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What changed on 1 October 2026?
The UK scheme requires employers to check that people they employ are permitted to do the work. From 1 October 2026, the Home Office’s current employer guidance and sponsor compliance guidance describe checking responsibilities that also apply to specified arrangements outside conventional direct employment.
The extension is relevant to construction because work may be arranged through several contractual layers. A developer or other organisation further up a chain may need to consider whether it is treated as an employer for a person who personally performs work or services under the relevant arrangements. The Home Office gives a property developer as an example of an organisation that may be treated this way; it does not say that every developer, main contractor or client is liable for everyone on a site.
Which construction arrangements may be covered?
The Home Office sponsor guidance identifies three expanded categories. These are important indicators, not a shortcut for deciding every project’s legal position.
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| Arrangement | What the guidance identifies | What still needs to be established |
|---|---|---|
| Worker’s contract | Organisations engaging individuals under a worker’s contract are within the arrangements described from 1 October 2026. | Whether the individual’s contract and actual working arrangement fall within the relevant category. |
| Individual subcontractor | Engagement of an individual subcontractor is identified in the guidance. | Whether the subcontract is with an individual who personally carries out the work, and how the contractual chain operates. |
| Online matching service | An operator may have responsibility where its service provides details of an individual service provider to prospective clients or customers. | Whether the service is the specified kind of matching service, rather than merely a general supplier directory or another type of platform. |
| Property developer in a construction chain | The Home Office says a property developer may be treated as employer of individuals who personally carry out work or services through the relevant contractual chain. | The contracts, the person’s role, who engages them and whether they personally provide the work or service. |
These descriptions do not establish that every company supplying materials, every corporate subcontractor, or every organisation somewhere upstream has a checking duty for every person working on a project. A company supplying a service through its own workforce is not automatically equivalent to an individual subcontractor personally doing the work. The particular statutory arrangement and contractual chain need to be assessed.
How to work out who must check on a project
Start with the people doing the work, not just the company names on the project organisation chart. Map the contractual relationships for each engagement model and identify whether the relevant person is being engaged as an employee, under a worker’s contract, as an individual subcontractor, or through a covered online matching service.
- List the engagement models. Include direct hires, individual subcontractors, agency or platform arrangements, and services supplied by other businesses.
- Trace the contracts. Record who contracts with the individual, who contracts with the immediate supplier, and whether an upstream organisation may be treated as the employer under the relevant chain.
- Identify personal performance. Establish whether the individual personally carries out the work or service, rather than a separate company supplying a service through its workforce.
- Assign checking responsibility. Document which organisation will conduct and retain the check, and ensure the assignment reflects the actual arrangement rather than relying only on a contract label.
- Resolve uncertain cases before work starts. If the chain or an individual’s status is unclear, obtain advice from a competent immigration or employment adviser for that contract structure.
This is a practical way to organise compliance, not a separate statutory checklist. A contract term allocating checks between businesses may help make responsibilities clear, but the Home Office guidance should be applied to the real engagement and statutory treatment, not treated as replaced by the parties’ label or allocation.
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What check is required, and when?
Use the Home Office employer guide dated 1 October 2026 for the current checking methods and timing. It explains initial checks, follow-up checks, acceptable manual evidence, online checks and checks in connection with TUPE transfers. The correct route depends on the person’s circumstances and the evidence or service available for that case; do not assume one method works for everyone.
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- Where permission is time-limited, schedule and carry out any required follow-up check by the appropriate time.
- Retain a record of the check and its date in the manner required by the current guidance.
- For some individuals with a timely outstanding immigration application, or an outstanding appeal or administrative review, obtain a Positive Verification Notice (PVN) from the Employer Checking Service where required to establish the statutory excuse.
A pending application or appeal does not mean that an organisation can simply assume a person is permitted to work. Follow the guide’s instructions for the person’s particular status, including whether an Employer Checking Service response is needed.
What the statutory excuse does—and does not do
A statutory excuse is a defence against a civil penalty for illegal employment where the employer has carried out the prescribed checks correctly. The Home Office’s current employer code and guide explain the required process. A check that is missing, late or not carried out in the prescribed way may fail to establish the excuse.
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The excuse is about civil penalty liability; it is not a general guarantee that every immigration or employment obligation has been met. Nor does it turn an incorrect or incomplete check into a valid one. Keep the evidence of each check, note who completed it and when, and track follow-up dates where they apply.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What can happen if a check is missed?
The consequences depend on the circumstances, and the civil and criminal routes are distinct:
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstall- Civil penalty: UK Government guidance says the civil penalty may be up to £60,000 for each illegal worker if the employer did not conduct the correct checks or did not carry them out properly. A correctly completed check can prevent the civil penalty.
- Criminal prosecution: Knowingly employing someone without permission to work, or having reasonable cause to believe the person lacks permission, can lead to prosecution, up to five years’ imprisonment and an unlimited fine. These are stated maximum consequences, not automatic outcomes for every missed check.
- Sponsor consequences: The Home Office sponsor guidance also identifies possible sponsor-licence consequences where a sponsor breaches its duties. This is separate from the civil penalty and criminal routes.
The figures are penalty ceilings in current UK Government guidance, not evidence of how often construction businesses are penalised or a forecast of the cost to a particular project.
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How to make checks consistent and non-discriminatory
Right-to-work checks should be applied consistently, not selectively to people who appear foreign or have particular names, accents or backgrounds. Use the Home Office code on avoiding unlawful discrimination while preventing illegal working alongside the current employer guide.
- Apply the same check process to all individuals in the relevant engagement category.
- Do not use appearance, nationality assumptions, name or accent as a reason to request different evidence or repeat a check.
- Train the people responsible for onboarding and site access, and give them a clear escalation route when evidence or status is unclear.
- Keep check records and access to them controlled, so evidence is available for compliance without being handled inconsistently.
Which guidance should construction businesses use?
Use the Home Office employer guide and employer code effective 1 October 2026 for checking methods, timing and the statutory excuse. Use the Home Office sponsor compliance guidance for the expanded categories and its property-developer construction example, and the separate code on avoiding unlawful discrimination for consistent treatment. Older archived employer materials from 2022–2025 may not reflect the expanded responsibilities effective from 1 October 2026.
For a live project, the decisive issue is how the actual engagement and contractual chain fit the covered arrangements. Where that cannot be resolved from the current guidance, get tailored legal advice before relying on a supplier’s assurance or assuming that responsibility rests only with the direct employer.
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