What the new Right to Work legislation means for your business
On October 1, crucial changes to the UK’s Right to Work legislation will become law. The legislation promotes the move to digital Right To Work checks for UK and foreign workers. Failure to prepare and implement the required changes could see employers face fines, lose the right to hire foreign workers and for repeat offenders even face the prospect of jail time.
Prior to the pandemic, the majority of Right to Work checks were conducted in person as required under Home Office rules. Prospective employees showed documents providing evidence of their right to work to employers who stored a copy.
During the pandemic, temporary adjustments were made to these requirements in order for remote work to be facilitated, and help businesses continue to hire in lockdown. For the first time ever, in-person checks were permitted to be carried out over video calls, and job applicants were able to send a photo of their documents to employers via email.
Whilst temporary rules were successful, it increased the potential for bad actors to take advantage of circumstances and unfamiliar procedures. Therefore, to mitigate this risk but retain the benefits of a digital solution, the government has enacted a number of changes.
From October 1:
● All UK businesses must use government certified Identity Service Providers (IDSPs) to complete digital Right to Work checks
● Digital checks require the submission of documentary evidence using certified ID validation technology to verify the employee has the right to work in the UK. Other methods face the risk of being non-compliant
● Failing to comply with the new regulations can result in a civil penalty of up to £20,000 per non-compliant check, losing the ability to sponsor work visa applications for foreign nationals and even criminal convictions in serious cases
● Digital secured records need to be kept for two years after an employee exits the business
Many industries have a growing remote workforce, hospitality does not. Heavily reliant on the immigrant population, losing the right to sponsor foreign work visas if manual RTW checks are found to be non-compliant should present the impetus for hospitality businesses to adopt digital RTW checks. What happens if the hospitality sector loses the right to hire foreign workers? It can’t survive..
Despite the short time until these laws come into force, many businesses are unprepared for the changes. Given the significance of daily headlines this is not unsurprising and yet repercussions from not being ready in time could be huge. Any business that feels less than well informed about these imminent changes in the law should engage with a certified IDSP as soon as possible. The list of government certified providers and their contact details can be found on the Gov.uk website by searching for “Digital identity certification”.
Digital Right to Work checks mark a significant and positive change in the way employers can perform these checks. Right to Work checks are an essential part of onboarding. Now more than ever, onboarding is a critical employee experience that defines company culture and drives competitive differentiators.
In a highly competitive employment market that suggests little short to medium-term relief, the changes in Right to Work legislation should be considered an opportunity for British hospitality businesses. Acting now can ensure legal compliance, avoid potentially substantial repercussions while delivering a great employee experience that leaves new hires feeling better about the company, which results in a more engaged employee who achieves full productivity faster and typically stays employed longer.
Russell King is the CEO and founder of Xydus, one of a handful of government certified Identity Service Providers (IDSPs).
