The Home Office has issued further updates to its sponsor guidance, reversing a position that had caused significant uncertainty for sponsor licence holders regarding right to work checks for self-employed workers and other non-employed individuals.
Earlier this year, changes to the sponsorship guidance appeared to broaden sponsors' right to work obligations beyond their existing legal responsibilities. However, following feedback, the Home Office has now clarified that sponsors are not currently required to carry out right to work checks on all workers they "directly engage" and has removed the relevant wording from the guidance.
Background
In March 2026, and subsequently through updated guidance issued in April, the Home Office introduced wording which suggested that sponsor licence holders should conduct right to work checks not only on their employees but also on workers they "directly engage".
The introduction of this phrase generated considerable concern amongst sponsors and immigration practitioners. The guidance did not define what was meant by "directly engage", leaving uncertainty as to whether the requirement extended to self-employed contractors, consultants, agency workers, freelancers, or other categories of non-employed workers.
Importantly, this appeared to conflict with the current regulatory framework governing the prevention of illegal working regime. Under the existing provisions, liability for a civil penalty generally arises where a business employs an individual who does not have the right to work in the UK and has failed to conduct a compliant right to work check. The legislation does not currently impose an equivalent obligation in relation to genuinely self-employed individuals.
As a result, the updated guidance appeared to impose obligations on sponsors that went beyond the scope of the current legal framework.
Anticipated Changes Under the Border Security, Asylum and Immigration Act 2025
The confusion was heightened because legislative changes are already on the horizon.
The Border Security, Asylum and Immigration Act 2025 will introduce a new framework requiring businesses to verify the right to work of certain self-employed workers and contractors. The purpose of the reforms is to close what the Government considers to be a gap in the existing illegal working regime, whereby organisations may engage individuals on a self-employed basis without undertaking immigration status checks.
However, these provisions are not yet in force. Current indications suggest implementation is likely from October 2026, and further regulations and Home Office guidance are expected before the new requirements take effect.
Many commentators therefore viewed the March and April sponsor guidance as premature, appearing to anticipate legislative changes that had not yet been implemented.
Home Office Clarification
The most recent update to the sponsorship guidance has now addressed these concerns. Following what the Home Office describes as "user feedback", the relevant references requiring sponsors to undertake right to work checks on unsponsored workers they "directly engage" have been removed. The Home Office has confirmed that sponsors are not currently subject to any additional right to work checking obligations beyond those that already exist under the current legal framework. The deleted provisions should therefore be disregarded.
This clarification will come as welcome news to sponsor licence holders who had been assessing whether they needed to introduce additional compliance procedures for contractors and other non-employed workers.
Who Must Sponsors Carry Out Right to Work Checks For?
It is important that sponsors continue to ensure that they are meeting their right to work obligations. At present, sponsors should carry out right to work checks for:
- Any worker they intend to sponsor under the sponsorship system, including individuals who may not be direct employees of the organisation;
- Any other worker they intend to employ within their business or organisation; and
- Any existing employees where a follow-up right to work check is required due to a time-limited permission to work.
Sponsors should ensure that checks are conducted in accordance with Home Office guidance and that appropriate records are retained throughout the worker's employment.
Compliance Risk
The updated guidance also serves as a reminder that right to work compliance remains a key focus area for Home Office compliance activity.
The sponsorship guidance states that a failure to carry out an initial right to work check, or any required follow-up check, may place a sponsor in breach of its sponsorship duties. Such breaches can have serious consequences, including licence suspension, downgrading or revocation.
An employer is also at risk of a civil penalty of up to £60K per if their employee;
- does not have the right to work in the UK; and
- The employer has failed to carry out a compliant right to work check which would provide a statutory excuse from a civil penalty.
However, the sponsorship guidance suggests that sponsors may still face compliance action in respect of their sponsor licence where right to work checking processes are deficient, even if no illegal worker has been identified. This highlights the importance of maintaining robust onboarding procedures and ensuring that all required checks are completed and properly documented.
Looking Ahead
Although the Home Office has stepped back from its earlier position, the extension of right to work checks to self-employed workers is firmly on the Government's agenda through the Border Security, Asylum and Immigration Act 2025. Sponsors and other employers should therefore continue to monitor developments closely and prepare for further changes over the coming months.
Further guidance is expected before the new provisions come into force, with implementation currently anticipated from 1st October 2026 onwards. Organisations that regularly engage contractors, consultants and other self-employed workers should review their onboarding processes now to ensure they are ready to adapt when the new requirements are introduced.
If you would like any more information about our audit services please click here.
