Ensuring your business remains compliant with employment law is more critical than ever. One area demanding particular attention from business owners is surrounding right to work checks, a legal requirement that carries significant consequences if overlooked.
Recent government guidance highlights how work-based migration has been driven by particular sectors being forced to rely on overseas recruitment due to shortages linked to skills, training and conditions here in the UK. The new government manifesto laid out in its immigration white paper has committed to “ending the long-term reliance on overseas workers in some parts of the economy by bringing in workforce and training plans for sectors such as health and social care, and construction”.
As the guidance indicates, there will be significant changes to skilled worker thresholds, with the government planning to lift the level for skilled workers back to RQF 6 and above (Degree level). This will dramatically reduce the number of eligible occupations, aligning with the government’s approach to linking skills and migration.
For small business owners, these changes mean staying vigilant about compliance is more important than ever.
What are right to work checks?
Right to work checks are a mandatory process for all UK employers. They verify that individuals you employ have the legal right to work in the United Kingdom. These checks must be conducted before employment begins and must follow the Home Office’s prescribed process, which includes examining and retaining copies of acceptable documents.
The new guidance makes clear that employers seeking to recruit from abroad will need to be committed to playing their part in increasing recruitment from the domestic workforce. It also introduces a new Temporary Shortage List providing time-limited access to the Points-Based immigration system for occupations below RQF 6.
Legal requirements for employers
As an employer, you are legally obligated to:
- Check all potential employees’ right to work in the UK before they begin working for you
- Conduct follow-up checks for employees with time-limited permission to work
- Keep secure records of all checks for the duration of employment and for two years afterwards
- Ensure all checks follow the Home Office’s guidance to establish a statutory excuse
Importantly, these requirements apply to all employees regardless of their nationality, to avoid discrimination.
The severe consequences of non-compliance
Many small business owners underestimate the gravity of failing to conduct proper right to work checks. The penalties for non-compliance are designed to be a significant deterrent:
- Civil penalties: Employers who knowingly hire illegal workers face substantial financial penalties for first offences, with even greater fines for repeat offences.
- Criminal prosecution: If you knowingly employ someone who does not have the right to work in the UK, you could face criminal charges resulting in imprisonment and/or an unlimited fine.
- Business disruption: Your business premises could be closed, and you may face restrictions on your business operations.
- Reputational damage: Being found to employ illegal workers can severely damage your company’s reputation and relationships with clients, suppliers, and partners.
- Director disqualification: You could be disqualified from acting as a company director, effectively ending your ability to manage your own business.
The changing immigration system
As outlined in the recent guidance, the immigration system is undergoing significant reform. The document makes clear that the Immigration Salary List which gives people discounts from salary thresholds will be abolished, and the Migration Advisory Committee (MAC) will undertake a thorough review of salary requirements.
The guidance also addresses eVisa transitions, which will provide a significantly better end-to-end experience for individuals throughout their entire journey – from proving their immigration status to living, studying or working in the UK. With real-time digital access, people will have more control over their documents and data.
Key changes highlighted in the guidance include:
- The establishment of a new Temporary Shortage List to provide time-limited access to the Points-Based immigration system
- Requirements for sectors to have proper workforce strategies which aim to maximise the use of the UK workforce
- New restrictions on bringing dependants for jobs below RQF 6
- The exploration of reforms to allow a limited pool of UNHCR recognised refugees and displaced people to apply for employment through existing sponsored worker routes
How Professional HR support can protect your business
Navigating these complex requirements doesn’t have to be a burden you carry alone. Professional HR support specifically focused on right to work compliance can:
- Ensure all checks are conducted correctly and in accordance with current legislation
- Maintain secure documentation systems that meet Home Office requirements
- Provide timely alerts for follow-up checks for employees with time-limited status
- Keep you informed of regulatory changes that might affect your compliance obligations
- Offer peace of mind that your business is protected from potentially devastating penalties
In an evolving immigration landscape, ensuring your business complies with right to work requirements is not just a legal necessity but also a critical safeguard for your operations. With the UK government tightening regulations, raising skilled worker thresholds, and emphasising the need to prioritise domestic recruitment, small business owners must be especially proactive.
Right to work checks are a fundamental part of employment compliance, and failure to conduct them properly can result in severe financial, legal, and reputational consequences. By engaging professional HR support, businesses can confidently navigate these complex requirements, stay ahead of legislative changes, and protect themselves from costly penalties – ultimately building a more secure and compliant foundation for future growth.
Natalie is a virtual HR Consultant based in Northamptonshire, providing services to clients across the UK, and offering HR support to small businesses.
With extensive experience in senior HR roles within the retail, transport, construction, and financial industries, she possesses in-depth knowledge of tailoring effective HR solutions to meet specific business requirements.
