Are UK Employers Up to Speed with Right to Work Rules?
Recently, the Government confirmed that Right to Work (RTW) checks will soon cover gig‑economy staff and those on zero‑hours workers. Just 48 hours later, the Home Office released a detailed study to show whether companies genuinely keep illegal working at bay.
Main Conclusions of the Report
Verian questioned 2,152 organisations across every primary sector in September 2024 and conducted 30 follow‑up interviews. The results are striking:
- Plenty of awareness, patchy understanding. 89 % of respondents say they know RTW checks exist, yet far fewer can describe the correct procedure. The murkiest area concerns agency and zero‑hours staff – hardly surprising given the brand‑new rules.
- Too much faith in intermediaries. Many firms assume an agency can fully handle RTW. Of the businesses that hire via agencies, 81 % thought the agency alone was responsible, even though the law currently obliges employers to check employees, not workers.
- Digital checks lag behind. Despite the Home Office’s online system and accredited Identity Service Providers (IDSPs), 79 % still rely mainly on manual inspection. Only 37 % use the official online portal, and 23 % engage IDSPs.
- Inconsistent paperwork. Many companies do not check the correctness of documents, putting themselves at risk in the event of an audit.
- Small enterprises struggle most. Corporates with dedicated HR teams perform better; by contrast, 62 % of micro and small employers wrongly believed a driving licence proves RTW status, compared with 42 % of mid‑sized and large sponsors.
- Construction faces particular risks. Knowledge gaps about acceptable evidence and repeat checks are widest in construction. 41 % of firms in the sector believe illegal working is widespread.
- Motivation varies. When asked why they carry out checks, 91 % cited preventing illegal working, 88 % wished to avoid penalties, and a heart‑warming 87 % said they were simply “doing the right thing”.
Potential Consequences
Failure to comply can lead to:
- Penalties of up to £60,000 per illegal worker (triple the pre‑2024 figure).
- Criminal prosecution if an employer knew – or had reasonable cause to suspect – the worker lacked permission.
- Serious reputational harm, including lost contracts in both public and private tenders.
- Sponsor licence sanctions: suspension or revocation could force a business to dismiss sponsored staff and halt future recruitment.
Practical Steps to Raise Compliance
With enforcement tightening, employers should act now:
- Refresh policies. HR teams must digest the latest guidance and apply digital tools correctly.
- Train staff. Most mistakes are human. Regular, role‑specific training prevents expensive slips.
- Audit files. Routine internal reviews will uncover gaps long before an inspector does.
- Use approved technology. Where eligible, run checks through the Home Office online service or an IDSP and follow every step of the statutory excuse process.
- Keep organised records. Clear, dated copies of documents are essential evidence of compliance.
As fines climb, companies relying on zero‑hours labour – especially in construction, hospitality and healthcare – must master the rules now. Investing a little time and money today could avert a financial and legal catastrophe tomorrow.
How Can Sterling Law Assist?
Sterling Law’s employment specialists advise businesses of every size on RTW strategy, from running mock audits to training staff. If your organisation needs a clear, practical route through the new requirements – or urgent help responding to a Home Office notice – our team stands ready to guide you.
