A late update to the Home Office’s employer guidance has clarified an important item for facilities management and procurement teams: the new extended right to work liability regime will not automatically apply to every existing outsourced contract. But arrangements starting from 1 October 2026 will need much closer attention.

With the new rules coming into force tomorrow, the Home Office has made a significant late change to its Employer’s Guide to Right to Work Checks.

The updated guidance, which was published yesterday (29 September), includes a new section setting out eight factors which employers should consider when assessing whether an arrangement falls within the extended liability regime. The guidance also updates the relevant flowchart to address agency workers and provides greater clarity around independent contractors and work taking place outside the UK.

For FM and procurement professionals, one detail stands out: the prescribed contractual requirements apply to labour supply contracts, subcontracts and online matching arrangements that start on or after 1 October 2026.

That specific distinction could make a significant difference to how organisations approach their existing supply chains.

What does this mean for existing contracts?

The new guidance has been a significant compliance consideration for organisations using outsourced labour, particularly where work is delivered through complex or multi-tier supply chains.

Facilities management is an industry that becomes particularly exposed. Cleaning, security, catering, maintenance and other essential services are frequently delivered through contractors, subcontractors, agencies and other labour supply arrangements.

The latest guidance requires that organisations do not necessarily need to treat every existing arrangement as though it were a new contract from 1 October. Instead, the date on which the relevant contract or arrangement started becomes an important consideration.

For an FM or procurement team, that creates a potentially important distinction between:

• An existing labour supply contract that began before 1 October 2026
• A contract being newly awarded from 1 October
• An existing contract being renewed or extended
• A new subcontract being introduced into an existing supply chain
• A new agency or labour supply arrangement being established after the rules take effect

The treatment of each arrangement needs to be considered carefully rather than applying a uniform approach across all suppliers.

The contract date becomes a key compliance question

For organisations preparing for the changes, one of the most useful questions to ask is not simply 'Does this supplier provide labour?'

It is: 'When did this particular arrangement start and are we creating a new arrangement from 1 October?'

That could make a substantial difference to the contractual requirements that need to be addressed.

The Home Office guidance confirms that the prescribed contractual requirements for extended liability apply to relevant labour supply contracts, subcontracts and online matching arrangements beginning on or after 1 October 2026.

That means procurement and commercial teams should have a clear process for identifying arrangements that fall into the new regime when contracts are awarded, renewed or otherwise replaced.

What should FM procurement teams check?

For contracts being negotiated or established from 1 October onwards, organisations should ensure that the relevant contractual provisions are being considered before the agreement is signed.

In particular, teams should be looking at the requirements around substitution and the contractual arrangements governing the supply of workers, alongside the wider right to work responsibilities within the supply chain.

A practical review could start with five questions:

1. What type of arrangement are we entering into?
Establish whether the relationship is a labour supply contract, subcontract, agency arrangement, online matching arrangement or genuinely independent contracting relationship.

2. When did the arrangement begin?
The start date is now particularly important when determining whether the prescribed contractual requirements apply.

3. Are we renewing or replacing an existing agreement?
Do not assume that an extension, renewal or replacement is simply a continuation of the original arrangement. The contractual structure and timing should be reviewed.

4. How many layers are there in the supply chain?
Map the relationship between the organisation, principal contractor, subcontractors, agencies and any further labour suppliers. Extended liability is particularly relevant where organisations rely on multi-tier arrangements.

5. Do the contractual terms provide the necessary controls?
For new arrangements, make sure the required contractual language and controls are addressed before the contract is signed, rather than attempting to retrofit them later.

Why this matters beyond HR

Right to work compliance may traditionally have sat primarily with HR and immigration teams. The new regime makes it increasingly relevant to procurement, commercial, FM and operations teams too.

The people negotiating the contract may be determining whether the organisation has the necessary protections further down the supply chain.

For an FM provider, that could mean reviewing how labour is supplied across multiple client contracts. For an in-house procurement team, it could mean building right to work requirements into supplier onboarding and contract renewal processes.

And for operations teams, it could mean understanding whether a seemingly minor change to an existing service arrangement creates a new contractual relationship that needs to be assessed under the new rules.

The potential financial exposure also makes getting the distinction right important. Civil penalties for employing an illegal worker can reach £60,000 per worker, depending on the circumstances.

What should businesses do now?

With the new regime taking effect on 1 October, there is little value in simply conducting a blanket audit of every supplier relationship without considering when and how each arrangement was established.

Instead, organisations should focus on building a clear picture of their contractual landscape.

For FM and procurement teams, that means identifying:

Existing arrangements: Which labour supply contracts and subcontracting arrangements began before 1 October?

New arrangements: Which contracts are being awarded or established from 1 October onwards?

Renewals and extensions: Which existing agreements are due to be renewed, extended or materially changed?

Supply-chain structure: Where do agencies and subcontractors sit within the delivery model?

Contractual controls: Do new agreements contain the relevant provisions required under the extended liability regime?

The Home Office's latest update provides some important clarity, but it also puts the spotlight firmly on the contract itself.

For facilities and procurement professionals, 1 October is therefore not simply a deadline for checking workers. It is a deadline for understanding the contractual architecture through which those workers are being supplied.

This article is intended as a practical overview of the latest Home Office guidance and should not be treated as legal advice. Organisations should obtain appropriate legal or immigration advice where the application of the new regime to a particular contractual arrangement is unclear.