Rules · UK-EMP-022
A business further up a contract chain can be treated as the employer
From 1 October 2026 a business that is contracted to provide work or services, and uses another person to provide them, can be treated as employing the individuals who personally do the work, even without a contract with them, and can face the civil penalty. The Home Office guidance applies the new contract requirements to arrangements entered into on or after 1 October 2026. Buying a service for your own use is not covered.
is contracted to provide, or arrange for the provision of, work or services and enters into a contract under which another person is to provide, or arrange for the provision of, the work or services (or part of the work or services) … A is to be treated as employing any individual (“B”) who personally provides the work or services (or any part of the work or services)
- Rule ID
- UK-EMP-022
- Title
- A business further up a contract chain can be treated as the employer
- Description
- From 1 October 2026 a business that is contracted to provide work or services, and uses another person to provide them, can be treated as employing the individuals who personally do the work, even without a contract with them, and can face the civil penalty. The Home Office guidance applies the new contract requirements to arrangements entered into on or after 1 October 2026. Buying a service for your own use is not covered.
- Value
- Applies to arrangements entered into on or after 1 October 2026
- Applies to
- Businesses that agree to supply catering, bar or staffing services to someone else and deliver them through another employer or self-employed individuals, such as event caterers and contract caterers. A café or restaurant that only buys in a service for its own use is not caught.
- Jurisdiction
- United Kingdom
- Effective date
- 1 October 2026
- Last verified
- 12 October 2026
- Version
- 2026.1
- Source
- legislation.gov.uk
- Source retrieved
- 12 October 2026
- Related rules
- Category
- Compliance
- Status
- Verified
- Note
- The test is quoted from section 15A of the Immigration, Asylum and Nationality Act 2006, inserted by section 48 of the 2025 Act. The 1 October 2026 start for arrangements, the exclusion for services bought for own use and the contract requirements needed for an excuse (a written statement of terms, substitution controls and identity checks) come from the Employer’s guide and code of practice (PDFs), which the source check cannot read. The guide says the Home Office would not normally expect to issue a notice to more than one employer in a chain.