Dear Myles
I’ve heard that there have been recent changes to the Home Office’s guidance on right to work checks, especially for contractors and agency workers. I’m very concerned about how these changes will impact my business, and what steps I need to take to ensure I am fully compliant. Could you help clarify what I need to do to avoid potential penalties and keep my business safe?
Dear Proactive Business Owner
It’s great that you’re on top of these recent changes – staying compliant with right to work checks is crucial. With the updated guidelines, employers must now carry out right to work checks, not just for their employees, but also for contractors and agency workers. Here’s a simple breakdown of the key changes and how you can make sure your business stays on track.
What’s Changed with Right to Work Checks?
The key update is that you are now strongly encouraged to conduct right to work checks for your contractors and agency workers. Previously, it was just a suggestion, but now it’s seen as a critical step for all workers you employ or engage with, including substitutes. This means everyone who works for you, whether directly or indirectly, needs to have their right to work checked and clearly documented.
It’s not just about staying compliant – it also helps safeguard your business from potentially costly mistakes down the line.
Do Contractors Need to Be Checked?
Yes – contractors now need to go through the same checks as your own employees. If you’re using a contractor, it’s a good idea to get their right to work verified. For those who don’t have a sponsor licence, you won’t face a civil penalty for missing a contractor’s check, however it’s still a risk that can hurt your business reputation. It’s always better to stay ahead of the curve and get this done.
If you’re using agency workers, remember it’s not just their responsibility – the agency and you are both liable to ensure their right to work. Keep this in mind if you’re engaging with temporary staff.
Sponsor Licence Holders – Take Note!
If your business holds a sponsor licence, you’ll need to be even more careful. Updated guidance for sponsors states that if you employ contractors who are not your direct employees, you don’t need to set up a statutory excuse. However, you must still carry out the right to work checks and keep records of those checks. Failing to do so could lead to sponsor licences being downgraded or revoked, which could have serious consequences for your ability to recruit overseas talent.
Review Your Right to Work Procedures
To stay compliant, you should review your right to work procedures immediately. Make sure your process reflects these changes, including carrying out checks on contractors, and keep proper records of all right to work evidence. This will ensure you are protected from reputational damage and the risk of fines or penalties.
It’s also wise to make this part of your recruitment process – having it built in can save you time and effort in the future.
The Penalties for Getting It Wrong
If your business is found to be employing someone without the right to work, you could face heavy penalties, including fines and even jail time in the worst-case scenario. The best way to avoid this is by maintaining a robust system for conducting and documenting right to work checks.
By following these steps, you’ll ensure that your business stays compliant and avoids unexpected issues in the future. However, if you have any concerns or need more help getting your processes up to date, remember that you have unlimited access to expert advice through the Chamber HR Advice Line on 01455 852 037. Additionally, you can book a complimentary, no-obligation One2One Business Review with an HR Business Support Manager. We’ll review your compliance, provide tailored advice, and help you prepare for any future changes. This valuable benefit is included at no extra cost to you as part of your membership with Staffordshire Chamber.