All UK employers have a legal duty to prevent illegal working. The consequences of non‑compliance remain severe: civil penalties of up to £60,000 per illegal worker and, in the most serious cases, criminal prosecution carrying a potential five‑year prison sentence and unlimited fines. Technology businesses must ensure that right‑to‑work checks are carried out correctly and in line with current Home Office guidance. This applies to direct employees and raises important considerations for contractors, consultants, and project‑based specialists – all common in the sector.
Right‑to‑work checks are legally required only for individuals employed under a contract of employment or a contract to perform work personally. This means checks are not currently required for individuals who are genuinely self‑employed.
However, the technology sector relies heavily on blended labour models: employees, contractors, freelancers, platform workers, and gig‑based contributors. This complexity increases the risk of incorrect assumptions about who does and does not require a check.
Current Home Office guidance strongly encourages employers to ensure that contractors and labour providers are conducting compliant right‑to‑work checks on the individuals they supply or engage. This includes anyone in the supply chain using substitutes to perform work.
The Employer’s Guide to Right to Work Checks states:
“You are strongly encouraged to check that your contractors and labour providers carry out right to work checks in accordance with this guidance on people they employ, engage or supply (or carry out these checks yourself). This includes anyone in your supply chain using a substitute to perform work on their behalf.”
This does not create a legal obligation for employers to check every external worker’s right to work. However, technology employers should take proactive steps to ensure that checks are being carried out properly by suppliers. Failure to do so can lead to:
The distinction between employee, worker, self‑employed person, and contractor is not always clear. Recent tax reforms, including IR35, have highlighted the challenges of determining employment status.
In the technology sector, where individuals may work across multiple clients, through personal service companies, or via digital platforms, this uncertainty can expose businesses to risk if right‑to‑work checks are overlooked based on incorrect assumptions about status.
If a contractor is found to be working illegally on your project, this does not currently result in a civil penalty for the end‑client in the same way it would for an employee.
However, the operational and reputational consequences can be significant, particularly where the individual has access to sensitive systems, client data, or critical infrastructure.
For technology businesses delivering time‑sensitive projects, the removal of a key contractor can cause delays, breach service agreements, and damage client relationships.
The Border Security, Asylum and Immigration Act 2025 introduces a strengthened enforcement framework, including:
The Act does not currently impose a legal duty on employers to conduct right‑to‑work checks on contractors or the self‑employed.
The Act creates the legal framework for the government to introduce such duties in the future, however:
Until those details are released, employers’ legal duties remain unchanged.
If the government activates the powers contained in the Act, employers may in future be required to verify the right to work of self‑employed and gig‑economy workers. For the technology sector, this would represent a major shift. Businesses may ultimately need to introduce formal checks for:
This would bring contractor engagement processes much closer to traditional employment compliance.
Given the direction of travel, it is good practice for technology businesses to strengthen their right‑to‑work compliance frameworks. Home Office compliance activity has increased significantly, including more frequent audits and unannounced visits. You can take prepare now by:
These steps can help protect the business from disruption, reputational harm, and potential legal exposure.
If your business relies on long‑term contractors or consultants who are essential to service delivery, it makes commercial sense to ensure they have the legal right to work.
If these individuals are later found to be working illegally, the disruption to operations, reputational damage, and potential compliance issues could be significant, even if no civil penalty applies.
Right‑to‑work compliance in 2026 is no longer a narrow HR issue. It is a strategic, organisation‑wide responsibility, and one that is evolving to reflect the flexible labour models that underpin the technology sector.
With penalties rising, enforcement intensifying, and reforms on the horizon, technology employers should act now to strengthen their compliance frameworks. Those who prepare early will be best placed to navigate the new landscape with confidence.
We regularly support technology businesses of all sizes – from early‑stage start‑ups to global platforms – to navigate these requirements with clarity and confidence. If you would like tailored advice, a review of your current right to work processes, or support preparing for the proposed changes, please get in touch.
A short conversation now can help protect your business from disruption, reputational risk, and avoidable compliance issues as the landscape continues to evolve.
© 2026 BTO Solicitors LLP | V.A.T. No: 260371482 | All rights reserved.
Stay informed
