Right to work checks – Financial risks and compliance steps for business owners

29 April 2025

Right to work checks – Financial risks and compliance steps for business owners

Right to work checks form an important part of business risk management, particularly now that the Government has increased the financial penalties for non-compliance.

From 2024, employers who fail to carry out correct checks face fines of up to £45,000 per worker for a first breach and up to £60,000 for repeat breaches.

These costs can have a big impact on businesses of all sizes, affecting cash flow, profitability, and business reputation.

Approved methods for right to work checks

Employers have three options to verify an employee’s right to work:

  • Manual checks – Reviewing and copying original identity documents.
  • Online checks – Using the Government’s online checking service for employees with digital immigration status.
  • Identity Service Provider (IDSP) checks – Using certified providers to check valid British or Irish passports digitally.

Whichever method is used, employers must retain dated copies of documents and keep records securely for the duration of employment plus two years after.

Common compliance risks for employers

Problems often arise when checks are rushed or poorly documented. Employers must:

  • Ensure documents are valid and current (with limited exceptions)
  • Verify that names, photographs, and dates of birth match the employee
  • Schedule follow-up checks for employees with limited working rights

Right to work checks should be integrated into recruitment and payroll processes from the outset.

Failing to do so can result in compliance gaps that could be costly if the Home Office carries out an inspection.

Financial and operational impact of non-compliance

The financial penalties for employing someone illegally are high, but the consequences do not stop there.

Businesses risk disrupted operations, increased audit scrutiny, damaged client relationships, and recruitment difficulties.

In sectors with seasonal or temporary workforces such as hospitality, tourism, and construction, the risk is even greater if right to work checks are not managed properly.

Reducing risk with better right to work checks

Employers can take a few straightforward steps to improve their right to work processes and reduce the risk of financial penalties:

  • Review and update recruitment procedures to ensure right to work checks are consistently carried out
  • Maintain clear records and integrate documentation into employee files
  • Carry out internal reviews of existing employee right to work evidence
  • Train HR and management staff on the latest checking requirements

Putting the right steps in place protects your business from costly fines and gives you the confidence that your operations are secure and well-managed

We help businesses build right to work processes that support compliance and protect financial stability.

Our team can assist with process reviews, audit preparation, and ongoing compliance advice.

If you would like support in reviewing your right to work procedures or wider business risk management, please contact us today.

Latest News

Are you on target to meet your business and financial goals in 2025?

We are sprinting towards the end of the year and... Read more

Can your business keep pace with the perks of self-employment?

Many businesses are feeling the pressure of recruitment challenges at... Read more

How can small businesses manage late payments?

With less than a month to go until the Autumn... Read more

The pitfalls and promises of the business blitz – Will your business struggle or succeed?

With the Autumn Budget looming ominously on the horizon, Rachel... Read more

Is your business ready for changes to Business Property Relief?

First announced in last year’s Autumn Budget, the changes to... Read more

HMRC is worried about director National Insurance Contributions – Are yours accurate?

As different parts of financial regulations change, it can often... Read more

Get in touch

This field is for validation purposes and should be left unchanged.
If you would like to see full details of our data practices please visit our Privacy Policy.

843 Finchley Road,
London, NW11 8NA

This field is for validation purposes and should be left unchanged.

If you would like to see full details of our
data practices please visit our Privacy Policy.

Glazers Chartered Accountants is a partnership. This information has been produced for general interest. It is therefore essential to take advice on specific issues. We are unable to take responsibility for any outcome resulting from acting upon, or refraining to act upon, this information. In accordance with the disclosure requirements of the Provision of Services Regulations 2009, our professional indemnity insurers are Prosure Solutions Limited, 150 Minories, London, EC3N 1LS. The territorial coverage is worldwide excluding any action for a claim bought in any court in the United States of America or Canada.

© Glazers 2025. Company No. 05962817

Website designed by JE Consulting