In the constantly evolving landscape of employment law, the Home Office's latest update on Right to Work (RTW) checks, issued on February 8, 2024, marks a significant development for employers across the United Kingdom. This comprehensive revision not only adjusts the civil penalty amounts for non-compliance but also introduces updated procedures for dealing with European Economic Area (EEA) nationals (or their non-EEA family members) who have been continuously employed since June 30, 2021, but have not secured their status through the EU Settlement Scheme. Additionally, the guidance elucidates the steps for conducting RTW checks for individuals engaged in ‘supplementary employment’. These changes underscore the government’s firm stance on illegal working and e importance of rigorous compliance mechanisms within businesses.
A Closer Examination of the Changes
The updated guidance introduces three key changes that employers must be aware of:
RTW checks serve as a fundamental component of the hiring process in the UK, designed to prevent illegal working. The Home Office regularly updates its guidance to reflect changes in legislation and enforcement strategies. These updates are crucial for employers to understand and integrate into their HR practices to avoid substantial penalties and ensure compliance.
The latest amendments signal a tightened regulatory environment where the cost of non-compliance has increased significantly. For employers, this means that ensuring the efficacy of their RTW checks and internal auditing mechanisms is more critical than ever. It also highlights the importance of staying abreast of legal changes affecting employment and immigration to mitigate risks and foster a compliant workforce.
Pros:
A Closer Examination of the Changes
The updated guidance introduces three key changes that employers must be aware of:
- Increased Civil Penalties for Non-Compliance: The Home Office has raised the stakes for employing individuals without the requisite RTW in the UK. From February 13, 2024, employers found non-compliant could face civil penalties significantly higher than before, emphasizing the need for diligent internal audits and RTW checks.
- Revised Process for EEA Nationals and Family Members: The previous grace period of 28 days for EEA nationals or their family members, who failed to apply to the EU Settlement Scheme by June 30, 2021, has been abolished. Employers must now immediately take action upon discovering an employee without the right to work, which may include reporting to the Home Office and potentially terminating employment. This change reflects a stricter enforcement approach towards individuals who have not regularized their residency status post-Brexit.
- Guidance on ‘Supplementary Employment’: The updated guidance offers clearer instructions for verifying the RTW for individuals in ‘supplementary employment’. This is particularly relevant for employers hiring sponsored workers who seek additional employment separate from their primary job role. Employers are now required to request specific evidence, such as a letter from the primary sponsor, to confirm the individual’s RTW status.
RTW checks serve as a fundamental component of the hiring process in the UK, designed to prevent illegal working. The Home Office regularly updates its guidance to reflect changes in legislation and enforcement strategies. These updates are crucial for employers to understand and integrate into their HR practices to avoid substantial penalties and ensure compliance.
The latest amendments signal a tightened regulatory environment where the cost of non-compliance has increased significantly. For employers, this means that ensuring the efficacy of their RTW checks and internal auditing mechanisms is more critical than ever. It also highlights the importance of staying abreast of legal changes affecting employment and immigration to mitigate risks and foster a compliant workforce.
Pros:
- Enhanced Compliance: The updated guidance provides clearer directions for employers, aiding in compliance with RTW legislation.
- Prevention of Illegal Working: By tightening regulations and increasing penalties, the updates aim to reduce the number of individuals working illegally in the UK.
- Clarification on Supplementary Employment: The specific guidance on supplementary employment helps employers navigate this complex area with greater confidence.
- Increased Administrative Burden: The new rules may require employers to invest more time and resources into compliance activities.
- Potential for Employment Disruptions: The immediate action required for EEA nationals or their family members who have not applied to the EU Settlement Scheme could lead to workforce disruptions.
- Heavier Penalties: The significant increase in civil penalties for non-compliance could pose financial risks for businesses, especially those with inadvertent lapses in their RTW processes.