UK Reverses Right to Work Expansion

The Home Office has amended its sponsor guidance to reverse recent changes which had significantly expanded the scope of right to work (RTW) checks expected of sponsor licence holders.

Earlier guidance first published in March 2026, which was subsequently amended at the end of April, appeared to increase the scope of expected RTW checks for sponsor licence holders to include unsponsored workers who were “engaged” or “directly engaged” by the business.

This appeared to expand the RTW scheme beyond traditional employees and sponsored workers for whom businesses were already obliged to carry out RTW checks to include the likes of contractors, consultants, agency workers and other non-employed individuals.

Following widespread concern from businesses and advisers, the Home Office has now updated the guidance and removed the expanded wording, clarifying that businesses need only conduct RTW checks on

• any worker they employ, whether or not they are sponsored by the business; and
• any sponsored worker, whether or not they are employed by the sponsor, with this encompassing non-traditional employment relationships where permitted by the immigration route (particularly Creative Workers).

WIDER RTW REFORMS ARE STILL EXPECTED

By reversing its previous guidance, the Home Office has largely restored the previous position which will be welcomed by sponsors who have been grappling with how to operationalise the earlier changes, particularly where large contractor populations or complex labour supply chains are involved.

However, the government remains intent on expanding the scope of the RTW scheme to encompass non-traditional employment relationships, including self-contractors who are engaged by businesses, as part of wider plans to strengthen illegal working enforcement.

Current proposals indicate that RTW obligations may eventually be extended to

• workers engaged under non-traditional working arrangements;
• certain self-employed contractors; and
• online matching and platform-based working models.

Whilst no set date for this expansion has been announced, the Home Office previously indicated these reforms could take effect from 1 October 2026.

WHAT SHOULD SPONSORS DO NOW?

HR and legal teams should consider taking the following steps:

• Review any operational changes implemented in response to the April 2026 guidance update
• Continue to ensure existing RTW checking processes remain compliant and up to date
• Maintain robust sponsor compliance procedures for sponsored workers
• Continue monitoring developments in relation to the proposed expansion of the UK RTW regime

Although the latest update provides welcome clarification, the direction of travel from the Home Office remains pointed towards increased compliance expectations and broader illegal working enforcement.

Businesses should therefore continue preparing for further change over the coming months.