Ignorance isn’t bliss: The cost of non-compliance with RTW legislation
Right to Work (RTW) checks are a legal requirement - with serious financial and reputational consequences for employers who get them wrong. In Q2 2024 alone, UK businesses were hit with a record-breaking £21.5 million in illegal working fines, a 165% increase from the previous quarter.
The government has ramped up enforcement efforts, introducing stricter penalties, increased Home Office audits, and even director disqualifications for repeat offenders. With fines now reaching up to £60,000 per worker, non-compliant businesses risk crippling financial penalties, loss of operating licenses, and long-term reputational damage.
So why are so many businesses still unprepared? A recent poll found that half of UK employers admit they aren’t ready for the latest RTW legislation changes. Some are unaware of new digital verification requirements, while others wrongly assume their current processes are compliant. But ignorance is not a defence in the eyes of the law.
What’s Changed? Breaking Down the Latest RTW Legislation
The UK government’s crackdown on illegal working has led to the most significant changes in Right to Work (RTW) compliance in years. The timeline below covers the key milestones in the changing RTW landscape over the past 2-3 years:
April 2022: Introduction of Digital Right to Work Checks
Employers were permitted to use Identity Service Providers (IDSPs) to conduct digital RTW checks for British and Irish citizens holding valid passports. This change aimed to streamline the verification process and reduce the administrative burden on employers.
October 2022: Reversion to Pre-Pandemic Right to Work Checks
During the COVID-19 pandemic, temporary adjustments allowed employers to conduct RTW checks remotely, accepting scanned documents via email and verifying them over video calls. These adjusted measures concluded on 30 September 2022. From 1 October 2022, employers were required to revert to traditional in-person document checks or utilize approved digital verification methods.
February 2024: Increased Penalties for Non-Compliance
The penalties for employing individuals without the legal right to work in the UK were significantly increased:This escalation reflects the government's commitment to deterring illegal employment and ensuring robust compliance.
First Offence: Fines increased from £15,000 to £45,000 per illegal worker.
Repeat Offences: Fines rose from £20,000 to £60,000 per illegal worker.
September 2024: Decommissioning of Biometric Residence Cards
Employers were informed that Biometric Residence Permits (BRPs) and Biometric Residence Cards (BRCs) would no longer be accepted as valid proof of right to work. Instead, non-UK nationals are required to provide a share code, which employers must verify through the Home Office online service.
February 2025: Consolidation and Streamlining of Guidance
The Home Office released revised guidance to assist employers in conducting RTW checks. This update aimed to simplify the process, providing clear instructions on establishing a statutory excuse against liability for civil penalties.
The Real Cost of Non-Compliance
Many employers assume that non-compliance with Right to Work (RTW) checks will only lead to financial penalties, but the impact runs far deeper. A failure to follow the correct verification processes can cause severe operational disruptions—from recruitment delays and hiring restrictions to the complete loss of ability to employ overseas workers. As the Home Office intensifies enforcement efforts, businesses that don’t take RTW compliance seriously could find themselves unable to function effectively.
In the past, many employers assumed they wouldn’t be audited unless there was a serious complaint. That is no longer the case. The Home Office is actively increasing audits, conducting both scheduled and unannounced inspections to check employer compliance with RTW regulations.
If a business fails an audit—whether due to improper record-keeping, outdated verification methods, or employing someone without the correct status—the consequences can be severe. Employers may face immediate hiring restrictions, civil penalties, and even temporary business suspensions while they work to rectify compliance failures.
Even if a business avoids major penalties, the operational burden of correcting non-compliance can be overwhelming. Employers that fail to keep accurate RTW records often find themselves needing to redo checks for their entire workforce, adding unnecessary admin work, delays, and costs.
In industries with high staff turnover, such as retail and hospitality, relying on outdated manual checks can create an endless cycle of compliance risks and rework. Instead of focusing on hiring the right people quickly, HR teams are bogged down by correcting past mistakes—something that could have been avoided with a robust digital RTW solution.
One of the most damaging consequences of RTW non-compliance is the revocation of a Skilled Worker visa sponsorship licence. Without this licence, businesses that rely on international talent cannot legally hire or retain overseas employees, leading to critical staff shortages and operational setbacks.
This isn’t a distant threat—it’s already happening. In Q2 2024 alone, over 1,000 businesses lost their sponsorship licences due to compliance failures, a 100% increase from the previous quarter. For organisations in sectors like hospitality, healthcare, and tech, where overseas workers make up a significant portion of the workforce, losing this ability could be devastating.
Can Your Business Afford the Disruption?
RTW compliance failures don’t just result in fines—they can cripple a company’s ability to operate effectively. Losing key staff, facing recruitment bans, and dealing with extensive compliance rework are far more damaging than any one-time penalty.
With government enforcement becoming more aggressive, businesses need to take proactive steps to secure compliance now—before they become the next case study for non-compliance.
Don’t Wait for a Fine to Fix Compliance Gaps
If half of UK businesses admit they aren’t ready for the latest Right to Work (RTW) changes, how many more think they’re compliant but actually aren’t? The most dangerous compliance risks aren’t always obvious—many businesses fall into hidden blind spots that could cost them thousands in fines or even their ability to hire staff.
Some employers still rely on outdated manual checks, assuming that visual ID verification is enough. Others fail to update their processes when legislation changes, mistakenly believing that what worked before still works now. Then there are those who assume that RTW enforcement won’t affect them—until an audit proves otherwise.
But ignorance isn’t bliss when it comes to compliance.
How to Stay Ahead of the RTW Crackdown
Businesses that continue with manual checks or ignore digital verification options are playing a high-risk game. With government audits increasing and record fines already hitting UK businesses, employers need to take action before they become the next headline.
Ditch the paperwork—automate ID & Right to Work verification in a single step.
Be audit-ready—securely store compliance records for instant access.
Reduce hiring delays—fast, digital checks mean onboarding in minutes, not days.
Protect your business—stay compliant, avoid penalties, and prevent fraud risks.
With enforcement at an all-time high, the smartest businesses are those that future-proof their compliance today. Don’t wait for a Home Office audit to expose compliance gaps—let’s get it right now.