Home Office exposes employers’ costly rights to work mistakes

In the midst of a Home Office crackdown against illegal working practices, they have published an independent study on employers’ awareness about correct right-to-work checks. Alexander Finch, Senior Associate at Vanessa Ganguin immigration law examines the common yet costly mistakes revealed by the survey

The results of the survey that was commissioned by the Home Office on employer awareness of right-to-work (RTW), are quite revealing. Eighty percent of all businesses surveyed answered at least one question about compliance incorrectly, and therefore are at risk for non-compliance. These include:

• 11% of respondents did not believe that all employers in the UK were responsible for conducting checks
• 51% of respondents said they’d accept a driver’s licence or bank statement
• Sixty-four percent of employers said they were required to check all employee documents every five years
• 12 % of documents were not checked correctly

The survey confirms something that most immigration lawyers knew: employers are most likely to make a mistake when they check a driver’s licence.

The incorrect checks are not protected from civil penalties. In the last quarter, fines were issued totaling more than PS20,000,000. The new study was conducted by 2,152 companies in different industries. It was released two days after a Home Office statement saying that tackling illegal work will be a priority. This includes extending RTW regulations for the first ever time to zero-hour employees and the gig economy. The new survey of 2,152 businesses across different private sector industries was published two days after a Home Office announcement that tackling illegal working will be a key priority and involve extending RTW rules for the first time ever to zero-hour workers and the gig economy.

Home Office officials say that major food delivery services Deliveroo and Just Eat already conduct voluntary checks to verify the eligibility of delivery riders to work. They also claim that sectors like construction, beauty salons, and couriers will soon require this. The Home Office says that this major change will likely require primary legislation and won’t be implemented for some time.

The Home Office’s survey on RTW warned that “employers who hire agency workers or zero hours workers may be at greater risk of noncompliance.”

Researchers at Verian conducted a survey that revealed micro and small business answered compliance questions incorrectly a greater percentage of the time than larger employers where HR staff are more likely conduct checks.

When asked who is responsible for conducting checks, 81% employers that use agency workers said incorrectly that the recruitment agencies are.

The majority of employers are aware that they are responsible for RTW check, and 89% said all employers in UK have a responsibility to perform them. There were also many misconceptions, as there was more than one option. 62% believed recruitment agencies held this responsibility. 48% thought the Home Office did. 46% thought employees themselves, and 44% said subcontractors.

The question was asked to employers who conduct manual checks. What documents are acceptable as proof? While most employers (96%) were aware that UK or Irish passports are acceptable, some incorrectly said that driving licenses (62%) and bank statements or utility bills (47%) could also be used.

The most likely employers to accept incorrect documentation are those in the manufacturing, construction, wholesale and retail trade, and wholesale and retailer trade (69%, 70%, and 72%, respectively).

The report also revealed that employers were unsure whether documents needed to be rechecked. 64% incorrectly stated documents should be rechecked at least every five years, rather than when a worker’s permission expires.

Only 24% employers who use an IDSP to conduct checks knew that the documents needed for employment must be retained plus two additional years.

Construction (41%) was the most common sector across all industries when asked whether illegal work was prevalent in their industry. Accommodation and food services (39%) was next.

The research found no evidence that RTW checks caused discrimination. Employers must apply the same checks to all employees, regardless of their nationality or ethnicity.

In recent years, and ever since the pandemic began, there have been many digital advancements and changes in RTW guidelines. However keeping up with these developments and performing checks correctly shouldn’t prove to be difficult. This survey shows that many employers make mistakes that can have devastating consequences.

If you hire someone who you believe to be working illegally, employers could face a civil penalty up to PS60,000 for each illegal worker. In more serious cases, employers may also face a criminal conviction with a maximum five-year prison sentence and a fine of unlimited amounts, as well as the inability to sponsor any other migrants, which would mean they’d have to leave the country.

A recent National Audit Office report revealed that in 2024, more than 10 times the number of cases referred to compliance checks compared to 2022.

Checking guidance updates, compliance processes and record-keeping is essential. Employers must be aware of how to perform manual RTW checks and use the online Home Office checking service. They should also know how to use IDSPs.

The survey shows that 89% of employers use the Home Office’s website to find information. This is a good sign, as it means they are keeping up with the latest updates. And it is great to see that us professional advisers at least score higher (59%) than social media/radio/TV/newspapers (16%) and friends or family (14%) as trusted sources of RTW information. This article may help us to rank higher.

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