UK: Expansion of right to work obligations - What retail, consumer, food and beverage businesses need to know

In December 2025, the Border Security, Asylum and Immigration Act received Royal Assent, introducing significant changes to checks on illegal working that will have far-reaching implications for businesses in the retail, consumer, food and beverages sectors. The Act substantially expands the scope of right to work checks and extends liability for illegal working along supply chains.

The current legal position

Under existing law, all employers are under a duty to prevent illegal working by ensuring that employees have the legal right to work in the UK. This is done through conducting right to work checks. Employers who fail to correctly conduct checks, and are subsequently found to employ illegal workers, face civil penalties, or criminal sanctions if done so deliberately.

However, the current framework contains a notable gap. Whilst employers are obliged to prevent illegal working of employees, this obligation does not extend to workers engaged through alternative arrangements such as those on zero-hours contracts or gig-economy workers for example. Where workers are engaged through third parties, the responsibility for conducting right to work checks currently sits with the company supplying the labour.

Upcoming changes

The Border Security, Asylum and Immigration Act will expand the right to work compliance regime. Once implemented, section 48 of the Act will:

• Extend right to work checks beyond employees to include all workers, regardless of their employment status. This covers contractors, sub-contractors, gig-economy workers, zero-hours contract workers, and other non-traditional arrangements, whether engaged directly or indirectly.
• Introduce supply chain liability, meaning that any business involved in the engagement of a worker could be deemed the ‘employer’, even without direct contractual relationships. Multiple businesses can therefore be held liable for a single illegal worker.

Failure to correctly conduct checks, leading to illegal working, could expose businesses to penalties including:

• Fines of up to £45,000 per illegal worker for a first-time offence
• Fines of up to £60,000 per worker for repeat offences
• Criminal sanctions, including prison sentence of up to 5 years
• Revocation of sponsor licence

• Director disqualification and business closure.

   

How does this impact your sector?

These changes will be particularly significant for businesses in the retail, consumer, food and beverage sectors, many of which rely heavily on flexible working arrangements and complex supply chains.

• Flexible workforce implications

  Many businesses utilise zero-hours contracts, seasonal workers, students and holiday workers to manage fluctuating demand. Under the new regime, every individual – whether British or foreign national – should have their right to work checked on or before their first day of work, regardless of their employment status.

  For businesses with high staff turnover, such as restaurants, cafes and retail shops, this will increase administrative burdens and costs. However, the potential consequences of non-compliance – including fines and loss of the ability to sponsor migrant workers – make compliance essential.

• Supply chain liability

  The extension of liability along supply chains presents risk for businesses that outsource services such as cleaning, food delivery, security or temporary staffing through agencies for example.

  Under the new regime, if an illegal worker is found anywhere in a supply chain, a business could be liable even if it has no direct relationship with that worker. Both the initial contractor and all sub-contractors in the chain may face penalties.

• Heightened enforcement activity

  The Home Office has increasingly focussed enforcement activity on sectors including food delivery, hospitality and retail. Businesses operating in these areas can expect continued scrutiny as the new provisions come into force. For businesses that rely on migrant workers, non-compliance leading to potential loss of sponsor licence, could severely impact the ability to recruit required staff.

Timelines and next steps

Whilst the Act received Royal Assent in December 2025, section 48 – which introduces these provisions – is not yet in force, with no implementation date yet announced. 

To prepare for these changes, businesses should consider taking the following proactive measures:

• Review existing procedures – ensure current right to work check process fully complies with existing legal requirements, particularly given increased Home Office enforcement activity.
• Update onboarding processes – ensure right to work checks are conducted for all workers, regardless of employment relationship.
• Implement supply chain compliance measures – establish clear contractual arrangements with contractors and subcontractors requiring evidence of compliance.
• Utilise digital verification services – use online tools such as the Home Office’s online checks (for non-UK and Irish citizens) and Identity Document Validation Technology service providers (for UK and Irish citizens), to ensure compliance.

• Training and documentation – ensure HR teams and hiring managers understand the requirements and maintain records to evidence right to work.

   

Despite the uncertain timeline, businesses should start implementing procedures to ensure both current and future compliance. Reviewing processes now will ensure preparation for when the provisions come into force.