New Right-to-Work Rules Increase Liability in Construction Supply Chains

• •New right-to-work rules effective October 1, 2026, increase liability for contractors.
• •Penalties can reach £60,000 per illegal worker if compliance checks are not met.
• •Contractors must establish written agreements with subcontractors detailing compliance obligations.

As of October 1, 2026, new right-to-work regulations in the UK impose extended liability on construction companies for illegal working in their subcontracting chains. This change means that contractors can face civil penalties of up to £60,000 per illegal worker if they fail to conduct proper eligibility checks. The regulations require contractors to have written agreements with subcontractors that outline compliance responsibilities, including eligibility checks and audit cooperation. The updated rules apply to various construction-related businesses, including property developers and facilities management providers. Existing contracts made before the rule change are not automatically affected unless they are renewed or varied. The new guidelines emphasize the need for contractors to ensure that the workers they engage have the right to work, extending liability beyond just the direct employer.