Introduction to the changes to the Civil Penalty Regime – what is changing?

Alex Christen

Subject areas: Business Immigration

The UK’s Right to Work regime is undergoing one of its most significant changes since the current framework was introduced in 2008.

We recently wrote about the changes coming into effect on the 1st of October 2026. This article provided an overview of the impending change to the law surrounding the expansion of the civil penalty regime, including the potential implications and considerations for businesses on implementation.

In our series of articles, we will take you through what the changes are in more detail, while providing illustrative examples of who the changes apply to and discussing how you can best prepare.

Why are these changes happening?

Put simply, the Government is strengthening the framework used to address illegal working.

The Government has identified gaps in the existing civil penalty framework, and the process under which employers identify, and prevent, illegal working, particularly where businesses use working arrangements that sit outside the traditional employment relationship.

The growth of agency work, subcontracting, zero-hours arrangements, and the gig economy mean that a significant amount of labour is now provided through models which may not fit neatly within the traditional employer-employee relationship, leading to individuals carrying out work and services where their right to work in the UK remains unchecked.

The changes to the civil penalty regime are intended to close these gaps and strengthen the Government’s ability to prevent illegal working, by requiring businesses to conduct right to work checks on wider groups, thereby identifying more illegal workers at an earlier stage, preventing them from carrying out work illegally in the UK.

What are the changes?

From the 1st of October 2026, section 48 of the Border Security, Asylum and Immigration Act 2025 will effectively extend the requirement on all businesses to conduct right to work checks on wider groups than just employees. Specifically, businesses will have to conduct right to work checks on:

  • individuals engaged under a worker contract (i.e. a contract for services),
  • individual sub-contractors, and
  • those provided via an online matching service (i.e. gig economy workers).

This change has widened the scope of individuals who are subject to right to work checks and, consequently, increased the potential liability for businesses in ensuring that the appropriate checks are carried out.

The changes also introduce a new concept of extended liability, where businesses throughout a contractual chain could be liable for illegal working even where they do not have a direct contractual relationship with the illegal worker.

If a business is issued with a civil penalty for illegal working, it can escape liability if it has either conducted a right to work check (where there is a direct contractual relationship with the illegal worker) or can demonstrate that it has complied with the prescribed requirements (where there is no direct contractual relationship with the illegal worker).

How should businesses stay up to date?

We recommend that businesses take time now to understand how the changes will affect them and put in place appropriate preventative measures to avoid liability. In this series of articles, we will explore the key changes to the right to work regime, explain what they mean for employers, and discuss the practical steps businesses can take to prepare and remain compliant.

Future articles will cover the following areas:

  1. Direct engagement: we will discuss what is meant by this, who is caught by the new provisions, and who is responsible for checking right to work in the UK. We will be exploring the current position, how this will be changing, and how employers can obtain a defence against illegal working penalties.
  2. Extended liability: this is a new concept under the new civil penalty regime. We will explain what extended liability means, when it applies, and how employers can escape liability for illegal working where there is no direct contractual relationship.
  3. Why the right to work changes matter and how employers can prepare: we will explain the potential consequences for businesses who do not comply with the new requirements. We will set out practical steps employers can take now to prepare for the changes and remain compliant, as well as who they can contact for further advice.

If you are worried about whether your company may be affected by the changes to the law, please do not hesitate to contact our immigration team today and we can discuss your specific situation.