Right to work checks – Financial risks and compliance steps for business owners
Right to work checks form an important part of business risk management, particularly now that the Government has increased the financial penalties for non-compliance.
From 2024, employers who fail to carry out correct checks face fines of up to £45,000 per worker for a first breach and up to £60,000 for repeat breaches.
These costs can have a big impact on businesses of all sizes, affecting cash flow, profitability, and business reputation.
Approved methods for right to work checks
Employers have three options to verify an employee’s right to work:
- Manual checks – Reviewing and copying original identity documents.
- Online checks – Using the Government’s online checking service for employees with digital immigration status.
- Identity Service Provider (IDSP) checks – Using certified providers to check valid British or Irish passports digitally.
Whichever method is used, employers must retain dated copies of documents and keep records securely for the duration of employment plus two years after.
Common compliance risks for employers
Problems often arise when checks are rushed or poorly documented. Employers must:
- Ensure documents are valid and current (with limited exceptions)
- Verify that names, photographs, and dates of birth match the employee
- Schedule follow-up checks for employees with limited working rights
Right to work checks should be integrated into recruitment and payroll processes from the outset.
Failing to do so can result in compliance gaps that could be costly if the Home Office carries out an inspection.
Financial and operational impact of non-compliance
The financial penalties for employing someone illegally are high, but the consequences do not stop there.
Businesses risk disrupted operations, increased audit scrutiny, damaged client relationships, and recruitment difficulties.
In sectors with seasonal or temporary workforces such as hospitality, tourism, and construction, the risk is even greater if right to work checks are not managed properly.
Reducing risk with better right to work checks
Employers can take a few straightforward steps to improve their right to work processes and reduce the risk of financial penalties:
- Review and update recruitment procedures to ensure right to work checks are consistently carried out
- Maintain clear records and integrate documentation into employee files
- Carry out internal reviews of existing employee right to work evidence
- Train HR and management staff on the latest checking requirements
Putting the right steps in place protects your business from costly fines and gives you the confidence that your operations are secure and well-managed
We help businesses build right to work processes that support compliance and protect financial stability.
Our team can assist with process reviews, audit preparation, and ongoing compliance advice.
If you would like support in reviewing your right to work procedures or wider business risk management, please contact us today.
