Construction businesses relying on subcontractors, agency labour, and complex workforce supply chains are urged to review their compliance procedures now, as sweeping changes to Right to Work rules are due to come into force on 1 October
The new Right to Work rules, introduced under the Border Security, Asylum and Immigration Act 2025, will significantly expand obligations beyond traditional employees and could expose construction firms to civil penalties of up to £60,000 per illegal worker if they fail to carry out the required checks.
Mandeep Khroud, head of immigration at Irwin Mitchell, explained: “Many construction firms operate through subcontractor networks and flexible labour arrangements.
“From 1 October, businesses will need to look much more closely at who is actually carrying out work on site and whether appropriate Right to Work checks have been completed.”
Greater scrutiny placed on how workers are used across projects
The Right to Work changes mean businesses may no longer be able to rely on the assumption that individuals classed as self-employed or engaged via subcontracting arrangements fall outside the regime.
Instead, liability could extend across labour supply chains, placing greater scrutiny on how workers are supplied, managed and verified on construction projects.
“The Home Office has made clear that it will focus on the reality of working arrangements rather than the labels used in contracts,” Khroud said.
“Businesses that assume a worker is outside the regime simply because they are described as self-employed could be taking a significant risk.”
Right to Work rules will expand to wider arrangements
Under the new framework, Right to Work obligations are expected to apply to a wider range of arrangements, including:
- Individual subcontractors
- Individuals engaged under worker contracts
- Certain outsourced labour arrangements
- Platform-based and online matching services
- Contracts containing substitution rights
Construction firms could also be exposed when they sit higher up the contractual chain and fail to implement the necessary compliance measures.
Sanctions apply if businesses fail to follow the new rules
To establish a statutory excuse against liability, businesses are expected to have robust contractual controls, processes for verifying workers’ identities, and measures to manage substitution arrangements.
Failure to comply could result in:
- Civil penalties of up to £60,000 per illegal worker
- Criminal sanctions in serious cases
- Suspension or revocation of sponsorship licences
- Public naming by the Home Office
Construction businesses must ensure they have the correct measures in place now
Experts advise construction businesses to use the remaining weeks before the Right to Work changes take effect to review contracts, assess workforce structures, and ensure they have appropriate systems to verify the immigration status of anyone working on their projects.
Khroud concluded: “With just one month until implementation, construction firms should be reviewing subcontractor arrangements, auditing onboarding processes and mapping their labour supply chains.
“Organisations that leave preparations until October may find themselves exposed to significant financial and reputational risks.”
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