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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On 6 March 2026, the Home Office updated sponsor guidance and introduced broader language, seemingly to extend the duty to retain right to work records to all workers even those not directly employed by the sponsor including references to:
“employ or engage”
Crucially, “engage” was not defined, which created uncertainty as to the scope of the duty.
A broad interpretation suggested that sponsors might need to carry out checks for contractors, freelancers, subcontractor’s employees, platform workers (e.g. courier services), and secondees etc.
The March changes also amended revocation grounds to allow action where a sponsor:
Employs or engages a person without permission to work.
A further update on 8 April introduced revised wording.
“You must check that any worker you wish to sponsor (including a worker who is not your direct employee), or any worker you otherwise wish to employ or directly engage, has permission to enter or stay in the UK and can do the work in question before they start working for you.…”
This amendment clarifies that:
“engagement” is intended to be limited to “direct” engagement, for the time being. The term ‘engaged’ or ‘engagement’ remains undefined, however the inclusion of the word ‘direct’ appears to narrow the scope of this obligation.
Case worker guidance dealing with compliance visits appears to contradict itself. This explains that:
“If a sponsor does not take copies of passports or immigration documents for sponsored workers or students, where applicable, and undertake right to work checks for all workers, they automatically fail the record keeping and maintaining documents section of the visit report because they have failed the requirement of:
- Immigration status monitoring
- Maintaining documents
But then also explains that:
“Such checks for non-sponsored staff are not mandatory and a sponsor is not in breach of their sponsor duties if they do not make these checks. If, however, the sponsor was found to be employing an illegal worker, the sponsor would not be classed by the Home Office as having a ‘statutory excuse’. For further information see the section on migrant issues and illegal working.”
In the first paragraph caseworkers are instructed that failure to undertake right to work checks and to retain evidence would result in automatic failure of the record keeping requirement and by extension, licence revocation, whereas the second paragraph explains that these checks are not mandatory.
In practice, the Home Office would be concerned if right to work checks were not being properly carried out and the correct evidence were not being retained.
This tension creates uncertainty for sponsors as to what is legally required versus what is expected in practice during compliance visits. Sponsors would be well advised to follow the stricter of these requirements, and to ensure that right to work checks are being carried out, and evidence retained, for all workers they wish to sponsor (including those who are not direct employees), and for any other worker they otherwise wish to employ or directly engage.
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
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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