United Kingdom: Draft Code on Expanded Right to Work Scheme Clarifies Employer Obligations
July 17, 2026
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At a Glance
- The UK government has published a draft Code of Practice on Illegal Working (‘the Code’) setting out details of how the expanded Right to Work (‘RTW Scheme’) will be operationalised. The Code will be effective from October 1, 2026.
- Although the working arrangements that will fall within scope of the RTW Scheme have expanded, the Code confirms that responsibility for conducting prescribed right to work checks continues to rest with the employer that has the direct contractual relationship with the worker.
- The Code also implements the concept of ‘extended liability’, allowing civil penalties to move through the contractual chain beyond the direct employer if the direct employer cannot be identified or fails to comply.
- For businesses that are not direct employers, the Code prescribes contractual provisions, substitution controls, and identity verification systems and processes that ensure right to work compliance for the establishment of a statutory excuse.
- Moreover, the Code now permits employers to outsource impersonation checks to a right to work digital verification service provider using facial recognition technology.
- Employers should review their right to work compliance processes, contractual arrangements with labour providers and identity verification procedures ahead of the expanded scheme’s implementation on October 1, 2026.
- Update - July 17, 2026: As anticipated, on July 15, 2026, UK authorities issued a draft Employer’s Guide to Right to Work Checks providing examples, details of evidential requirements, and operational guidance on how employers and businesses liable to extended liability may establish and maintain a statutory excuse. We will update this alert when the final guidance is published.
The situation
The UK government published a draft Code of Practice on Illegal Working (‘the Code’) setting out details of how the expanded Right to Work (‘RTW scheme’) will operate, effective October 1, 2026.
The Code confirms that responsibility for conducting prescribed right to work checks continues to rest with the employer that has the direct contractual relationship with the worker but also introduces the concept of extended liability.
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- Update - July 17, 2026: As anticipated, on July 15, 2026, UK authorities issued a draft Employer’s Guide to Right to Work Checks providing examples, details of evidential requirements, and operational guidance on how employers and businesses liable to extended liability may establish and maintain a statutory excuse. We will update this alert when the final guidance is published.
Background
On December 2, 2025, the UK government introduced primary legislation intended to expand the scope of its RTW Scheme by widening the definition of ‘employer’ beyond traditional employer–employee relationships. Secondary legislation was subsequently brought before Parliament in June 2026 to bring into force the expanded RTW scheme. The Code published now sets out how that expanded scheme will operate.
Looking ahead
Although the new Code provides significantly more detail on the operation of the expanded RTW Scheme, it also refers throughout to supporting employer guidance, including examples explaining how the new provisions are intended to operate in practice. This guidance is expected to be published before October 1, 2026. We are monitoring the situation and will provide further updates as they arise.
Fragomen can assist with internal audits and evaluations. Our dedicated WorkRight team also provides Digital Verification Service checks to make the process of validating right to work smoother. This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.
