Employer’s Guide to Right to Work Checks

Do UK employers need to carry out right-to-work checks on contractors and consultants?

On 20 May 2026, the Home Office issued a U-turn, removing right-to-work check requirements for employers, confirming that unsponsored, non-employed workers they ‘directly engage’, i.e. contractors and gig workers, is not required. Previously, this requirement was set in the guidance published in March 2026 and amended in April 2026. The guidance now clarifies that UK employers must undertake right-to-work checks on all employees and sponsored workers.

Current position

Regardless of whether the workers are engaged by sponsored employees, employers must check and confirm that any (directly or indirectly) sponsored worker that they wish to sponsor has the appropriate immigration permission to work in the UK and do the work in question before they commence their employment. If you are an employer in the UK, you are obligated to ensure that you conduct right-to-work checks on your sponsored workers and all employees, including if they are British/Irish or someone who has settled in the UK. You must also conduct follow-up checks on workers who have time-limited right to work in the UK when necessary.

Consequences of not carrying out right-to-work checks

The practical consequences of failing to check can be severe: civil penalties of up to £45,000 per illegal worker for a first breach and up to £60,000 per illegal worker for repeat breaches, criminal prosecution in serious cases, sponsor licence action, business disruption, regulatory consequences and reputational harm.

Persistent or serious non-compliance may lead to wider sanctions, including business closure notices, compliance orders and director disqualification. These measures are particularly relevant where an employer repeatedly uses illegal labour or fails to address compliance breaches after prior enforcement action.

A civil penalty or wider evidence of immigration non-compliance may affect the organisation’s ability to hold or obtain a sponsor licence. For existing sponsors, defective right-to-work processes may trigger Home Office scrutiny of record-keeping, reporting, genuine vacancy, salary and role-compliance obligations. The practical consequences can include suspension, downgrading or revocation of the licence.

How can employers prepare?

Employers should adopt a risk-based but consistent process for all categories of labour. A robust approach will usually include:

• Classify the engagement correctly:identify whether the individual is an employee, worker, self-employed consultant, agency worker, secondee, volunteer or sponsored worker;
• Conduct prescribed checks for employees:complete right-to-work checks before employment starts, using the appropriate manual, digital or online route;
• Check sponsored workers and retain evidence:ensure the file satisfies both right-to-work and sponsor licence record-keeping requirements;
• Build controls into supplier contracts:require agencies, consultancies and outsourcing providers to conduct checks, retain evidence, notify changes and submit to audit;
• Do not rely solely on contractual labels:assess the reality of the working arrangement where a contractor is embedded in the business;
• Train hiring managers:ensure managers understand that work cannot start until the required checks are complete;
• Diarise follow-up checks:maintain a central system for visas, time-limited permission and Positive Verification Notices;
• Apply checks consistently:avoid selective checking based on nationality, ethnicity, accent or assumptions about immigration status; and
• Retain evidence securely:keep copies for the required period and ensure the records are readily available for audit or Home Office inspection.

Gherson insight

The consequences of failing to carry out right-to-work checks are no longer confined to administrative inconvenience. The exposure can include substantial civil penalties, criminal liability, sponsor licence suspension or revocation, business closure measures, director disqualification, licensing consequences, supply-chain disruption and reputational damage.

Right-to-work checks are mandatory in practical terms for direct employees because they are the mechanism by which an employer establishes a statutory excuse against civil penalty liability. For contractors and consultants, the legal position depends on the nature of the engagement. Genuine self-employed contractors are not treated in the same way as direct employees for the statutory excuse regime, but checks may still be required for sponsor compliance and are strongly advisable for broader risk management.

The safest operating model is to treat right-to-work compliance as a workforce-wide control. Employers should complete prescribed checks for employees, impose equivalent contractual obligations on suppliers, retain evidence for sponsored and supplied workers where required, and scrutinise any contractor arrangement that may in substance amount to employment. The financial, criminal, licensing and reputational consequences of getting this wrong are now too significant for right-to-work checks to be treated as a narrow onboarding formality.

Frequently Asked Questions

Do UK employers need to carry out right-to-work checks on contractors and consultants?

The Home Office guidance issued on 20 May 2026 confirms that employers are not required to carry out right-to-work checks on genuine unsponsored contractors, consultants and other non-employed workers they directly engage.

Who must employers carry out right-to-work checks on?

Employers must conduct right-to-work checks on all employees and sponsored workers before they commence work, regardless of whether they are British, Irish or hold settled status.

What happens if an employer fails to carry out right-to-work checks?

Failure to comply can result in civil penalties, criminal liability in serious cases, sponsor licence action, business disruption and reputational damage.

Can right-to-work compliance affect a sponsor licence?

Yes. Poor right-to-work procedures may lead to increased Home Office scrutiny and could result in a sponsor licence being suspended, downgraded or revoked.

Should employers still verify the status of contractors and consultants?

Although checks are not generally required for genuine self-employed contractors, businesses should still assess the nature of the engagement and ensure appropriate contractual controls are in place to manage immigration compliance risks.

What practical steps can employers take to reduce compliance risks?

Employers should correctly classify workers, conduct prescribed checks for employees, maintain records for sponsored workers, implement supplier compliance obligations, train hiring managers and apply checks consistently across the workforce.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

This article was first published in 2024 and has been updated in June 2026. 

©Gherson 2026