Tackling illegal working: The future of right-to-work obligations

Our business immigration experts take a look into some of the changes on the horizon regarding illegal working, and the future of right-to-work obligations.

Current legal position

Under current legislation, all employers have a duty to prevent illegal working by ensuring that access to work is reserved for individuals who are eligible and have lawful immigration status in the UK. Since 2008, employers fulfil this duty by conducting right-to-work checks before employing someone under a contract of employment. These checks confirm that the individual is not disqualified from carrying out the work in question due to their immigration status.

If the right-to-work check is carried out in accordance with Home Office guidance, the employer obtains a statutory excuse against liability for a civil penalty. In simple terms, if it is later discovered that you have employed someone who does not have the right to work, but you completed the checks correctly, you will not receive a civil penalty for that illegal worker.

This is a crucial step in every employer’s onboarding process, especially now that penalties for illegal working have tripled in recent years, amounting to £40,000 for initial breaches (per employee) and up to £65,000 for repeated breaches (per employee).

Although the guidance clearly states that this duty applies only to individuals employed under a contract of employment (with an exemption for sponsor licence holders, who must carry out checks for each sponsored worker), it strongly encourages businesses to ensure that their contractors and labour providers conduct right-to-work checks in accordance with the guidance, or to carry out these checks themselves.

The proposed reform

The government has launched a consultation aimed at extending right-to-work obligations beyond traditional employers. This forms part of its ‘Plan for Change’ to restore order to the immigration system and “clamp down on illegal working.”

Under the proposals, the duty to carry out right-to-work checks would extend to businesses engaging:

• gig economy and zero-hours workers
• individual subcontractors
• online matching services that connect service providers with clients for a fee.

The proposal suggests that the affected sectors may include construction, food delivery, beauty salons, courier services, and warehousing. Civil and criminal sanctions for non-compliance would then apply in these circumstances.

The consultation is ongoing, and the government is accepting responses from the public until 11:59pm on 10 December 2025.

What does this mean for your business?

The proposed changes represent a significant shift in right-to-work obligations. Currently imposed on employers, these duties would also extend to ‘engagers’ – businesses that rely on flexible labour models, such as gig platforms, subcontracting chains, or freelancers.

If implemented, businesses will need to:

• update verification processes to cover all individuals engaged under worker contracts or similar arrangements
• review contracts with third parties to ensure compliance obligations are clearly addressed
• communicate responsibilities to contractors and labour providers.
• prepare for enforcement – civil and criminal penalties will apply for non-compliance.

If you need any advice on compliance with right to work obligations, or would like to know more about the upcoming reform, please don’t hesitate to get in touch with our team of experts.

Our Legal 500-rated employment law & business immigration team are experts in guiding businesses of all sizes and backgrounds through a range of issues that may arise.