New rules widen Right to Work responsibilities as recruitment firms prepare for the October deadline
UK recruitment agencies are preparing for significant changes to Right to Work rules that take effect from 1 October 2026, extending the regime to a wider range of working arrangements.
The changes will bring people working under contracts for services, individual subcontractors and certain workers engaged through online matching platforms within the Right to Work framework.
For recruitment businesses supplying temporary and contract workers, particularly across construction, logistics, warehousing and other labour-intensive sectors, the changes could have important implications for compliance processes and client relationships.
Right to Work Rules Are Being Extended
Right to Work checks are designed to ensure individuals undertaking work in the UK have the appropriate immigration status.
Until now, the statutory scheme has principally focused on traditional employer-employee relationships.
From October, its scope will widen to cover additional working arrangements, including individuals engaged under worker contracts and certain subcontracting arrangements.
The government says the changes are intended to close gaps where individuals can currently be engaged outside the existing Right to Work framework.
The reforms are particularly relevant to sectors that make extensive use of temporary, casual and subcontract labour.
Recruitment Industry Faces Compliance Challenge
Recruitment agencies already carry out Right to Work checks on many of the workers they supply, but the expanded regime could create additional considerations throughout labour supply chains.
For recruiters, clients may increasingly seek reassurance that supplied workers have been correctly checked and that appropriate records are being maintained.
This could be particularly important for agencies operating within construction, industrial, logistics, hospitality and other temporary staffing markets.
Research Suggests Some Agencies Are Unprepared
Recent research from Stack Logic surveyed 57 UK recruitment and compliance leaders about their preparations for the October changes.
Of those surveyed, 11 had not heard about the changes, while only 22 said they could explain what was changing.
The research also highlighted continued reliance on manual compliance processes. 33 respondents said they tracked Right to Work status manually, including 13 using spreadsheets.
Meanwhile, 27 respondents said clients had already requested contractual guarantees concerning their Right to Work processes.
Although this is a relatively small survey and should not be taken as representative of the entire UK recruitment industry, it suggests some agencies may need to review their procedures before October.
Penalties Make Right to Work Compliance Critical
Failure to correctly prevent illegal working can carry significant financial consequences.
Under the current civil penalty regime, employers can face fines of up to £45,000 per illegal worker for a first breach, rising to £60,000 per worker for repeat breaches.
Businesses can protect themselves against liability for a civil penalty by carrying out the prescribed Right to Work checks correctly and retaining the required evidence.
With more working arrangements coming within scope, maintaining accurate records and knowing when follow-up checks are required will become increasingly important.
Temporary Recruitment Could Feel the Greatest Impact
The changes are particularly relevant to recruitment businesses managing large numbers of temporary workers and subcontractors.
Construction provides a good example. Complex labour supply chains can involve main contractors, subcontractors, specialist labour providers and recruitment agencies working across the same project.
Similar arrangements exist across logistics, warehousing and other high-volume temporary staffing sectors.
The government has highlighted sectors including construction, food delivery and warehousing when explaining the reasons for extending the Right to Work scheme.
For agencies operating in these markets, demonstrating robust compliance procedures could become increasingly important when securing and retaining clients.
What Should Recruitment Agencies Do Before October?
With the changes taking effect on 1 October, recruitment businesses should review which categories of workers they supply and establish whether additional working arrangements will come within the expanded regime.
Agencies should also ensure employees responsible for registration, onboarding and compliance understand the new requirements.
Systems for recording checks, monitoring expiry dates and retrieving evidence may warrant particular attention, especially where businesses continue to rely heavily on manual processes.
Agencies may also need to discuss responsibilities with clients where several businesses are involved within the labour supply chain.
Right to Work Moves Up the Recruitment Agenda
The recruitment industry already operates within a heavily regulated environment, particularly when supplying temporary and contract workers.
The expansion of the Right to Work scheme adds another area where agencies will need to ensure their compliance procedures keep pace with regulatory change.
With 1 October 2026 approaching, recruitment businesses have a relatively short window to review their processes and ensure the people responsible for Right to Work checks understand the new requirements.
For recruiters supplying large temporary workforces, getting those processes right could be increasingly important for both regulatory compliance and client confidence.
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