The Government is planning to roll-out a voluntary digital ID scheme in an attempt to prevent illegal working. This was originally proposed as mandatory, but due to criticisms, has rolled-back to making it voluntary. So while we wait to hear how that will impact employers’ responsibilities, here’s a rundown of the current legal requirements.

All UK employers are legally required to prevent illegal working by carrying out a right-to-work check before hiring someone. This ensures the individual is permitted to do the work offered under their immigration status.

The Home Office highlights that illegal work can lead to exploitation of workers, tax evasion and unsafe housing conditions. Employers therefore have a duty to adhere to the rules and ensure no-one is being exploited.

Non-compliance consequences

If you fail to carry out the correct checks and someone begins work illegally, you could face a civil penalty. The amount depends on:

• whether you carried out the checks in good faith
• whether you have breached the rules in the past 3 years
• whether you have breached since the scheme started

Penalties start from £45,000 per worker for a first breach and £60,000 per worker for repeat breaches. Mitigating factors may reduce the amount.

Note: Always check the current amounts on GOV.UK, as they may change.

What you must do

When hiring a new employee, you must complete a right-to-work check before their first contractual working day.
You can carry out the check by:

• manual document check face-to-face (or via video where permitted)
• using an identity service provider (IDSP) for British/Irish citizens
• using the Home Office online right-to-work check for non-British/non-Irish citizens.

For British and Irish citizens, you may do a manual check or use an IDSP.
For non-British/non-Irish citizens, you must use the online service to obtain a share code (or manual if online check is not possible).

If the employee has time-limited permission to work, you must carry out follow-up checks before that time limit expires.

How to conduct manual checks

If you use a manual document check, you must:

• ask the employee to present original documents based on the acceptable lists published by the Home Office (Section 7).
• check the documents in the employee’s presence (face-to-face or via permitted video call) and that they appear genuine and belong to the person.
• make clear copies of the documents and record clearly the date the check was done.
• verify the consistency of photograph, date of birth, name(s) and that the document is valid (not expired or cancelled) and genuine.

Note: Handle the copies in line with data protection laws (keeping them for up to 2 years after employment ends.

How to use the Home Office online check

For employees with immigration status checkable online, ask them to provide a share code and their date of birth. Use the service “Check a job applicant’s right to work: use their share code” on GOV.UK to verify.

The online check replaces the need for manual documents in that scenario and gives you a “statutory excuse” if done correctly.

Why this process matters

Conducting the correct check gives you a statutory excuse against a civil penalty — meaning if you’ve done the checks prescribed and the person still turns out to be illegal, you may avoid the penalty.

Failing to do so correctly means you risk substantial fines, disruption and reputational damage.

Quick checklist for small businesses

• Carry out the right-to-work check before the employee starts working
• Determine whether the applicant is British/Irish or needs an online check
• Use the correct method: manual or online as applicable
• Make and keep copies of documents (or online result) and record the date
• If the employee’s permission is time-limited, schedule a follow-up check
• Treat all applicants equally — you must not discriminate on the basis of nationality, race or any protected characteristic when carrying out checks

If you’d like help setting up an onboarding process to integrate right-to-work checks clearly and compliantly for your business, get in touch.