Please find the Right to Work Changes 2026 - Detailed Legal Briefing attached: A more comprehensive examination of the legislation, statutory responsibilities and potential liabilities across recruitment supply chains. Includes legal references, worked examples, contractual considerations and a recommended compliance action plan.

Visit C2E Law's TRN World Partner Page to learn more about their services and how they support recruitment businesses.