UK Immigration Update: Major Changes to UK Right to Work Compliance – Border Security, Asylum and Immigration Act 2025

Expanded right to work ('RTW') obligations for businesses under the Border Security, Asylum and Immigration Act 2025.

The Border Security, Asylum and Immigration Act 2025, which received Royal Assent on 2 December 2025, introduces the most significant overhaul of UK illegal working compliance in over a decade. The Act expands RTW check obligations beyond traditional employees to cover gig economy workers, zero-hours staff, subcontractors, and platform-based service providers in sectors such as construction, delivery, warehousing, and logistics. It also mandates digital/online checks for many roles, accelerating the UK’s shift towards fully digital verification systems. 

Key Changes

Expanded Scope

RTW checks now apply to every person working for a business or individual in the UK, irrespective of nationality or immigration status, including:

• Employees

• Non-employees under a worker contract

• Self-employed contractors

• Gig economy and zero-hours workers

• Individuals engaged via online job-matching platforms

Digital checks

In addition to expanding the categories of working person who will be subject to RTW checks, it is the Government's intention to require businesses and employers to use Home Office online services or certified Identity Service Providers (IDSPs) for carrying out RTW checks in almost all cases, with manual RTW checks being phased out. 

The Home Office's Immigration White Paper published in May 2025 also sets out the Government's intention to introduce mandatory identity cards for everyone in the UK which will form a universal basis on which RTW can be confirmed and recorded.

Timing

Checks must be completed before work starts for all new hires, regardless of contract type or duration of work. Where an individual holds time-limited permission the check must be repeated before their permission expires to confirm their ongoing RTW until they cease work.

Penalties

Illegal working penalties and offences are strict liability, and the only defence is a properly completed record of the RTW check having taken place and applies to every worker irrespective of nationality. Civil penalties have increased to £60,000 per illegal worker. Additional sanctions include:

• Sponsor licence downgrade, suspension or revocation

• Business closure orders

• Director disqualification

• Criminal liability for the business and any responsible person where there deliberate breaches including having 'reasonable 

• Refusal or cancellation of business licences eg those required for the supply of alcohol, provision of entertainment and provision of late night refreshment

• Adverse publicity due to publication on a civil penalty list.

The Home Office routinely reviews data collected via Department for Work and Pensions in respect of benefits and National Insurance contributions and HMRC in respect of payroll and tax returns in connection with individual RTW and worker status in the UK, and is increasingly using digital systems to track and flag possible illegal working for investigation.

A six-week consultation ending 10 December 2025 governing proposals for how the changes may be implemented is underway, following which guidance and secondary legislation will be published.

Recommended actions

• Review and update RTW check protocols to include all classes of worker as listed above, not just employees

• Ensure HR systems and records are ready to capture, store and update RTW data for non-employees, as well as employees

• Provide training and updates to staff responsible for RTW checks to ensure they know the latest requirements

• Set up a secondary approval system for RTW checks before a person is added to payroll

• Conduct randomised spot checks on RTW records to detect non-application of protocols, allowing for repeat checks to be undertaken

• Review IDSP providers and complete registration processes to ensure that the service is ready to use in the event it is required

• Seek specialist immigration and employment advice early if these processes are not yet in place to ensure they can be implemented before the new RTW obligations are introduced.

Withers' UK Immigration and Employment teams would be delighted to assist with your queries and provide further support.