Timeline confirmed for employer check changes as UK right to work revamp revealed

The government confirmed that new immigration law changes would take effect from 1 October, which widen employers’ duties to check staff have a right to work beyond traditional employment roles to cover workers’ contracts, individual subcontractors and online job-matching services.

The changes mean businesses engaging zero-hour, gig and agency staff, and companies operating platforms to match freelancers to clients, will need to carry out right to work checks – with an obligation for digital checks to be carried out through a certified and registered digital verification service provider.

Included in the new regime is the extension of civil penalty liability up contractual chains, meaning businesses will be held liable even if work is contracted out to a third party which in turn engages another party. As a result, companies would be responsible even if they have no direct relationship with an individual or know that person was working.

Civil penalties for employing a person without the right to work in the UK can reach £60,000 per worker.

Shara Pledger, an immigration expert with Pinsent Masons, explained that even though Home Office guidance to confirm practicalities of the new scheme is still awaited, having clarity of an implementation date would help employers prepare for the impending changes.

“There had been real concern that the new scheme would mean that right to work checks were needed for all workers - direct and indirect - in all circumstances,” she explained.

“The new publications appear to indicate that this is not the case, and that in the supply chain scenario there is a mechanism for businesses to rely on robust commercial arrangements with intermediaries. This will be a relief to businesses who foresaw real difficulties with a much wider checking scheme, but the Home Office practical guidance for employers is needed to confirm exactly what will be acceptable from October."

While the changes, which follow a consultation earlier this year, provide clarity in many areas, the Home Office has not yet confirmed how the extended liability framework will work alongside licenced sponsors for immigrant workers.

Introducing the changes in parliament, border security 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 sub-contractors to provide services under their company name, such as agency workers or workers in the gig economy.

“These changes close gaps in the current framework and ensure that responsibility for the prevention of illegal working sits appropriately across modern labour market structures.”

Pledger explained that with clarity over the new regime and its introduction timetable, employers should start auditing and identifying who among their staff falls within the extended right to work scope, and begin updating contracts and checking processes to align with the new rules.

She warned that some sectors are likely to be more impacted than others, and may require expert input to support the changes.

“Infrastructure and construction commonly have supply chain arrangements which fall under the new scheme,” she added.

“However, hospitality and some retailers are more likely to engage with zero hours or gig economy workers, for whom direct checks will now be needed.”