NFRC businesses urged to review right-to-work checks across subcontracting chains
NFRC Members with subcontractors need to review how they check workers’ right to work in the UK. Changes introduced under the Border Security, Asylum and Immigration Act 2025 extend right-to-work checks to a wider range of working arrangements and introduce the possibility of liability further down a subcontracting chain.
The changes are particularly relevant to larger contractors that regularly use subcontractors, labour agencies or other labour providers. Businesses that manage several tiers of subcontractors should pay particular attention, as they may face liability for workers they do not directly employ or may not know are working on their projects.
The rules came into force on 1 October 2026. Businesses should review their existing arrangements rather than assume their current checks and contracts are sufficient.
What’s changed
Previously, right-to-work checks generally applied to employees. The rules now extend to businesses engaging individuals under other working arrangements, including individual subcontractors and certain workers supplied through labour providers.
The changes also introduce extended liability. This means a business that contracts to deliver work or services and then subcontracts that work may, in certain circumstances, be held liable if an individual further down the chain does not have the right to work in the UK.
A business may face a civil penalty of up to £60,000 for each illegal worker. Liability can arise even where the business has no direct contractual relationship with the individual.
Responsibility will depend on the working arrangements and the contracts involved. Businesses should not assume that using a subcontractor automatically transfers all responsibility for right-to-work compliance to that subcontractor.
Which businesses need to pay attention?
The changes are relevant to businesses of all sizes, but the risks are likely to be greatest for those with more complex labour arrangements.
- Larger roofing and cladding contractors that deliver projects using multiple subcontractors.
- Businesses using subcontractor chains, where work passes from one contractor to another and several tiers of businesses may be involved.
- Contractors using labour agencies or labour providers to supply workers for projects.
- Subcontractors that pass work on to other businesses or engage individual subcontractors to complete part of a job.
Smaller businesses are not exempt. A roofing contractor that takes on work from a main contractor and then engages another subcontractor may also need to consider how the new rules apply to its arrangements.
What should businesses do?
Businesses should review their contracts, workforce arrangements and existing right-to-work procedures. The following steps are a useful starting point.
1. Map your subcontracting chain
Identify who carries out work on your projects, including workers supplied through agencies, labour providers and other subcontractors. Establish how many tiers of subcontracting are involved and who engages each individual.
2. Review contracts and responsibilities
Check whether your contracts clearly set out who is responsible for carrying out right-to-work checks and retaining evidence. Where the rules require it, ensure you have the necessary written statements confirming who is undertaking the checks further down the chain.
Do not rely on a general assurance that a subcontractor complies with employment law. Check what your contractual arrangements require and whether they meet the new rules.
3. Check your records
Keep clear records of your contracts and subcontracts, workforce arrangements, right-to-work checks and relevant audit trails. You may need to demonstrate what checks were carried out and who was responsible for them.
4. Review labour providers and subcontractors
Make sure you understand how workers are recruited and supplied to your projects. Work with reputable labour providers that have robust right-to-work checking procedures and can provide the information needed to support your own due diligence.
5. Seek advice where responsibilities are unclear
The rules are complex, particularly where several businesses are involved or contracts include arrangements for workers to be substituted. Review your position with a suitably qualified legal adviser if you are unsure where responsibility lies.
Where can I find more information?
The Home Office has published updated guidance and codes of practice explaining how businesses can comply with the new rules.
- Right to work checks: an employer’s guide – explains how to carry out checks and the steps businesses can take to protect themselves against civil penalties. Use the guidance published on 1 October 2026.
- Home Office right-to-work guidance for employers – provides further guidance on preventing illegal working, acceptable evidence and civil penalties.
- Government response on extending the Right to Work Scheme – explains the policy behind the changes and the government’s approach to implementation.
Businesses should read the current Home Office guidance and check how the rules apply to their own contracts and working arrangements. Where subcontracting chains are involved, early action can help identify gaps in compliance and reduce the risk of significant penalties.
