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Right to work checks from 1 October 2026: agency guide

By Rec Int.Published 26 October 20265 min read

Seen from above, two warehouse workers check a tablet beside a pallet truck between tall shelves of boxes
Photo by Tiger Lily on Pexels

In short

  • From 1 October 2026 the Right to Work Scheme covers people engaged on a worker’s contract, individual sub-contractors and people found through online matching services, not only employees (Home Office guide).
  • It is not retrospective: what counts is when the contractual arrangement was entered into, not when the work starts (Home Office guide).
  • The civil penalty is up to £60,000 per illegal worker (Home Office guide).
  • This is a plain-English summary for agencies, not legal advice. The Home Office guide is the authority.

On this page

  1. What changed on 1 October 2026
  2. What it means for a recruitment agency
  3. The three ways to check
  4. Can you delegate the check?
  5. TUPE and a change of employer
  6. Right to work checklist for agencies
  7. Where software helps, and where a person decides
  8. Questions people ask
  9. Related reading
  10. Sources

What changed on 1 October 2026

  • Wider scope. The Scheme now covers engaging someone under a worker’s contract, engaging an individual sub-contractor, and online matching services that put a service provider in touch with customers (employer’s guide).
  • Not retrospective. The relevant date is when the contractual arrangement is entered into. An arrangement made before 1 October 2026 is not brought into scope just because the work carries on, and there is no general grace period for new ones (employer’s guide, Annex C).
  • Extended liability. Where a business is under contract to provide work or services to a third party, and uses another employer’s workers to do it, liability for a penalty can now reach that business too (employer’s guide).
  • A final guide. The guide published on 1 October 2026 replaced the draft of 11 September 2026. It adds a clarification on TUPE transfers, how to sign up for updates from the Home Office, and Annex C, a set of questions and answers (employer’s guide).
  • An updated code. The code of practice on preventing illegal working was updated the same day (GOV.UK).

What it means for a recruitment agency

The guide’s own examples answer the common agency questions. It calls an agency that supplies temps an “employment business”.

  • Temps on a contract for services: you check. In Example 2, an employment business supplying temps on a contract for services is their employer for the Scheme, so it is responsible for the check (employer’s guide).
  • Temps working inside a client’s own operations: the check stays with you. In Example 12, extended liability does not apply, and responsibility stays with the employment business. Annex C adds that, in a standard agency supply, the hirer is not meant to repeat the check as routine (employer’s guide).
  • Contractors through their own limited company: it depends. In Example 6, a client contracting with a contractor’s personal service company for services does not need to check. But the guide says no single factor is decisive, so look at how each arrangement works in practice (employer’s guide).
  • Repeat assignments: one check can cover them. A fresh check is not needed before each assignment while the same employer holds a valid statutory excuse and does any follow-up check before the worker’s permission ends (employer’s guide).

The three ways to check

To have a statutory excuse, the check must be one of these, done before the work starts (employer’s guide):

  • A manual check of the person’s original documents.
  • A Home Office online check, using the person’s share code.
  • A check through a right to work digital verification service provider (a RtW DVSP), registered with the Office for Digital Identities and Attributes.

You cannot insist on one method: the guide says employers “cannot mandate the method” a person uses to show their right to work, and GOV.UK says you must not discriminate against anyone because of where they are from.

Can you delegate the check?

Yes. The guide allows the check to be delegated to staff, including agency workers, who work under your control and direction and are accountable to you. But the employer stays liable for a penalty if the check was not carried out as set out. The same goes for a digital verification provider: the employer, not the provider, remains responsible for the check meeting the requirements (employer’s guide).

TUPE and a change of employer

TUPE does not apply to people engaged as workers under a contract for services. If, on or after 1 October 2026, a new employer takes on such a worker after a change of employer, it must do a right to work check before the work starts if it wants a statutory excuse (employer’s guide).

Right to work checklist for agencies

  • List every temp and contractor arrangement entered into since 1 October 2026, and note how each one is set up.
  • Decide who does the check for each person, and do it before the work starts.
  • Keep a dated copy of each check, as the guide sets out.
  • Diary a follow-up check for anyone whose permission to work has an end date.
  • Give every candidate the same fair chance to prove their right to work, as the guide’s section on avoiding discrimination expects.
  • Sign up for updates from the Home Office, as the guide explains, so you hear about the next change.

Where software helps, and where a person decides

Software can take the admin around the check off your team: collecting share codes and uploads, reading documents, spotting a name or date that does not match your record, tracking end dates and sending reminders. Our guide to only opening the documents that need you shows how.

The check itself is one of the three routes above, carried out by your own staff or by a registered RtW DVSP, and a named person in your compliance team stays responsible for it (employer’s guide). Other software that flags a problem helps that person; it does not count as the check.

A woman at a wooden desk works through a pile of paper files beside her laptop
Photo by Pavel Danilyuk on Pexels

Questions people ask

Are the right to work changes retrospective?

No. The Home Office guide says the measures are not intended to be retrospective: what counts is when the contractual arrangement was entered into, not when the work starts or continues.

Do we need to check limited-company contractors?

It depends. In the guide’s Example 6, a client contracting directly with a personal service company for services does not need to check. But the guide says there is no blanket exclusion for contractors who work through their own company, and no single factor settles it, so look at how each arrangement works in practice and read the Home Office guide for your case.

What is the maximum penalty for illegal working?

A civil penalty of up to £60,000 per illegal worker, and in serious cases a criminal conviction with a prison sentence of up to five years and an unlimited fine (Home Office guide).

Related reading

  • Only open the documents that need you
  • Stop re-typing into client portals
  • Your first automation, on one page

Sources

  • Right to work checks: an employer’s guide (1 October 2026) Home Office, GOV.UK
  • Code of practice on preventing illegal working: Right to Work Scheme for employers Home Office, GOV.UK
  • Check a job applicant’s right to work: use their share code GOV.UK
  • Checking a job applicant’s right to work GOV.UK

If you would like to talk through how your compliance team could spend less time on document admin, book a discovery call.

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