Sponsor licence holders face wider right to work duties after Home Office update

The updated Guidance is a significant shift – going beyond a sponsor’s prior right to work obligations. Sponsors were previously required to carry out right to work checks in respect of (a) employees (sponsored and non-sponsored), and (b) other sponsored workers (if any). Now, the guidance requires right to work checks for any directly engaged workers – sponsored or not. 

The terms "worker" and "directly engage" are not defined in the Guidance or the associated glossary,  so it isn’t expressly clear how wide the obligation bites. However, it is likely to cover a situation where there is a direct contractual relationship of some kind between the organisation and the individual. Whilst the term "worker" does not necessarily correlate to the worker terminology used in the employment law context, prior legislation regarding right to work checks adopted the same meaning for the “employee” terminology used in an employment context. As such, the employment law terminology is a sensible indicator for what “worker” is likely to mean in the updated Guidance. 

In this context, we expect the following types of individuals are likely to be captured:

a)    Casual and zero-hours workers (including ‘gig economy’ workers);

b)    Seasonal or temporary workers; 

c)    Office holders - such as directors; and, 

d)    Directly engaged individual contractors, consultants and others whose arrangements are akin to an employer/worker arrangement, rather than a business-to-customer/client arrangement (e.g., an in-house medical consultant or a hairdresser renting a chair would likely be captured).

Yes – to some extent. The forthcoming Border Security, Asylum and Immigration Act 2025 (expected to be in force from October 2026) will extend the right to work check requirements further. In short, all companies (regardless of whether they are a sponsor licence holder or not) will be required to carry out right to work checks on a wider remit of the workforce, beyond just employees. 

The outcome of a recent consultation and Home Office guidance regarding how the legislation will apply to companies in practice is pending. 

However, section 48 of the legislation states that right to work checks will be required for individuals engaged:

a)    Under a worker contract: This includes typical worker arrangements, but also individuals who do not have a direct contract with the business, such as agency workers.

b)    As an individual sub-contractor: This covers individuals providing work to a business via a third party. For example, this would likely include a construction agency providing a business with individual construction contractors. Note - in such circumstances, under this limb b) the construction agency would be required to do a right to work check on such individuals – but it’s likely that the end business would also be expected to do a right to work check pursuant to limb a) above.

c)    Via an online matching service: This will typically cover ‘gig’ economy arrangements e.g., taxi and food delivery services.

There has also been commentary (albeit not confirmed) that the Home Office intends to capture self-employed individuals – but, if so, the above categories do not clearly address this group.

Whilst this is an evolving area and further guidance is pending, sponsor licence holders should consider the following protective steps now:

(a)    Audit your workforce: To identify the various categories of individuals who are directly employed or engaged to determine who falls within the expanded Guidance.

(b)    Expand right to work checks: If you are a sponsor ensure right to work checks are conducted for all directly engaged workers, not just employees. Seek advice, if needed, to help work through the potential strategy for approach.  Even if you are not a sponsor consider how you would approach this duty given the upcoming changes to the right to work requirements.

(c)    Consider contractual protections: If commercially viable, consider seeking warranty and/or indemnity protection in the engagement terms with directly engaged individuals (e.g., confirming their right to work in the UK, and indemnifying the business against Home Office civil penalties). Whilst this step alone wouldn't protect sponsors against potential Home Office action, it would still provide some commercial comfort during this evolving time.