Business immigration updates for employers | September 2026

This month’s business immigration update focuses on the Home Office’s revised right to work guidance ahead of the 1^st October 2026 reforms and the new security and compliance requirements for sponsor licence holders using the Sponsorship Management System. We also include a brief note on the expansion of the Global Talent visa route and the Government's latest U-turn around its plans for digital ID. Together, these changes increase compliance obligations for employers while also creating new opportunities to attract and retain international talent.

Home Office releases revised draft Right to Work guidance ahead of 1^st October 2026 reforms

The Home Office published a revised draft of the employer’s guide to right to work checks on 11 September 2026, replacing the draft published on 16 July 2026. The updated guidance considers the stakeholder feedback received to clarify areas and provide revised examples to prevent ambiguity and remains expected to come into force on 1 October 2026 alongside the previously announced significant reforms to the Right to Work ("RtW") Scheme. For a summary of the wider reforms announced earlier this year, see our previous update.

Key takeaways

1. Further clarification on when the widened civil penalty & extended liability will be triggered

Historically, civil penalties under section 15 of the Immigration, Asylum and Nationality Act 2006 ("IANA") applied only to the direct employer of an individual under a contract of employment or apprenticeship who did not have permission to work in the UK. From 1 October 2026, new provisions under section 15A of IANA will extend the definition of the "employer" to certain indirect contractual arrangements, namely where:

• an individual is engaged under a worker's contract;
• an individual operates as an individual subcontractor; or
• services are provided through an online matching platform.

In addition, subcontracting supply chains will require closer scrutiny to prevent liability. Where labour is supplied through a contractual chain, the new concept of extended liability may trigger beyond the organisation that directly engages the individual carrying out the work. The guidance importantly clarifies that both the widened civil penalty regime and the new extended liability provisions will only apply where the employment commenced on or after 1 October 2026 or the relevant contractual arrangements were entered into on or after 1 October 2026.

2. New guidance on assessing non-direct contractual arrangements

A new section entitled Assessing Working Arrangements introduces eight factors intended to help organisations determine whether a particular arrangement falls within the scope of the RtW Scheme. Whilst the Home Office emphasises that "consideration should be given to the substance of the arrangements and how they operate in practice, the contractual description or label adopted by the parties involved will not, by itself, determine what responsibilities may arise under the Scheme". The government's intention is that the listed questions will be helpful to employers when assessing if their working arrangements mean the organisation is in scope and additional responsibilities arise.

3. Clarification concerning responsibility for conducting checks

The revised guidance now makes clear that, with the exception of prescribed checks carried out by a Right to Work digital verification service provider (RtW DVSP), responsibility for conducting right to work checks may be delegated to individuals or members of staff acting on behalf of the employer, including workers, agency workers or other individuals acting under the employer's control and direction. Importantly, this applies across all types of right to work check rather than only to manual document-based checks (as previously stated). We interpret this clarification to mean that in practice, an employer can delegate their right to work checks to an HR/shared services team within the wider corporate group and provided those checks are completed in accordance with the prescribed requirements, can still establish a statutory excuse to any civil penalty. However, it is clear that this delegation does not transfer liability away from the employing entity, who will remain responsible for any civil penalty if the individual is found to be working illegally.

4. Additional practical guidance

The Home Office has introduced guidance on "impersonation and imposters", advising employers who have concerns about an individual's identity or documentation to raise those concerns sensitively and proportionately by seeking further information from the individual and, where appropriate, obtaining independent advice. The guidance also provides additional detail on the use of Digital Verification Service Providers (DVSPs). Where a right to work check is obtained through a screening or referencing provider, the certified and registered DVSP carrying out the check must be clearly identified.

Practical steps for employers

Our recent article contains an overview of practical steps for employers.

Although the latest draft guidance provides helpful clarification, the key message for employers remains unchanged. Organisations should not wait to assess their exposure. Organisations should review their RtW processes for engaging casual workers, contractors with the right of substitution and subcontractor supply arrangements now to understand whether they could fall within the scope of the expanded RtW Scheme and the new extended liability provisions from 1 October 2026.

We will be sharing further practical guidance on these changes in the coming weeks. Watch this space for further updates.

New guidance on Sponsorship Management System security reforms

The UK Home Office has introduced a number of updated measures for users accessing the Sponsorship Management System ("SMS"). Whilst many of the amendments are administrative in nature, together they represent one of the most substantial changes to the operation of the SMS since the sponsorship regime was overhauled in 2020. If you are a Level 1 or Level 2 User – this section is essential reading.

The key updates at a glance

1. Introduction of mandatory multi-factor authentication ("MFA")

From 3 September 2026, the Home Office has begun rolling out mandatory multi-factor authentication (MFA) for SMS users. The rollout is being implemented in phases, meaning the date on which MFA becomes active will vary between sponsor licence holders. The Home Office will contact each sponsor's Authorising Officer, Key Contact and Level 1 Users approximately two weeks before MFA is enabled on their licence. The notification will confirm the implementation date and outline any preparatory actions required. Once MFA is enabled, Level 1 and Level 2 Users will log in using their existing SMS credentials. Level 1 Users will also be required to verify their date of birth. Users will then receive a one-time passcode to either their mobile phone or email address, valid for 10 minutes, which must be entered to complete the SMS login process.

2. Phased withdrawal of Level 2 User role

As part of the reforms to the SMS, the Home Office is withdrawing the Level 2 User role. From 9 September 2026, sponsors can no longer appoint new Level 2 Users. Existing Level 2 Users may continue to access SMS during a transitional period, but sponsors must upgrade eligible Level 2 Users to Level 1 User status by no later than 8 March 2027, at which point the role will be removed entirely and accounts will be deactivated. If your organisation has Level 2 Users, please contact us to discuss the eligibility of Level 1 Users so that you can ensure you have sufficient access to your SMS account moving forwards. 

3. Requirement to regularly use the SMS

The updated guidance also emphasises the importance of maintaining active and up-to-date SMS user accounts. Sponsors are expected to ensure that authorised users access the system regularly as part of their ongoing responsibilities. The Home Office recommends that a Level 1 User accesses the SMS at least once a month – a diary reminder is the best way!  The Home Office has indicated that it will take a more proactive approach towards dormant or inactive accounts, and if the SMS account is not accessed for 12 months or more, the Authorising Officer and inactive user will be contacted to take action.

Practical steps for sponsors

To prepare for the changes, sponsors should review the Home Office manual on MFA. Details stored on the SMS should be checked to ensure that Level 1 and Level 2 Users' email addresses, mobile telephone numbers and the dates of birth are correct to avoid delays in receiving key information or difficulties logging into SMS once MFA is enabled. Organisations that rely on Level 2 Users should take steps to upgrade them to Level 1 Users (if eligible) at the earliest opportunity to ensure they maintain access to SMS in line with the deadline on 8 March 2027.

Expansion of Global Talent Visa Announced

Recent changes to the UK's Global Talent visa route are expected to make it easier for employers to access highly skilled international talent. The Global Talent visa is a UK immigration route for people who are recognised as leaders or potential leaders in their field, provided (in most cases) they have a satisfactory endorsement. The visa route is aimed primarily at individuals active in academia and research, arts and culture, and digital technology.

Since 1 July 2026, a new design industry endorsement pathway has been introduced, opening the visa route to a wider range of professionals including product, graphic, UX/UI, game and digital designers. The change is particularly relevant for businesses in the creative sector seeking to attract senior design talent.

For researchers, one route to endorsement is through the UK Research and Innovation (UKRI) Endorsed Funder pathway. A further expansion of this pathway followed on 6 August 2026, when over 100 research-intensive businesses were added to the list of organisations able to support researchers under the UKRI endorsement pathway. The change extends access beyond universities and research institutions to a wider range of commercial organisations, including major employers across the Government's priority growth sectors. The full list of approved research organisations is available here.

Government cancels its plans around wider digital ID reform

The Government has confirmed that its proposed national Digital ID programme has been cancelled and will not proceed, including plans to make digital identity checks mandatory for all right to work checks. Instead, employers will continue to be able to use the existing prescribed right to work checking methods, including online Home Office checks for individuals holding digital immigration status such as eVisa holders. However, from 1 October 2026, employers using a Digital Verification Service (DVS) for a prescribed digital right to work check must ensure that the provider is certified against the statutory DVS framework and listed on the official DVS register in order to establish a statutory excuse against civil penalties.

The Government has also confirmed that wider digital identity initiatives will continue through the DVS regime, GOV.UK One Login, the GOV.UK Wallet and government-issued digital credentials. While Immigration Enforcement will remain intelligence-led, with additional funding allocated to tackle illegal working, the Government intends to explore how intelligence generated through digital checks can be shared lawfully to support compliance activity. The eVisa system will continue as the primary form of digital immigration status evidence, with support and alternative verification arrangements remaining available where users encounter technical difficulties. Any future expansion of digital identity requirements will be subject to consultation, impact assessment and parliamentary scrutiny.