The Recruitment and Employment Confederation is warning that the government's expansion of Right to Work compliance obligations from 1 October will leave businesses liable for workers elsewhere in their labour supply chain and make recruitment slower and more risk-averse.
Recruiters already check a worker's legal Right to Work before sending them out on assignment. Under the change, liability for failing to carry out the right checks — and therefore for hiring illegal workers — will extend to employers using agency workers in more complex supply chains. End hirers, main contractors, labour providers and platforms will be expected to put controls in place even if they are not the worker's direct employer, and end clients may have to run identity verification processes again where a check has already been done.
REC Chief Standards Officer Lorraine Laryea said the wider net risks burdening businesses that were not the intended target of the crackdown on illegal working.
Laryea: 'The plans cast the net far wider than necessary'
"It is a pity to see another major burden on organisations at an already tough time for trading for businesses. We fully support a tighter grip on illegal working and fully understand the government's motivation to improve regulation in other working models which did create exposure to illegal working. But our concern is that the plans cast the net far wider than necessary when so much of the labour market is already heavily regulated. It may come across as unfair to businesses that they will be responsible for workers they do not employ, however well-intentioned the policy. Extending liability in this way risks creating more red tape, slower recruitment and fewer opportunities for jobseekers."
Although ministers expect employers to recruit fairly, REC warns that heavy sanctions may encourage a more cautious approach. Faced with significant penalties, some firms could favour applicants with straightforward documentation over equally qualified candidates whose status requires additional checks — overlooking the best candidate and making poorer hiring decisions.
Laryea: keen to keep talking to government
Laryea said the confederation wants the new rules kept fair and balanced.
"We are keen to work with the government and continue the dialogue to ensure the new rules on Right to Work checks are fair and balanced, and do not add administrative burdens to businesses and organisations that were not the intended target of these changes."
Unclear employment arrangements will not necessarily shield businesses from enforcement. If the Home Office cannot determine who is responsible, it may scrutinise the contractual chain and pursue penalties against organisations further up the supply chain. REC says it has updated some of its model contracts so members and clients can establish a statutory excuse where the extended liability provisions may apply.
