From 1 October 2026, new Right to Work (RTW) requirements come into effect which broaden the regime’s obligations and associated civil penalties to include a far wider range of businesses than before.

Previously only applying to direct employees, the new rules apply to a much, much broader range of workers including subcontractors, agency workers, zero hours workers and those engaged through online or platform-based models.

Where an employer has been found to be employing someone illegally and the required checks have not been carried out – including under the expanded scope of the rules – businesses can face fines of up to £60,000 per illegal worker and various other sanctions ranging from a ban on sponsoring migrant workers to director disqualification.

The new rules come as recent Home Office data (released August) revealed that in the first quarter of the year more than £32m was levied from businesses found to have employed workers illegally! Ouch. With the new categories now applying this is bound to increase.

What to do – today!

Begin the process of checking the RTW documentation for those of your workers who fall into the new categories listed above. If you find anyone who is unable to meet the RTW, call us as soon as possible.

Fair Work Agency – first prosecution involving an individual who supplied workers to an abattoir without the required gangmaster’s licence. The Agency currently has enforcement responsibilities covering areas including National Minimum Wage compliance and employment agency conduct, with its remit expected to expand further.

One in seven workers say their basic employment rights have been violated in the past year, including issues such as unpaid wages, holiday entitlement and working hours. The findings are particularly relevant as the Fair Work Agency begins enforcement activity, giving small employers another reason to make sure their contracts, payroll and basic HR processes are in order.

HMRC has warned employers and recruitment businesses about schemes being marketed as ways to reduce PAYE and National Insurance bills through supposed tax credits acquired from other companies. HMRC says these arrangements can leave businesses liable for unpaid employment taxes, penalties and interest, so employers should be extremely cautious about payroll providers promising unusually large reductions in their tax bill.

Claim to employment tribunals timescale extended

From 1 October 2026, the time limit for making most claims in employment tribunals will be increased from three to six months (for breach of employment contract claims in Scotland, this change will take place on 9 November 2026).

A doubling of most tribunal time limits is set to lead to an increase in tribunal claims and extend the period during which workplace disputes remain live, particularly when combined with the January 2027 reduction to 6 months to claim unfair dismissal. However, the longer time period may also provide additional opportunity for disputes to be resolved through the internal grievance process, effective mediation or a settlement before proceedings are issued. Contact us as soon as possible if you have a dispute, our experts will hand-hold through to case closed.

Employment Disputes Insurance

Managing employment risk is rarely about expecting the worst. More often, it is about making sure the right support is available should a situation become more challenging than anticipated. Some employers are choosing Employment Disputes Insurance as part of a broader risk management strategy, helping to ensure specialist legal advice is available if an employment matter escalates.

Albion Legal, as our chosen partner, can provide cover for this. While ourHRpeople does not provide or underwrite the insurance policy, we can help employers understand where it may sit alongside good HR practices and effective people management.

Remember:

• Cover can be tailored to the specific needs of your business
• Pricing can start from £250 plus IPT pa, depending on configuration
• We are approved to manage the dispute on your behalf and advise throughout

Further information is available on our website if you would like to understand this option in more detail.

HR support: Our proactive retained package keeps you ahead of HR challenges, with predictable costs making budgeting simple. For a fixed monthly fee, you’ll have a dedicated HR Director and access to our wider team of experts.

Project support: From managing TUPE transfers, mediation, handling redundancy processes, and navigating restructures to setting up HR systems, we provide flexible, affordable solutions at a competitive hourly rate or fixed project price. Visit our informative website for more information or browse the most popular topics.