Right to work changes: what they mean for Living Sector operators

The Government's proposed expansion of the UK's right to work regime could have significant implications for the Living Sector, particularly for those operators relying on flexible labour models. Under current law, employers must verify an individual's right to work in the UK before employment begins, with civil penalties of up to £60,000 per illegal worker and potential criminal liability for non-compliance. Historically, these obligations have applied primarily to direct employees.

The Border Security, Asylum and Immigration Act 2025, which received Royal Assent on 2 December 2025, expands liability for illegal working well beyond standard employment relationships. Until recently, there was no indication as to when these changes would take effect. However, on 15 April 2026, the Home Office quietly published an updated draft version of its ‘Code of Practice for employers - avoiding unlawful discrimination while preventing illegal working’. This document, whilst not an updated version of the main Code of Practice on the civil penalty regime (which has yet to be published), suggests that the new regime will apply from 1 October 2026. This has yet to be confirmed by the Home Office. 

Proposed expansion of right to work checks

It is expected that right to work checks will extend beyond direct employees to cover casual workers, zero-hours workers, individual contractors and consultants, and individual service providers registered with online matching platforms. Crucially, a business can be treated as an employer even where there is no direct contract with the individual, and even where the business does not know the individual is providing the work or services. 

Reflecting these upcoming changes, the Home Office updated its guidance for sponsor licence-holders in March 2026, introducing a new obligation on sponsors of overseas workers to check that any worker they wish to "directly engage" has permission to work in the UK, whether sponsored or not. The scope of this phrase remains unclear, and legal practitioners have written to the Home Office seeking clarification.

Discrimination and compliance risks

Alongside expanded checking requirements, the draft Code of practice for employers emphasises the need to avoid discriminatory practices. Employers must carry out checks consistently and fairly, without making assumptions based on nationality or ethnicity. Non-compliance risks are significant and range from discrimination claims and regulatory action to criminal prosecution with custodial sentences of up to five years and the exercise of business closure powers.

Practical steps for Living Sector businesses

The Home Office's enforcement crackdown is already well under way. In November 2025, the Home Office conducted a national enforcement operation resulting in 171 arrests of gig economy workers, targeting sectors including construction, hospitality and care.

Living Sector operators often rely on broad networks of non-employee workers, including concierge staff, cleaners, maintenance contractors, security personnel, seasonal leasing teams and third-party service partners.  This may increase their exposure under the new regime.

Practical steps which can be taken now include: 

• Auditing the composition of workforces and the logistics of carrying out checks across the wider group of individuals caught by the new regime
• Identifying where non-employee labour is used.
• Reviewing onboarding processes
• Assessing the robustness of their relationships with third-party suppliers
• Reviewing staffing agency agreements to ensure they include express terms requiring agencies to carry out right to work checks on all individuals supplied and to provide evidence that such checks have been completed.

Please contact Emily McPartland or your usual Charles Russell Speechlys LLP contact if you have any queries.