Expanded RTW checks create ‘needless burdens’, says REC

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10/07/2026

Expanded RTW checks create ‘needless burdens’, says REC

Plans to widen the liability for right-to-work checks will create ‘needless legal burdens’ for employers, according to the Recruitment and Employment Confederation (REC).

Last month, the Home Office published a draft code of practice on preventing illegal working, which sets out how an expanded RTW scheme would operate. The code will be effective from 1 October 2026.

The code implements the concept of “extended liability”, allowing civil penalties to move through the contractual chain beyond the direct employer, for example if the employer cannot be identified or fails to comply.

This means that liability for failing to do the right checks, and therefore hiring illegal workers, could fall to employers using agency workers.

End hirers, main contractors, labour providers and platforms would have to put controls into place, and end clients would have to put in identity verification processes even if checks have already been done.

The REC believes this will “massively increase complexity” as not all employers will have access to the technology to run the checks, with the impact being felt most keenly by industries with complex labour supply chains, such as construction.

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By extending civil liability beyond “traditional” employment relationships, it adds, the government could further dampen the use of agency workers on top of burdens already introduced by the Employment Rights Act 2025.

Employers who hire workers who do not have a legal right to work in the UK could face penalties of up to £45,000 per worker for a first breach and £60,000 for repeated breaches.

Shazia Ejaz, REC’s director of campaigns, called for government departments to be “more joined up” when considering the impact on business of new regulations.

“In a slow-chugging economy, business can only cope with so much additional operating costs and bureaucracy,” she said. “Labour supply chains are longer and more complex than in previous times, which will also make it harder to establish where the final liability for these checks sits.

“It is reasonable to ask employers to check legality. But this goes way further and businesses should not face liability for workers they do not employ when they have taken reasonable steps to ensure compliant suppliers are carrying out Right to Work checks.

“The likely result is slower onboarding and a more cautious hiring process at a time when employers need access to talent quickly and young people need jobs.”

Ejaz added that the new code could encourage some employers to favour applicants whose right to work is easier to identify, potentially risking discrimination.

The REC is campaigning instead for the government to get digital ID proposals up and running, which would “significantly reduce the opportunity for illegal working”, she said.

The Home Office has indicated it will publish guidance on the expanded RTW scheme before October.