The Home Office has recently updated its guidance for employers on right to work checks, with important implications for employers, including umbrella companies. These changes aim to streamline the process of conducting right to work checks, enhance compliance, and reduce the risk of illegal working in the UK.
Key Changes to the Home Office Guidance
The updated Employer’s guide to right to work checks, effective from 12 February 2025, includes several notable changes:
- Digital Certificate of Application (CoA) Verification: Employers are no longer required to verify a digital CoA with the Home Office Employer Checking Service (ECS) when conducting right to work checks.
- Enhanced Online Checking Service: The Home Office has improved its online checking service, making it easier for employers to verify an individual’s right to work using a share code. Specifically, the Home Office now issues digital immigration statuses (eVisas) rather than physical biometric residence permits (BRPs).
- Clarified Document Requirements: The list of acceptable documents for manual checks has been updated to provide clearer guidance on what constitutes valid proof of the right to work.
Consequences for Failing to Carry Out Right to Work Checks Correctly
Employers may face severe consequences if they fail to conduct right to work checks properly and in accordance with the Home Office guidance, including:
- Civil Penalties: Employers can be fined up to £60,000 per illegal worker if they fail to conduct the right checks.
- Criminal Liability: Knowingly employing an illegal worker can result in a criminal conviction, with penalties including unlimited fines and up to five years in prison.
- Loss of Sponsor Licence: For companies that sponsor migrant workers, failing to comply with right to work checks can result in the loss of their sponsor licence.
- Reputational Damage: Non-compliance with the guidance can lead to significant reputational harm, affecting business relationships and customer trust.
- Operational Damage: The Home Office may conduct site visits and audits, leading to operational disruptions and additional administrative burdens.
The recent updates to the Home Office guidance on Right to Work checks present both challenges and opportunities for umbrella companies. By understanding and adapting to these changes, umbrella companies can ensure compliance, avoid hefty penalties, and maintain their operational integrity. It is crucial for all employers to stay informed and diligent in conducting right to work checks to protect their businesses and ensure compliance with the law.
First published on 20/02/2025 on FCSA’s main website.
