If your organisation uses contractors, freelancers, agency workers or outsourced labour, a recent change to the law could affect your Right to Work obligations. Since 1 October 2026, businesses may need to consider Right to Work checks in a wider range of circumstances than before.

The expansion of the UK's Right to Work Scheme does not replace existing checks for employees. Instead, it extends potential compliance obligations and civil penalty liability to certain workers, individual subcontractors, online matching arrangements and some labour supply chains.

Importantly, the focus is no longer just on job titles or contractual labels. Whether someone is described as a consultant, freelancer, self-employed contractor or subcontractor is not, by itself, enough to decide whether the rules apply. The key question is whether the individual is personally providing work or services and whether the arrangement falls within the expanded scheme.

For employers, this means now is the time to review contractor arrangements, labour supply chains and onboarding processes to find where Right to Work checks may be needed and reduce the risk of compliance issues.

Quick Summary

• Right to Work checks are no longer only an employee issue.

• Since 1 October 2026, the scheme may apply to certain workers, subcontractors and labour supply arrangements.

• Calling someone a freelancer or contractor does not automatically place the arrangement outside the rules.

• A correctly completed Right to Work check may provide a statutory excuse if an individual is later found to be working illegally.

• Employers should review their workforce and supply chain arrangements to understand whether the expanded scheme applies

• Right to Work checks must be applied consistently and without discrimination, not just to workers suspected of lacking permission to work.

When Did the Rules Change?

The expanded scheme came into force on 1 October 2026 under provisions introduced by the Border Security, Asylum, and Immigration Act 2025. The new Code applies to all new employment commencing on or after 1 October 2026, together with any repeat Right to Work checks undertaken on or after that date.

Who Could Be Affected?

Employees

The existing Right to Work checking requirements continue to apply to employees.

Workers Under a Worker's Contract

Individuals who personally undertake work or services under a worker's contract may fall within scope. This can include casual workers, temporary staff, agency workers and some zero-hours arrangements.

Freelancers and Independent Contractors

Individuals providing services personally may require Right to Work checks depending on the facts of the arrangement. The description used in the contract is not conclusive.

Individual Subcontractors

An individual subcontractor who personally provides work or services may fall within scope, even where the written agreement describes them as self-employed or an independent contractor.

Agency Workers

Responsibility for carrying out checks will depend on the arrangement. Businesses should not assume that an agency's checks automatically provide their own statutory excuse.

Labour Supplied Through Intermediaries

Where labour is supplied through employment businesses, agencies, umbrella companies or other intermediaries, checking obligations and liability may arise depending on the contractual structure.

Personal Service Companies (PSCs)

Using a personal service company does not automatically place an arrangement outside the expanded scheme. Businesses should assess whether they are contracting with a genuine independent business or engaging a named individual who is personally providing labour.

Online Matching Platforms

Some online marketplaces and matching services may fall within the scheme where they provide details of individual service providers to customers, and the relevant statutory conditions are met. Platforms that simply provide advertising may be treated differently.

Can Businesses Be Liable for Workers Further Down the Supply Chain?

Yes, businesses can be liable in some supply chain arrangements.

One of the most significant changes is the introduction of extended liability in certain labour supply and subcontracting chains. In some circumstances, organisations higher up the contractual chain could face liability for illegal working carried out by an individual engaged through another organisation.

However, liability does not automatically transfer to every organisation in the chain. The legal tests are arrangement specific. The position should be assessed carefully where arrangements involve labour supply, personal service, substitution arrangements, online platforms, or multiple layers of subcontracting.

What About Substitution Clauses?

A contractual right of substitution does not automatically remove Right to Work obligations.

Where an individual is engaged but provides a substitute to carry out the work, extended liability may arise in certain circumstances. Businesses should review substitution arrangements carefully and ensure contracts clearly address responsibility for compliance.

Will Genuine Outsourced Services Be Affected?

Not necessarily, but it depends on the arrangement.

A genuine business-to-business service arrangement may fall outside the direct Right to Work checking requirements where a supplier is delivering a defined service using its own workforce and management structure.

Businesses should distinguish between:

A supplier delivering a genuine, outsourced service

A supplier providing named individuals or labour to work under the customer's direction

The second arrangement creates a greater risk of direct or extended Right to Work obligations.

What Should Employers Do Now?

Review Your Workforce

Find anyone providing services who is not a traditional employee, including:

• Workers

• Freelancers

• Contractors

• Consultants

• Agency workers

• Casual workers

• Zero-hours workers

• Self-employed individuals

• Individual subcontractors

Audit Supplier Relationships

Review arrangements involving:

• Outsourced services

• Labour providers

• Recruitment agencies

• Umbrella companies

• Subcontractors

• Labour supply chains

Review Contracts

Consider whether agreements adequately address:

• Right to Work compliance obligations

• Evidence requirements

• Audit rights

• Onward subcontracting

• Substitution arrangements

Review Recruitment and Onboarding Processes

Ensure checks are carried out before work starts where the arrangement falls within the expanded scheme. Right to Work checks must be applied consistently and without discrimination, not just to workers suspected of lacking permission to work.

Frequently Asked Questions

What is the new Right to Work rules from October 2026?

The scheme has expanded to cover a wider range of working arrangements, including certain workers, individual subcontractors, online matching arrangements and some labour supply chains.

Do freelancers need Right to Work checks?

Potentially. Whether a check is required depends on the reality of the arrangement and whether the individual is personally providing work or services within the expanded scheme.

Are contractors exempt from Right to Work checks?

No. Describing someone as a contractor does not, by itself, place the arrangement outside the scheme. The facts of the arrangement must be assessed.

Do agency workers need Right to Work checks?

Responsibility depends on the structure of the arrangement. Businesses should determine who has responsibility for compliance and avoid assuming another organisation's checks provide full protection.

Can a business be fined if a subcontractor uses an illegal worker?

In some circumstances, yes. Extended liability provisions may expose organisations higher up a contractual chain to liability, although this will depend on the structure of the arrangement and the statutory tests that apply.

Do personal service companies remove Right to Work obligations?

Not automatically. Businesses should assess whether they are contracting with a genuine independent business or engaging an identified individual who is personally providing labour.

How Irwell Law Can Help

The expansion of the Right to Work Scheme creates new compliance risks for employers, labour providers, recruitment businesses and organisations using contractors or outsourced services.

Our employment law specialists can help you: * Review your workforce arrangements

• Assess contractor and supplier relationships

• Audit Right to Work processes

• Update contracts and policies

• Reduce the risk of civil penalties and loss of statutory excuse protection

Need Right to Work compliance advice now that the October 2026 changes are in force?

Contact Irwell Law for specialist employment law support for employers, contractors and labour supply arrangements.

Disclaimer: This article is intended as general information only and does not constitute legal advice. The application of the Right to Work rules will depend on the specific facts of each arrangement. Bespoke legal advice should be obtained before acting.

The Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) governs the relationships between employers, workers and trade unions and governs how unions secure recognition in the workplace.

What trade union changes does the Employment Rights Act 2025 introduce?

The reforms introduced under the Employment Rights Act 2025 (ERA 2025) amend Schedule A1 of TULRCA and aim to improve the recognition process. These changes affect employers and recognised trade unions and affect how terms are negotiated, how disputes are managed and how employers can communicate with employees without creating avoidable exposure.

From 30 October 2026, there are new rights and obligations on employers, including:

• A duty to inform workers of the right to join a trade union
• A new right for officials of qualifying unions to enter workplaces and communicate with workers
• New rights to accommodation and facilities for officials of recognised unions
• Improved trade union recognition rules

These measures improve trade union activity and further protect the legal framework around union involvement in the workplace and sit alongside the other trade union reforms that took place in April 2026.

The Duty to Inform Workers

The new reforms introduce a new duty on employers to inform their workers of their right to join a trade union. This new reform requires employers to actively ensure that workers are aware of their right to join a trade union. It is not enough to assume that employees know that they can join a union. This can require employers to update their documentation and reassess their employee processes.

Do trade unions have unrestricted access to workplaces?

Recognition is the core concept. Statutory recognition does not give unions unrestricted access to a business. Rather, it sets out principles intended to equally balance the interests of employers and unions. Employers should take reasonable steps to facilitate access and should not refuse access altogether unless it is reasonable in all the circumstances. On the other hand, unions should not unreasonably interfere with the employer’s business.

The new framework is particularly significant in situations where the employer and trade union cannot agree terms of access. The matter can be referred to the Central Arbitration Committee (CAC), which oversees the legal framework and has powers to determine access arrangements. It can also issue fines prescribed under legislation up to the sum of £500,000 for breaches of statutory agreements. Employers should engage with the access request and consider what arrangements can be made without disrupting the business. Employers should not assume that refusing to engage with an access request will make the issue disappear. One particular change is that where a recognition application is received, the bargaining unit will be frozen subject to the statutory rules.

Rights to Accommodation

The reform also requires employers to provide reasonable accommodation and facilities for union representatives carrying out their duties. This includes access to appropriate space and access to workplace communication systems where necessary. Employers are not required to provide whatever facilities are required; the reform is concerned with what is reasonable in the circumstances. Requests should be considered properly and should not be rejected automatically.

When can employers refuse trade union workplace access applications?

Employers are not required to accept all access applications. The application must be refused where there are genuine data protection concerns or where there is a risk of a criminal offence, national security or prejudice caused by the acceptance of the application. Employers may be able to refuse an application where there are health and safety concerns or in circumstances where they have received multiple outstanding requests.

Smaller employers who have fewer than 21 workers across their workplaces are exempt from the new provisions. This does not give an automatic right to ignore trade union law as other employment obligations can still apply depending on the circumstances.

What is the Central Arbitration Committee’s role in trade union disputes?

Where no agreement is reached, the trade union can apply to the CAC for determination. The CAC is an independent tribunal, and its general duty is to promote fair arrangements in the workplace. The CAC can deal with applications for recognition and derecognition, disclosure of information for collective bargaining, access determinations and enforcement.

A determination made by the CAC takes effect as if the parties had entered into an access agreement. Parties can vary and revoke an access agreement; however, there is a crucial requirement for any changes to be made in writing. A revocation or variation will not be effective unless it is made in writing and the parties have notified the CAC.

Next Steps

Trade union recognition applications must be taken seriously. The process has legal requirements and strict deadlines. Any attempts to interfere improperly can cause employers serious problems.

The new reforms give employers a reason to prepare for the upcoming developments. The correct approach depends on the size of the organisation and the arrangements already in place. HR materials must be updated to reflect the new duty to inform workers about trade union rights. Senior staff members should be offered the necessary training to avoid unlawful interference or detriment to workers. The biggest mistake would be to treat these reforms as something that only matters once a union appears at the workplace. The best approach is to review your current arrangements now.

Asad Farooq is a Legal Consultant at Irwell Law who specialises in defending claims at the Employment Tribunal.

Need to ensure you are compliant? Contact the team at [Irwell Law ](https://www.irwell-law.com/tribunal-defence)(TribunalEdge@irwell-law.com or info@irwell-law.com).

Frequently asked questions

Does statutory trade union recognition give unions unrestricted workplace access?

No. Recognition alone does not give unrestricted workplace access. Qualifying independent trade unions can request physical or digital access without already being recognised. Access is subject to statutory conditions and the terms of the relevant agreement or Central Arbitration Committee (CAC) determination.

Must employers provide every facility requested by union representatives?

No. For employees covered by the relevant statutory time-off provisions, the law requires employers, on request, to provide accommodation and facilities that are reasonable in all the circumstances for the relevant union duties or training. The representative’s role and statutory conditions matter, and employers must have regard to any relevant Acas Code of Practice.

How should employers prepare for trade union reforms?

General preparation may include reviewing existing union arrangements, HR materials and training needs. The government’s stated intention is for the duty to give workers a written statement about their right to join a trade union to start on 1 January 2027. The final requirements and commencement provisions need to be checked before implementation.

How long do employers have to respond to a trade union access request?

The statutory process generally requires a response within 15 working days of receiving an access request. If the request is not accepted in full, a 25-working-day negotiation period follows the employer’s response. The applicable timetable depends on the statutory rules and any permitted extensions.

Do trade union workplace access rules apply to small employers?

The CAC cannot impose a statutory access agreement where the employer has fewer than 21 workers under the applicable counting rules. This threshold does not create an exemption from all trade union law. Other obligations may still apply.

Disclaimer: This article is intended as general information only and does not constitute legal advice. The application of trade union recognition and workplace access rules, and related employer obligations under the Employment Rights Act 2025, will depend on the specific circumstances of each organisation. Bespoke legal advice should be obtained before acting.