The Home Office has announced plans to expand the illegal working prevention regime, requiring businesses to verify that all individuals working on their behalf have the legal right to work in the UK, regardless of contract type or working pattern. This includes those engaged in the gig economy, on zero-hours contracts, or through subcontracting arrangements.
Current Guidance
Employers are not legally required to conduct right to work checks on individuals who are not their direct employees (for example, self-employed contractors), and no statutory excuse is required in such cases. However, employers are strongly encouraged to confirm that any contractors or labour providers they use are carrying out right to work checks in accordance with Home Office guidance for the individuals they employ, engage or supply.
Importantly, where a business holds a sponsor licence and is sponsoring an individual (regardless of employment status), it must conduct right to work checks and retain evidence to demonstrate compliance with its sponsor duties.
Proposed Changes
The proposed changes would make it a legal obligation for businesses across all sectors to conduct right to work checks on all individuals working on their behalf, irrespective of the employment arrangement. Businesses operating in industries where non-traditional or flexible working models are common may face a higher risk of non-compliance and should be particularly proactive in reviewing their processes.
These proposals form part of the Border Security, Asylum and Immigration Bill, which is currently under consideration in Parliament. A full consultation with businesses on how the checks should be implemented is expected to follow.
Penalties for Non-Compliance
Penalties for failing to comply with the proposed right to work requirements include:
- Fines of up to £45,000 per illegal worker for a first offence
- Up to £60,000 per worker for repeat breaches
- Criminal sanctions, including potential prison sentences of up to five years
- Director disqualification and potential business closure
Businesses relying on flexible, high-turnover, or seasonal labour should begin reviewing their onboarding processes and contractor arrangements. Ensuring that relevant personnel are trained on right to work compliance will be essential to mitigate the risk of enforcement action, financial penalties, and reputational harm.
We are monitoring the Bill’s progress closely and will provide further updates as developments unfold.
Contact us
For a deeper discussion regarding the above or if you need advice on how these changes might impact your business or workers, please reach out to a member of our immigration team here.
The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.