Right to Work Checks – Guide for EmployersLexLeyton
Employers are required to carry out right to work checks in accordance with government guidance to ensure that their employees have permission to work in the UK. However, with the end of freedom of movement for European nationals and the implementation of a new UK immigration system, employers need to understand the new regime and make sure that they carry out compliant checks.
Failing to get it right could lead to costly fines and impact on their ability to employ overseas nationals. Here, we look at these changes and the steps employers must now take to ensure compliance with the immigration regime. Unless otherwise stated, references in this article to EEA nationals include EU and Swiss nationals.
Right to work checks – Obligations on Employers
All employers have an obligation to prevent illegal working in the UK and this includes carrying out right to work checks on all employees before they start work. If an employee’s right to work is temporary (e.g. because they have a time-limited visa), the employer must conduct a further follow-up check shortly before their right to work is due to expire.
An employer commits a criminal offence if it knows, or has reasonable grounds to believe, that the person does not have a lawful right to work in the UK. An employer commits a civil offence if it unknowingly employs a person, without the lawful right to work in the UK. The defence to the civil offence is to carry out a compliant right to work check before the person starts employment (the ‘statutory excuse’). There is no defence to the criminal offence.
Right to work checks – Process to Follow
The right to work check is a three-stage process of obtaining, checking and copying relevant identity documents in accordance with the current government guidance. This is typically done by checking original documents (although there were temporary changes in place to facilitate right to work checks during COVID-19 until the 20th June 2021), but if you have their ‘share code’ checking a job applicant’s right to work details including the types of work they are allowed to do and how long they can work in the UK for (if there is a limit), can be done through the Governments online checking service.
Whilst right to work checks must be carried out before the employee commences work, it is usually best to conduct these as late in the recruitment process as possible to avoid job applicants arguing that any recruitment decisions have been based on their nationality or their immigration status.
Making any offer of employment conditional on the individual having the lawful right to work in the UK is also advisable.
Right to work checks – EEA nationals
Following the introduction of the new immigration system, employers should continue to carry out right to work checks on all new recruits. The impact of Brexit and the changes to the immigration system will principally affect right to work checks in respect of EEA nationals. The procedure in respect of non-EEA nationals seeking to work in the UK remains unchanged.
Under the new system, the majority of EEA nationals who arrive in the UK after 31 December 2020 are likely to require a skilled worker visa in order to be able to work unless they benefit from an alternative route of entry (such as Irish citizenship).
However, EEA nationals who entered the UK before 11pm on 31 December 2020 have until 30 June 2021 to apply for settled or pre-settled status under the EU Settlement Scheme (‘EUSS’). If successful, this will give them the right to work in the UK. Those who have applied by the deadline but are not yet granted status under the EUSS can continue to work in the UK as they do now and maintain their right to work until their application is determined, including pending the outcome of any appeal against a decision to refuse status. Alternatively, EEA nationals and their family members will need to obtain another form of UK immigration status to live and work in the UK after 30 June 2021.
EEA nationals recruited between 1 January 2021 and 30 June 2021
For EEA nationals being recruited between 1 January 2021 and 30 June 2021, employers can rely on a passport or national identity card, for example, from an EEA national. Alternatively, if the individual has been granted permission under the EUSS, the individual can choose to share evidence of their right to work using the online service.
However, in order not to discriminate on the basis of nationality, employers cannot require EEA nationals to show proof of their status under the EUSS, but they may wish to inform individuals of the EUSS and the potential consequences of failing to apply before the deadline of 30 June 2021.
This does potentially mean that an EEA national could come to the UK on or after 1 January 2021 without the lawful right to work here (i.e. be an illegal worker) and the employer would still have a defence to the civil offence by checking the person’s passport. However, if the employer is aware (or has reasonable grounds to believe) that the person does not have a lawful right to work in the UK, they may commit the criminal offence.
EEA nationals employed from 1 July 2021
The Home Office have confirmed that the COVID-19 adjustments for right to work checks will end on 20th June 2021. From 21st June, right to work checks must be carried out using physical documents again, or by using the online service as per this guidance.
From 1 July 2021 onwards, right to work checks will change and all EEA nationals will be required to demonstrate their right to work through evidence of their immigration status, rather than their nationality.
The government has stated there will be no requirement for retrospective checks to be undertaken in respect of EEA nationals who were employed on or before 30 June 2021. Employers will maintain a continuous statutory excuse provided the initial right to work check was undertaken in line with right to work legislation and the Home Office guidance.
One caveat to the position on retrospective checks may be in TUPE situations, where the lawful right to work of any incoming employees should always be verified by a transferee as part of its employee liability information checks and due diligence processes.
Right to Work Checks – The Importance of Record-keeping
Employers must retain a copy of each employee or worker’s documentation evidencing their right to work and they must also keep a note of the date the check was carried out. Where a check has been conducted online, employers must keep a record that it has been done by printing out or taking a screenshot of the relevant page. These records of right to work checks should be retained throughout the duration of the employee’s employment, and for a further two years after their employment has ceased. Employers should have in place a clear record retention policy and schedule, recording the lawful reasons for retaining this data.
Right to Work Checks – Penalties for Getting it Wrong
If an employer is found to be employing someone illegally and they have not carried out the prescribed checks, the sanctions may include:
- a civil penalty of up to £20,000 per illegal worker
- a criminal conviction carrying a prison sentence of up to 5 years and an unlimited fine
- closure of the business and a compliance order issued by the court
- not being able to sponsor migrants
The implications of employing illegal workers are significant, particularly given the inclusion of EEA nationals within the new immigration regime.
Right to Work Checks – Key Steps for Employers
- Familiarise yourself with the right to work checks for EEA nationals, including what is needed now and what will be needed after 1 July 2021.
- Look out for further changes to government guidance in the coming months on conducting right to work checks from 1 July 2021.
- Encourage all staff to apply under the EUSS in good time before 30 June 2021, if they are eligible (although this is not a legal requirement).
- Ensure you have in place reliable document checking systems to assist with carrying out right to work checks.
- Put in place comprehensive and consistent right to work checking procedures, and ensure all necessary staff are appropriately trained in following the procedures.
- Keep records of checks carried out for all staff and ensure these records are retained for two years post-employment.
For more information on the impacts of Brexit upon your current and prospective European staff download our employer guide pack
For a free consultation, support or advice on any issues raised by the above don’t hesitate to reach out to our employment law expert team on email@example.com