Prior to this update, the guidance stated that employers 'may wish' to check that their contractors conduct right to work checks. The updated guidance therefore places a greater onus on businesses (particularly sponsors) to ensure that their contractors are conducting the correct checks.
Why is this being encouraged?
The updated guidance sets out various public policy reasons for this recommendation, including:
- Reputation and disruption - the removal of illegal workers from a business may lead to operational disruption and reputational damage. Maintaining a positive public image is crucial in today's market, and any association with illegal employment practices can be detrimental to a company's brand.
- Health and safety and insurance - failing to verify the identity, qualifications, and skill levels of individuals working for a business could negatively affect health and safety, and safeguarding responsibilities and may invalidate insurance cover.
- Best practice - separate legislation for recruitment businesses requires right to work checks to be established. Right to work checks are also required under most international best practice standards and their accompanying audits.
Consequences of failing to comply
Failure to comply with the Home Office's recommendation in relation to contractors will not result in a civil penalty in the same way as it does for employees without a valid right to work in the UK. However, depending on the circumstances, it may be considered a compliance issue for sponsor licence holders.
Practical guidance
In light of the Home Office's update, businesses should now take a proactive approach in ensuring that their entire supply chain complies with right to work checks. For sponsors this is something that they are now required to do. This not only helps in maintaining legal compliance but also protects businesses from potential operational, reputational, and financial risks.
To do this, businesses should review their current right to work practices to ensure that there is a process in place to conduct right to work checks on those who are employed, engaged, or supplied by contractors to the business, or to check that they are being conducted by the contractor or labour provider. Please let us know if this is something that we can assist with.
