Expanded right to work obligations for sponsors: what the updated guidance means in practice
The Home Office has quietly introduced a significant update to the sponsor guidance, which materially expands the scope of right to work checks expected of sponsor licence holders.
The revision to paragraph S1.40 confirms that sponsors must now carry out right to work checks not only on sponsored workers and direct employees, but also on a wider category of individuals who are not direct employees, including those who are self employed or otherwise directly engaged. This change represents an important development in sponsor compliance and has particular implications for businesses operating flexible workforce models, including those engaging contractors, consultants, secondees and workers within the gig economy.
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What has changed?
Paragraph S1.40 of the sponsor guidance now states that sponsors must check:
“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”
Before work begins, the sponsor must be satisfied that the individual has valid immigration permission to enter or stay in the UK and is permitted to carry out the work in question. Importantly, this obligation applies even where the individual appears to be a British citizen or otherwise settled, and regardless of whether the worker will ultimately require sponsorship.
Why this matters
Historically, the statutory right to work regime has focused on individuals employed under a contract of employment, service or apprenticeship. This has meant that many organisations engaging individuals on a self employed or contractor basis have not been required to carry out right to work checks.
As Freeths has previously highlighted in its analysis of illegal working in the gig economy, this regulatory gap has been widely exploited in practice, particularly where substitution clauses and informal working arrangements are used. The updated sponsor guidance significantly narrows that gap for sponsor licence holders. In effect, sponsors are now expected to take responsibility for verifying the immigration status of any individual they directly engage, regardless of how that relationship is structured.
A broader compliance obligation for sponsors
The revised wording of S1.40 creates two distinct obligations:
- Checks must be carried out on any worker a sponsor wishes to sponsor, including those who are not employed directly, and
- Checks must also be carried out on any worker the sponsor otherwise employs or directly engages, even where sponsorship is not required
This means that sponsor licence holders can no longer assume that the absence of an employment contract removes their compliance exposure. Contractors, consultants, self employed individuals and others engaged outside
Consequences of non compliance
The guidance makes the Home Office’s position clear. A failure to carry out the appropriate right to work checks, or any required follow up checks, is expressly treated as a breach of sponsor duties. Where a sponsor is issued with a civil penalty for illegal working, the guidance indicates that the Home Office will normally revoke the sponsor licence. Crucially, the wording also suggests that licence revocation may follow even where the individual ultimately has the right to work, if the sponsor has failed to comply with the checking requirements.
Given the critical importance of sponsor licences to business operations and workforce planning, this represents a potentially severe compliance risk for sponsors that have not updated their processes.
Final thoughts
This update to the sponsor guidance marks a clear shift in the Home Office’s approach to compliance. Sponsor licence holders are now expected to look beyond traditional employment relationships and take a much broader view of who must be checked.
For businesses that rely on flexible or atypical workforces, early action is essential. Reviewing engagement models and right to work processes now will be key to protecting sponsor licences and avoiding serious enforcement consequences later.
If you require further guidance or tailored advice on the next steps sponsors should take in light of these recent Home Office updates, please contact Freeths. Our team is available to provide practical support and help you navigate the evolving compliance landscape.
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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