Right-to-work checks: New rules, wider liability and increased risk for UK businesses

The changes are supported by a new draft Code of Practice on Preventing Illegal Working, and updated Home Office guidance. However, genuinely self-employed individuals operating independently or in business in their own right (such as tradespeople who contract directly with the public), remain outside the scope of the new rules.

A key development is the introduction of extended liability. While responsibility for conducting right-to-work checks will usually remain with the party directly engaging a worker, businesses higher up the supply chain may also face civil penalties of up to GBP 60,000 if illegal working is discovered. For example, a property developer could be held liable for illegal workers supplied through contractors working on a construction project.

To defend against potential penalties where they are not the direct employer, businesses will need to demonstrate that they have:

• Appropriate written contracts containing Home Office-prescribed terms;
• Required substitution controls; and
• Proportionate identity-checking processes for workers carrying out the services.

Businesses should prepare now by reviewing labour supply arrangements, identifying where direct checks or extended liability may apply, and assessing the risks of relying on checks completed by third parties. They may also need to update contracts to incorporate the new requirements, particularly for long-term or ongoing commercial relationships.

Additional priorities include reviewing digital verification providers, updating onboarding and right-to-work procedures, introducing enhanced due diligence and audit processes for suppliers, and providing training for HR, recruitment, and procurement teams.

These reforms will affect organisations of all sizes and will require careful planning to ensure compliance and reduce exposure to potentially significant civil penalties. 

Details of Ward Hadaway’s Right to Work Compliance Toolkit, designed to help businesses meet their newly expanded duty, can be found here.

---

Flora leads Ward Hadaway's team of 15 dedicated Immigration solicitors, as well as being a Partner in the Employment team.  She has expertise in managing international relocation and recruitment projects for businesses in the UK and ensuring compliance with UKVI's complex, ever-changing rules.