2nd April 2025 | Nelli Shevchenko | Employment, Immigration, UK right to work

Failure to properly conduct a right to work check can lead to huge fines, reputational damage, operational disruption, and – in worst case scenarios – imprisonment.

the need for properly carrying out right to work checks. Indeed, the latest data for 2025 show that enforcement this January was up by 73% compared with January 2024.

For a first offence, employers can face penalties of £45,000 per illegal worker. This amount can reach £60,000 per illegal worker for subsequent offences. Relevant individuals and company directors can also face criminal sanctions of up to five years imprisonment and/or an unlimited fine. And, beyond penalties, failing compliance can harm your company’s reputation and disrupt your operations.

The high level of fines can bankrupt smaller to mid-size businesses, so HR compliance becomes even more crucial.

In the second of our two-part series on UK immigration and employment compliance, we focus on getting right to work compliance right – and avoiding costly penalties and reputational damage

Who needs to do the right to work checks?

A common misunderstanding is that right to work checks only apply to employers hiring foreign nationals. This is incorrect. UK law requires all employers to conduct these checks for every employee, regardless of nationality, to prevent illegal employment.

Notably, since September 2024, the UKVI has been encouraging businesses to carry out right to work checks beyond directly employed staff and extending it to self-employed contractors (and any substitute workers) and agency workers. One of the strongest reasons to do this is to avoid reputational damage.

Businesses with a UKVI Sponsor Licence face more rigorous requirements and greater scrutiny from immigration authorities. If your business has such a licence, you must demonstrate meticulous compliance procedures and maintain detailed, accurate records to pass regular audits. Otherwise, you can lose your licence and put your sponsored population at risk.

Conducting the checks

You must complete right to work checks before an employee starts work.

These checks cannot be delayed until after an employee has started their first working day. If someone cannot immediately show proof of their UK right to work, they must not be allowed to begin work until they can produce the correct documentation.

Employers must follow simple three steps:

  1. request original documents from the UKVI’s approved list in appropriate format
  2. inspect these documents carefully, verify their authenticity, and ensure they match the individual’s identity
  3. clearly record the date of the check and keep secure copies of these documents throughout employment and for two years after employment ends.

If a document or online verification shows the right to work is temporary, you must set reminders to perform follow-up checks before that expiry date. This helps maintain compliance and avoids penalties.

If your right to work check complies fully with current guidance and legislation, your business has a “statutory excuse”. This provides protection against penalties if an employee is later found to be working illegally, provided you’ve conducted proper follow-up checks as required.

Accurate and accessible record-keeping is vital. Your records should include copies of all relevant documentation, digital verification results, and clear notes on who carried out each check and when. Having a record of a right to work check can be decisive in an event of illegal working instance and help the business avoid penalties.

Identifying potential problems

If your company is involved in a transfer of staff under TUPE regulations, additional right to work checks might be necessary for the new employees.

If the company uses an Identity Service Provider (IDSP) for their checks, they must remember that this does not discharge their duties from record keeping and identity check. Moreover, an IDSP can be expressly used for right to work checks of British or Irish citizens with a valid passport only. It is not possible to establish a statutory excuse against liability for a civil penalty if the check via manual document-based check or online service was done by an IDSP. The company must ensure they are doing those checks and also checking the IDPS results, or they can be liable for a penalty.

If you discover an employee no longer holds the right to work in the UK, you are usually required by law to stop employing them immediately. Although this protects you from unfair dismissal claims, such dismissals must be carefully managed according to employment law. You should seek professional advice to avoid discrimination claims and ensure legal compliance.

In case of any doubt regarding an individual’s documentation, do not allow them to start work until you are certain of their legal status. The UKVI Employer Checking Service can provide assistance if required. If unsure, immediately seek advice from your immigration advisor.

In an event of an audit from the UKVI enforcement team, employers can potentially reduce penalties if they clearly demonstrate:

  • consistent and robust right to work checking procedures
  • regular documented training for staff performing checks
  • prompt corrective actions in response to any identified issues

Additionally, cooperation during audits and proactively addressing compliance issues may help mitigate penalties.

Conclusion

Effective UK right to work checks, accurate record-keeping, and vigilant monitoring are critical to avoiding significant fines, legal issues, and reputational damage. Businesses, especially those with a UK Sponsor Licence, must maintain high compliance standards to ensure smooth and successful operations in the current regulatory environment.

To find out more contact our Employment & Immigration team here. 

.

Related insights