Why contractor oversight needs to move from contractual assumption to verifiable control with the introduction of the Border Security, Asylum and Immigration Act 2025: Expanded Right to Work Obligations.
Right to Work compliance is no longer simply an HR check at the point of hire. From 1 October 2026, organisations using contractors, subcontractors and outsourced labour will need to understand who is working across their Supply Chain, who verified them and whether that evidence remains defensible.
Key Changes
- Right to Work checks must be completed before work starts.
- Checks can be carried out using the Home Office online service, approved digital verification services, or manual document checks where permitted.
- The changes are designed to address the growth of the gig economy, contingent labour and subcontracting arrangements.
- Businesses that fail to carry out compliant checks can face civil penalties of up to £60,000 per illegal worker for repeat breaches.
- Employers must apply checks consistently to avoid unlawful discrimination.
Key Challenges for Organisations
1. Reduced Visibility of Who Is Actually Delivering Services
Use of contractors, subcontractors and agency workers can make it harder to confirm who is delivering services and whether checks are complete.
2. Increased Due Diligence Requirements
Businesses will need stronger assurance that suppliers use compliant recruitment and onboarding processes, including:
- Supplier audits and enhanced pre-contract checks.
- Evidence of Right to Work procedures and ongoing monitoring.
3. Stronger Contractual Controls
Supplier agreements may need clearer immigration compliance provisions, including:
- Right to Work clauses, audit rights and reporting duties.
- Indemnities and immediate breach notification.
4. Increased Administrative Burden
Responsibility will extend beyond HR to procurement, vendor management and operations, particularly where labour is outsourced
5. Higher Risk of Supply Chain Disruption
Supplier non-compliance may cause:
- Delivery delays and project disruption.
- Worker replacement or emergency supplier changes.
This is particularly relevant to labour-dependent sectors such as facilities management, construction, cleaning, maintenance and care.
6. Governance and Assurance Challenges
Boards and senior leaders will need assurance that:
- Controls and supplier risk assessments are effective.
- Monitoring is robust and evidence is inspection ready.
The legislation shifts Right to Work compliance from a recruitment activity to a broader Supply Chain governance issue, requiring organisations to demonstrate greater oversight of the labour practices of contractors, subcontractors and service providers.
Four actions to take now
- Map the workforce beyond payroll. Identify every contractor, subcontractor, agency and outsourced service arrangement that may bring individuals into scope.
- Strengthen contracts. For arrangements entered into on or after 1 October 2026, review flow-down obligations, audit rights, substitution controls, verification standards and evidence-retention requirements.
- Test the evidence trail. Confirm that checks can be traced to the correct worker, employer, date, method and approved verification provider.
- Move to continuous assurance. Build alerts, ownership and escalation into supplier governance rather than relying on periodic spreadsheet reviews.
How Vantify can help
Vantify Supply Chain gives organisations a clean, current view of suppliers, contractors and service providers in one place. Real-time compliance status, document and certification tracking, financial health monitoring, alerts and expert-led assessment help teams identify gaps before work starts.
Connected visibility across the wider Vantify ecosystem supports clearer ownership, stronger audit trails and earlier intervention when standards are not met.
Speak to Vantify about creating a clearer, more defensible view of contractor and service-provider compliance before the new regime takes effect.
Find out more: here.
This briefing is for general information and does not constitute legal advice. Organisations should review the final legislation, statutory guidance and their specific contracting arrangements with qualified advisers.
Vantify considers the new legislation an important strengthening of existing workforce and supply-chain controls rather than the creation of an entirely new risk. Organisations should now move beyond assuming that contractors and service providers have completed the necessary checks and develop a clear, verifiable view of compliance across their extended workforce. This means embedding Right to Work requirements into supplier onboarding, contractual controls, audit programmes and ongoing monitoring. Vantify Supply Chain can support this wider governance approach by bringing supplier, contractor and service-provider information together, tracking documentation and certification, providing compliance alerts and helping organisations identify gaps before work begins.
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