United Kingdom: Right to Work Scheme Expanded, Implementation Guidance Forthcoming

The situation 

On December 2, 2025, the UK government formally expanded the scope of its Right to Work (RTW) Scheme by widening the meaning of “employer” and the working arrangements to which it applies beyond direct employer/employee relationships. Practical implementation of the new rules, however, awaits publication of implementation and operational guidelines – which is expected sometime after December 10, 2025. 

A closer look 

• Expanded scope. Businesses are now treated as “employers” under the RTW Scheme in the following circumstances:  
  • Worker’s contract:  
    • Where the individual is engaged by the business under a worker’s contract (not a contract of service or apprenticeship) and the business is not a customer of the individual.  
    • An example of this situation includes where Company A engages Worker A to personally perform work for Company A or another company under a worker’s contract (not a contract of services or apprenticeship) and Company A is not a client or customer of Worker A.  
  • Sub-contractors:  
    • Where the individual is engaged to work on behalf of the business via its sub-contractor and the business itself is not a customer of the individual.  This establishes a form of chain liability (i.e. liability for all in the labour hiring chain). 
    • An example of this situation includes where Company A enters into a contract with Customer Z to provide construction services. Company A has a sub-contract with Company B for Company B to deliver the construction for Customer Z. Both Company A and B would be considered “employers” of the workers sent by Company B to do the construction work under the expanded RTW Scheme.  
  • Online matching service: 
    • The individual has been hired through an “online matching service” and the business is the online matching service who charges a fee or commission in return for making the match.  
    • An example of this situation includes where Company A provides an online service that keeps a register of cleaning professionals. The platform allows potential clients or customers to be matched with the cleaning professionals, and Company A charges a fee or commission for this. Customer Y reaches out to Company A for cleaning services on this platform and, as a result, Worker A enters into a contract with Customer Y to provide the service. Company A is considered an “employer” to Worker A under the expanded RTW Scheme.   
• Out of scope. Entities who are recipients of the services of employees or workers as “customers” are not liable under the RTW Scheme. The RTW Scheme and its broadened scope are not intended to apply to private households directly receiving services as customers of tradespeople.   

Impact 

• • Expanded scope. This change means that businesses are liable to fines for “employing” illegal workers where the workers are direct employees (staff under a contract of employment, service or apprenticeship), but also individuals who are not employees but who are nevertheless engaged to work for the business (including gig economy workers and those working through complex supply chains) as well as individuals hired through online matching services. Businesses must more closely review their supply chains and service and contract delivery models to identify who needs to be checked and who takes responsibility for such checks.  
  • Expanded risk. This expansion of scope means greater complexity and compliance risk.  This is a significant risk factor for businesses, given that penalties for hiring illegal workers are severe, including a fine of up to GBP 60,000 per illegal worker. 

Background 

• • RTW Scheme. The RTW Scheme seeks to prevent illegal working by requiring "employers" to conduct RTW checks and imposing fines if they employ workers who do not have permission to do so.  
  • Modern-day circumstances. By bringing new working arrangements within the scope of the RTW Scheme, the government seeks to ensure the RTW Scheme applies to all modern-day circumstances in which workers are hired.  
  • Broader compliance activity. This policy change comes amid increases in penalties for businesses hiring workers who do not have the right to work as well as a general increase in government compliance activity. 

Looking ahead 

Implementation and operational details regarding the revised RTW Scheme (namely, the Guidance and Codes of Practice) are expected to be published after the conclusion of the current RTW consultation process, due to end on December 10, 2025. The updated Guidance will assist in showing how the changes will be implemented on a practical basis. We will report on related developments.  

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.