Section 48 of the Act will, once implemented, extend the prevention of illegal working regime to companies such as those in the screen sector who are hiring people in the gig economy or on zero-hours contracts, requiring them to confirm that individuals working on their behalf have the legal right to work in the UK before hiring them. 

The obligation will apply regardless of the type of contract or working pattern in place, and extends to any businesses using third-party platforms or subcontracting arrangements.

Currently, liability for an illegal working civil penalty and the crime of knowing or having reasonable cause to believe an illegal worker is being employed only applies to workers who are employees. 

The Act extends this liability to individuals engaged under a "worker's contract", meaning a contract, other than a contract of service or apprenticeship, under which an individual undertakes to do or perform personally work or services for someone and that person is neither a client nor customer of any profession or business undertaking carried on by the individual.

The extended regime also applies to anyone engaged as an "individual sub-contractor", meaning an individual who has entered into a contract with an organisation to provide work or services in circumstances where that organisation has entered into a contract with a third party to provide or arrange for the provision of the work or services but the individual has not.

Additionally, it covers individuals engaged through an "online matching service" business, which keeps a register of service providers for matching them with potential clients or customers, provides an online service for submitting enquiries for such matches, and charges a fee or commission for making such matches.

The Act clarifies that liability will arise where a business is contracted to provide or arrange the provision of work or services, regardless of whether that contract is the first or other contract in a chain of contracts to provide some or all of the work or services, which appears aimed at sectors such as construction which commonly use these arrangements. Multiple businesses can be liable in relation to the same instance of illegal working.

Penalties for non-compliance with the prevention of illegal working regime include fines of up to £45,000 for a first offence, and up to £60,000 per illegal worker for repeat breaches, as well as potential business closures, director disqualifications and, if a criminal offence has occurred, potential prison sentences of up to five years.

Section 48 of the Act has not yet been brought into force. Implementation requires commencement regulations which have not yet been passed. The Home Office's impact assessment confirmed that a formal consultation with businesses would take place prior to commencement of the regulatory changes.

A draft code of practice addressing the upcoming changes to the prevention of illegal working regime was published on 15 April 2026. 

The final version of the code is anticipated to be in force from 1 October 2026 and will apply to all new right to work checks that are carried out after this date. The draft code redefines the term "employers" to encompass working relationships created under a contract of employment, a worker's contract, an individual subcontractor arrangement, and an online matching service that provides the details of service providers to potential clients or customers.

If you work with freelancers, casual crew, or staff arranged through agencies or platforms, especially for roles like catering, runners, security, or delivery, you may soon be legally required to carry out right to work checks, even if the person isn’t directly employed by your business. 

This change means: 

• You’ll need to make sure checks are being done for a wider range of people – either by your team or the third parties you use. 

• You may be held legally responsible if someone working on your production is found not to have the right to work. 

• Failing to comply could lead to heavy fines, reputational harm, or criminal charges in serious cases. 

While the new rules aren’t yet in force, this is a good time to: 

• Review your onboarding processes – especially where work is arranged informally or at short notice. 

• Clarify responsibilities in your contracts with third-party providers. 

• Train staff involved in recruitment or scheduling, so they understand the basics of right to work checks.