Home Office minister Alex Norris said: “The reforms introduce, for the first time, an extension of the Right to Work Scheme and the associated civil penalties for non-compliance, to cover companies who contract workers or individual subcontractors to provide services under their company name, such as agency workers or workers in the gig economy.”

Hudson Contract, the largest payer of subcontractors in construction, has already carried out 18,000 compliant checks ahead of implementation and is calling on the government to publicise the guidance that the wider industry will need to prepare.

Managing director Ian Anfield said: “Construction has one of the highest rates of self-employment of any sector. If there are 900,000 freelancers and operatives each working for three different clients in a year, that’s 2.7 million checks, every one of which comes with a cost in time and money and a potential delay in getting people onto site. Those costs will be felt by construction firms and by the operatives themselves.

“The consultation response makes clear that companies are already carrying out checks in a variety of different ways with no consistent approach. On top of that, around half of businesses think they’re already doing Right to Work checks but the chances are most of those wouldn’t provide a statutory excuse and could leave firms facing significant liabilities.

“The government also suggests companies can’t rely on digital checks alone, despite that being widely reported as the direction of travel.

“The biggest concern for the industry right now is that companies need time to put robust policies in place, take advice and get ready. We’ve already completed more than 18,000 checks on behalf of our clients to make sure they’re protected when October 1 arrives.”

Employers or engagers which fail to carry out Right to Work checks face penalties of up to £60,000 per operative. In serious cases, sanctions escalate to criminal conviction, a prison sentence of up to five years and an unlimited fine.