October is coming: Have you considered the RTW changes?
On the 1st October, the Home Office will be implementing the most significant change to Right to Work legislation in the UK for more than 10 years. This includes extended liability relating to penalties for employing a worker without the Right to Work in the UK and expanding the scope of which these mandatory checks are required. Within this blog, we will explain the changes, their implications and how to prepare for it once it goes live.
Extended Scope
Traditionally speaking, Right to Work checks have only been applicable for employees of both direct and indirect engagements of employment. However, in the last year the number of illegal worker arrests amounted to nearly 9,000, almost three times larger than 2024. With this added pressure to reduce illegal working, the Home Office has expanded the scope beyond Right to Work checks for those engaged within employed arrangements; those engaged on a self-employed basis (for example within the Construction Industry Scheme) will now also be required to have Right to Work checks conducted. Fortunately, Clipper already completes these checks for Self-Employed solutions, but it is worth noting in case this is not the standard process for other Umbrella providers. It is recommended that recruitment agencies apply rigid audits to ensure these checks are being completed beyond October in every instance.
Extended Liability
Just like much of the government's recent legislation changes, they are again relying on using the wider supply chain to 'police' those downstream. Similar to JSL earlier this year, the changes to Right to Work checks now include a concept known as ‘Extended Liability’ in which penalties can now extend beyond the employer in certain circumstances. For example, if a company found within the supply chain is either aware of workers being paid illegally, or the employer cannot be easily identified, they can now be subject to the civil penalties. These offences include a fine of £45,000 for the first offence, £60,000 for a repeated offence. Additionally, should anyone within a business in the supply chain be aware of the provision of illegal workers and continues to supply them, the directors could face imprisonment of up to five years and the company will receive an unlimited fine.
How to prepare
For some, this could be a bit of a curveball in operational parameters, however there are ways to prepare and keep your business compliant. Firstly, it is strongly encouraged that you audit the supply chain providers to ensure there is a paper trail establishing who is responsible for the check, for both employees and subcontractors; verbal confirmation between companies is not enough to establish this fact, it has to be written and easily identifiable if requested. This is usually included in terms of business between the agency and the umbrella. Secondly, ensure you are carrying out your own Right to Work checks.
For many recruitment agencies though, not a lot will need to change; where Right to Work checks are already been conducted prior to an assignment starting, you will only need to review the contractual chain.
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