After weeks of confusion, the Home Office has rolled back an April change that would have forced every employer holding a sponsor licence to conduct right-to-work checks on all contractors and self-employed staff, whether sponsored or not. In updated sponsor guidance released on 20 May – and analysed by immigration specialists Irwin Mitchell on 29 May 2026 – references to ‘unsponsored workers (directly) engaged’ have been deleted. The reversal means sponsors must revert to the long-standing position: check the immigration status of anyone they employ directly and of any individual they wish to sponsor, but not of every third-party contractor on site. The April wording had alarmed multinationals that rely on large numbers of consultants, agency temps and gig-economy workers, creating a potential compliance nightmare and threatening business continuity if checks could not be completed in time. While the climb-down is welcome, the Home Office signalled that wider obligations are still on the horizon when Section 48 of the Border Security, Asylum and Immigration Act 2025 is implemented later this year. Mobility and HR teams should therefore: • Audit current on-boarding processes to ensure compliant right-to-work checks for employees and sponsored staff. • Maintain a watching brief for further guidance updates and be ready to extend checks to non-traditional workers once the legislation is enacted. • Train front-line managers to recognise digital eVisas and avoid discriminatory practices as physical BRP cards are phased out from February 2026. Failure to carry out correct checks can attract civil penalties of up to £60,000 per illegal worker and can lead to suspension or revocation of the sponsor licence – a risk that could halt vital project assignments.
Source: Irwin Mitchell
