The UK government has recently announced significant changes to immigration law that will affect businesses hiring freelancers, self-employed contractors and zero-hours workers.
As part of a wider crackdown on illegal working and rogue employers, the Home Office is introducing plans which require UK organisations to conduct mandatory Right to Work checks on anyone working on their behalf, regardless of employment status or contract type.
Extending employment checks
Under the new regulations, businesses in industries that rely on freelancers and zero hours workers will be required to verify the immigration status of all of their workers.
Previously, employers were not legally obligated to carry out these checks.
With this future change, employers will need to confirm that all workers, including those who are self-employed or on zero-hours contracts, are legally eligible to work in the UK.
This move will help to level the playing field between traditional and flexible employment models, ensuring fairness and consistency across the labour market.
Penalties for non-compliance
This initiative is a key part of the government’s broader efforts to tackle illegal immigration, exploitative working practices and organised immigration crime.
Employers who fail to carry out the required Right to Work checks could face severe penalties. These include:
• fines of up to £60,000 per illegal worker
• business closures
• disqualification of company directors and
• potential criminal prosecution.
Furthermore, an immigration enforcement visit can severely damage an employer’s reputation, making it crucial for businesses to comply with the new rules.
The government has increased its immigration enforcement efforts, including a surge in raids, arrests, and civil penalty notices for businesses caught employing illegal workers. Since last July, immigration enforcement teams have made over 4,700 arrests across more than 6,700 illegal working visits, issuing thousands of civil penalties and marking a 40% increase compared to the previous year.
Impact on UK businesses
Employers in industries that rely on casual or self-employed labour, will need to review and potentially update their onboarding processes and internal systems to ensure compliance with the new regulations.
The Home Office will provide a checking service with businesses able to utilise digital ID verification technology to support the process – the checks should just take minutes to confirm someone’s immigration status. There will also be support in place for employers with enquiries about the process.
Conclusion
These right to work checks are not mandatory just yet. The Border Security, Asylum and Immigration Bill, which is making its way through Parliament, is being amended to incorporate the changes. A full consultation with businesses on implementing the checks will then follow.
However, businesses would be well advised to start thinking about the appropriate processes they may need to have in place ready to carry out the Right to Work checks on all workers, whether employed traditionally or under more flexible contract arrangements, when they become law – which may be later this year.
For assistance, email nicola.goodridge@goodhr.co.uk or call +44 7917 878384