Recruitment Agencies and Right to Work Checks
5th November 2026
- Categories: Business, Compliance, HR, Sponsor licence, Visas
Who is liable when workers are supplied to clients?
Recruitment agencies play an essential role in supplying workers to businesses across the UK. However, when workers are recruited through third parties, determining who is responsible for carrying out Right to Work checks can become complicated.
With changes to the UK’s Right to Work requirements introduced on 1 October 2026, recruitment agencies and businesses using temporary workers must understand how their immigration compliance obligations may be affected.
Failing to establish who is responsible for conducting the necessary checks could expose businesses to significant financial penalties and other consequences.
Who is responsible for Right to Work checks?
Under UK immigration law, organisations must ensure that individuals working for them have the appropriate permission to undertake their roles.
Previously, the statutory Right to Work scheme primarily applied to individuals employed under a contract of employment.
However, from 1 October 2026, the requirements have been extended to cover additional working arrangements, including certain workers engaged under contracts for personal services, individual subcontractors and online matching services.
For recruitment agencies, this means that responsibility for immigration checks must be considered carefully, particularly where workers are supplied through third-party arrangements.
The organisation responsible will depend on the nature of the working relationship and the contractual arrangements in place.
How do different recruitment models affect responsibility?
Recruitment agencies operate under different business models, and each arrangement can create different immigration compliance obligations.
Direct Employment
Where a recruitment agency recruits a candidate who is then employed directly by a client, the client will generally be responsible for carrying out the prescribed Right to Work checks.
Although the agency may assist with recruitment and initial document verification, the employer must ensure that the checks are completed correctly before employment begins.
Businesses should not assume that checks conducted by a recruitment agency automatically establish their own statutory protection against civil penalties.
Labour Supply and Temporary Workers
Where an employment business supplies temporary workers to a client, the responsibility would generally sit with the organisation employing or engaging the individual, which often is the employing business.
However, the October 2026 changes introduce additional considerations for businesses receiving workers through labour supply arrangements.
Depending on the circumstances, organisations within the supply chain may face extended liability for illegal working.
Recruitment agencies and their clients should therefore establish clear contractual responsibilities, ensuring appropriate compliance measures are in place before workers begin their assignments.
*Compliance measures should be in line with the extended liability prescribed requirements.
Individual Subcontractors
The changes also affect businesses engaging individual subcontractors.
Previously, self-employed individuals working outside traditional employment arrangements were generally not covered by the same statutory Right to Work checking requirements.
From October 2026, organisations engaging individual subcontractors will be required to carry out prescribed checks to establish protection against civil penalties.
This is particularly relevant to recruitment businesses operating in industries such as construction, logistics and hospitality, where subcontracting arrangements are common.
Contractual Chains and Multiple Agencies
Immigration compliance can become more complicated where several organisations are involved in supplying the same worker.
For example, a recruitment agency may obtain workers through another employment business or subcontractor before supplying them to an end client.
In these circumstances, it is important to identify the responsibilities of each organisation within the contractual chain.
The October 2026 framework introduces extended liability provisions that can affect organisations receiving workers through other businesses.
Consequently, recruitment agencies should review their supply chains and ensure that appropriate contractual protections and checking procedures are established.
What changed on 1 October 2026?
The changes to the Right to Work scheme represent an important development for recruitment agencies and businesses using non-traditional working arrangements.
The expanded framework means that certain organisations engaging workers outside traditional employment contracts must now comply with statutory checking requirements.
It also introduces provisions addressing illegal working within contractual supply chains.
For recruitment businesses, this highlights the importance of understanding how workers are engaged, who is responsible for completing checks and what evidence must be retained.
Importantly, contractual agreements alone do not automatically remove an organisation’s legal responsibilities.
Businesses must ensure that their arrangements satisfy the relevant Home Office requirements.
What are the risks of getting it wrong?
Failure to comply with Right to Work requirements can result in significant consequences.
Under the civil penalty scheme, businesses can face penalties of up to £60,000 per illegal worker, depending on the circumstances.
Additional consequences may include:
- Reputational damage and disruption to business operations.
- Increased scrutiny and enforcement action from the Home Office.
- Criminal prosecution in serious cases of knowingly employing an illegal worker or employing a person who you have reasonable cause to believe is working illegally.
- Potential implications for businesses holding a Sponsor Licence.
For recruitment agencies supplying large numbers of workers, weaknesses in immigration compliance procedures can create substantial financial and operational risks.
How can recruitment agencies reduce immigration compliance risks?
Recruitment agencies and businesses using supplied workers should take a proactive approach to reviewing their immigration compliance procedures.
This may include:
- Reviewing contractual arrangements: Establishing which organisations are responsible for Right to Work checks and whether extended liability provisions apply.
- Assessing labour supply chains: Identifying third-party agencies, subcontractors and other organisations involved in supplying workers.
- Reviewing onboarding procedures: Ensuring appropriate checks are completed before individuals begin working.
- Maintaining accurate records: Retaining the evidence required to demonstrate compliance with Home Office guidance.
- Providing staff training: Ensuring recruitment and HR teams understand the updated requirements and their responsibilities.
Regular immigration compliance audits can also help identify potential weaknesses and reduce the risk of non-compliance.
Not automatically. Agencies must ensure that any checks carried out by third parties meet the relevant Home Office requirements and that their own legal obligations are satisfied.
Where the statutory record-keeping requirements apply, records should generally be retained throughout employment and for two years after it ends.
Potentially, depending on their immigration status. Employers may need to use the Home Office Employer Checking Service to verify their permission to work before allowing them to start.
Follow-up checks may be necessary where a worker has time-limited immigration permission. The timing depends on their immigration status and the applicable Home Office guidance.
Yes. Where liability applies, recruitment agencies can face civil penalties of up to £60,000 per illegal worker for failing to comply with Right to Work requirements.
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