Confusing changes to sponsor guidance on right to work checks

Recent updates to Home Office sponsor guidance (March and April 2026) have introduced significant, and at times inconsistent, changes to right to work checking obligations for sponsor licence holders. These developments have important implications for organisations holding a sponsor licence and those responsible for HR compliance.

Employer right to work checks are not currently mandatory, although failure to undertake a check can result in a civil penalty for illegal working, as an employer will not have a ‘statutory excuse’ against a civil penalty if they have failed to carry out a check.

Right to work checks were a sponsor compliance duty for sponsor licence holders, who were expected to carry out checks, and to retain evidence not only for employees but also for sponsored workers who were not direct employees. Failure to do so would be a breach of record keeping duties and could result in the suspension and revocation of a licence. 

However, sponsors were not previously required to check individuals who were neither employees nor sponsored workers. 

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 Foreshadowing primary legislation

Foreshadowing primary legislation

The updates appear to anticipate future legislative reform as they align with proposed changes under section 48 of the Border Security, Asylum and Immigration Act 2025. 

Section 48 of the Border Security, Asylum and Immigration Act 2025 proposes to expand the UK's illegal working regime, broadening the definition of "employment" to include non-employee workers, self-employed contractors, and online platform service providers (gig economy workers). It proposes to extend civil penalty liability so that it is no longer limited to employees and extends to these arms-length working arrangements. 

However, section 48 is not expected to be brought into force until October 2026 at the earliest. This raises concerns about the premature implementation statutory powers through policy rather than legislation. 

Rather than clarify the implications of right to work non-compliance for sponsor licence holders, the March 2026 and April 2026 amendments create further uncertainty and inconsistency.  

Risk management

Risk management

Given the current uncertainty, organisations, particularly licence holding employers, should adopt a cautious and risk-based approach. 

Employers should identify where individuals may be “directly engaged” and assess whether checks should be implemented. Also, in readiness for the implementation of s48 of the Border Security, Asylum and Immigration Act 2025, consider how they plan to implement checks for contractors, freelancers, agency workers, and gig economy workers

Sponsor licence holders should ensure robust record-keeping. Unless or until legislation is implemented or policy is further amended, sponsors are operating within an expanded but uncertain compliance environment.

The March and April 2026 changes represent a shift in sponsor compliance expectations, moving towards a broader right to work regime covering non-traditional working arrangements.

However, the current framework is internally inconsistent, potentially wider than existing law and creates a challenging environment for sponsors. 

If you have any queries regarding the contents of this legal article please get in touch with Emma Brooksbank or another member of our Business Immigration team.

The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.

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