Right to Work Checks: October 2026 Changes and What to Know

How right to work failures can affect an existing sponsor licence

Part 3 of the sponsor guidance says that all employers must check that employees have the right to work in the UK and to undertake the work in question. It also says that licensed sponsors have a duty to carry out a right to work check on any worker they sponsor, regardless of the nature of the employment relationship.

The guidance sets out the possible consequences. If a sponsor employs or sponsors a worker who does not have the relevant immigration permission, and the sponsor failed to carry out the appropriate right to work check, or could otherwise reasonably have been aware that the worker did not have the relevant permission, the Home Office may take serious action.

Where the statutory right to work scheme applies, this can include a civil penalty. If a civil penalty is issued, the Home Office guidance says it is likely to revoke the sponsor licence. Where the statutory right to work scheme does not apply because the sponsor is not the direct employer, the Home Office may still revoke the licence if the sponsor is sponsoring a worker who does not have the relevant permission.

The revocation annexes reinforce this.

Annex C2(d) says the Home Office will normally revoke a sponsor licence where the sponsor is sponsoring or employing a worker who is subject to immigration control, the worker does not have permission to work in the UK or to do the work in question, and the sponsor failed to carry out the appropriate right to work checks or could reasonably have been aware that the worker did not have the relevant permission.

Annex C2(g) is also relevant. It says the Home Office will normally revoke a licence where the sponsor fails to provide, when requested and within the time limit given, a document specified in Appendix D. This means that missing right to work evidence can itself become a serious compliance problem.

How right to work failures can affect a sponsor licence application

Right to work compliance is also relevant before a business has a sponsor licence.

Businesses applying for a sponsor licence are routinely assessed on whether they are trustworthy, compliant and capable of meeting sponsor duties. The Home Office can refuse an application where it has concerns about the organisation’s suitability to hold a licence.

Part 1 of the sponsor guidance includes a specific “normally refuse” ground where the applicant is sponsoring or employing a worker who is subject to immigration control, the worker does not have permission to work in the UK or to do the work in question, and the applicant failed to carry out appropriate right to work checks or could reasonably have been aware that the worker did not have the relevant permission.

This is a common practical issue in sponsor licence applications. A business may apply for a sponsor licence because it wants to regularise or retain a worker, but the Home Office may look closely at whether that person has already been working without the correct permission. If the business cannot demonstrate that proper right to work checks were carried out, the licence application may be refused and the case may also be referred for civil penalty consideration.

For prospective sponsors, the message is clear: right to work compliance should be reviewed before applying for a sponsor licence, not after.

The discrimination risk

The October 2026 code is not only about preventing illegal working. It is also about avoiding unlawful discrimination.

Employers must not carry out checks selectively based on nationality, ethnicity, accent, appearance or assumptions about immigration status. Right to work processes should be applied consistently and fairly.

This will become even more important if businesses expand checks to cover a wider group of workers. A wider checking process must still be implemented in a way that avoids discriminatory treatment.

Practical steps for employers and sponsors

Employers and sponsor licence holders should review their right to work systems before October 2026. This should include:

• checking that right to work checks are carried out before work starts;

• ensuring checks confirm permission to do the specific work in question;

• using the correct Home Office online checking service where required;

• retaining evidence of checks in a central and accessible format;

• diarising follow-up checks for workers with time-limited permission;

• reviewing contractor, subcontractor, agency and platform-worker arrangements;

• ensuring sponsored workers are checked even where they are not directly employed by the sponsor;

• auditing Appendix D records before a Home Office visit or sponsor licence application;

• training HR, recruitment, operations and line managers to identify immigration status issues; and

• applying checks consistently to avoid discrimination risk.

  
  

Conclusion

Right to work compliance is becoming more important, not less.

For ordinary employers, failing to carry out checks properly can lead to substantial civil penalties and, in serious cases, criminal consequences. From October 2026, the Right to Work Scheme is expected to apply to a wider range of working arrangements, including individual subcontractors and online matching service models.

For sponsor licence holders, the risk is more serious. Appendix D requires sponsors to retain right to work evidence for workers they employ and workers they sponsor. Part 3 of the sponsor guidance links right to work failures to civil penalties, compliance action and potential sponsor licence revocation. The revocation annexes confirm that serious failures can put the sponsor licence itself at risk.

The same issue can also affect businesses applying for a sponsor licence. If a prospective sponsor has already employed or engaged someone without the correct permission, and has not carried out proper right to work checks, the Home Office may refuse the licence application.

Right to work checks should therefore be treated as part of a wider immigration compliance system. Employers should review their onboarding, record keeping, contractor arrangements and sponsor compliance processes now, rather than waiting for the expanded regime to take effect.