Important changes to the UK Right to Work compliance framework take effect from ๐ญ ๐ข๐ฐ๐๐ผ๐ฏ๐ฒ๐ฟ ๐ฎ๐ฌ๐ฎ๐ฒ. They may affect businesses engaging self-employed individuals, consultants, freelancers and subcontractors. Therefore, it is essential to understand how the new rules apply to your business.
Extension of right to work requirements
Historically, the statutory Right to Work checking regime has primarily applied to individuals engaged under contracts of employment.
However, the revised framework extends the scope of these obligations to certain arrangements involving individuals who personally provide services, even where they are not formally classified as employees.
Consequently, businesses should not assume that engaging an individual on a self-employed or consultancy basis automatically removes the requirement to verify their entitlement to work in the United Kingdom. The application of the rules will depend on the nature of the engagement and the relevant contractual arrangements.
Contractors operating through limited companies
The changes do not necessarily extend to all services provided by independent limited companies. Genuine business-to-business arrangements may be treated differently from engagements involving individuals who provide their services personally, including through personal service companies.
It is therefore important to consider the substance of the working relationship rather than relying solely on the contractual description or invoicing arrangements.
Subcontractors, agencies and labour supply arrangements
Businesses using subcontractors, recruitment agencies or other labour providers should review their existing arrangements to establish whether additional verification responsibilities arise.
Moreover, depending on the circumstances, compliance obligations and potential liability may extend beyond the entity directly contracting with the individual performing the work. Appropriate contractual provisions, documented verification procedures and clear allocation of responsibilities are therefore particularly important.
Verification and record-keeping
Where a right to work check is required, businesses should ensure that the appropriate verification is completed before the individual commences the relevant engagement.
Checks must be undertaken using an accepted verification method, which may include the Home Office online checking service or other authorised procedures, depending on the individualโs immigration status. In addition, businesses should retain suitable evidence of completed checks and conduct follow-up checks where required.
Potential penalties
Non-compliance with the applicable Right to Work legislation may expose businesses to significant financial and regulatory consequences.
Under the civil penalty framework, penalties can reach ยฃ๐ฐ๐ฑ,๐ฌ๐ฌ๐ฌ ๐ฝ๐ฒ๐ฟ ๐ถ๐ป๐ฑ๐ถ๐๐ถ๐ฑ๐๐ฎ๐น ๐ณ๐ผ๐ฟ ๐ฎ ๐ณ๐ถ๐ฟ๐๐ ๐ฏ๐ฟ๐ฒ๐ฎ๐ฐ๐ต and ยฃ๐ฒ๐ฌ,๐ฌ๐ฌ๐ฌ ๐ฝ๐ฒ๐ฟ ๐ถ๐ป๐ฑ๐ถ๐๐ถ๐ฑ๐๐ฎ๐น ๐ณ๐ผ๐ฟ ๐ฟ๐ฒ๐ฝ๐ฒ๐ฎ๐ ๐ฏ๐ฟ๐ฒ๐ฎ๐ฐ๐ต๐ฒ๐. Serious cases may also give rise to criminal consequences or affect businesses holding immigration sponsor licences.
Recommended actions
In light of these changes, we recommend that businesses:
- Review existing arrangements with self-employed individuals, consultants and subcontractors.
- Identify engagements potentially falling within the extended Right to Work requirements.
- Review contractual arrangements with recruitment agencies and labour providers.
- Update onboarding and verification procedures where necessary.
- Ensure appropriate records are maintained and responsibilities are clearly allocated.
- Review relevant new engagements commencing from ๐ญ ๐ข๐ฐ๐๐ผ๐ฏ๐ฒ๐ฟ ๐ฎ๐ฌ๐ฎ๐ฒ and assess any ongoing verification obligations.
Conclusion
These changes represent a significant development in UK immigration compliance, particularly for businesses relying on flexible working arrangements or external contractors.
Although not every independent contractor or business-to-business relationship will fall within the expanded regime, companies should review their existing practices to ensure that the correct procedures are applied. We recommend taking a proactive approach to assessing potential exposure and implementing appropriate compliance measures.
This article provides general information and does not constitute legal or immigration advice. The application of the relevant legislation will depend on individual circumstances. Specialist immigration advice should be obtained where appropriate.
How Kelmer UK can help
Should you require assistance in reviewing your existing arrangements or assessing the potential implications for your business, our team is ready to support you.
Contact our London team at kelmer.com/london/