Right-to-Work Reforms in Construction

The UK government is consulting on proposals to extend right-to-work checks to self-employed workers and subcontractors in the construction sector. The aim is to close loopholes that have allowed illegal working while protecting legitimate businesses.

For construction firms, the stakes are high. Failure to comply can result in fines of up to £60,000 per worker, business closures, director bans and imprisonment. In this blog, we cover a practical guide to navigating these reforms.

Understanding Your Workforce

Start by reviewing your workforce thoroughly, including both employees and self-employed subcontractors. Identify who is working for you, confirm their immigration status and type of leave.

Key considerations:

• What type of visa or leave do workers hold?
• Are they legally allowed to work in the UK?
• Which workers require additional verification?

A comprehensive audit ensures you know exactly who is on your sites and whether they are legally compliant.

Sponsor Licence: Lawful Hiring of Overseas Workers

A Sponsor Licence allows businesses to legally hire skilled workers from overseas. For firms in the construction sector, this can help fill gaps while staying compliant with immigration laws.

Benefits include:

• Lawful employment of overseas talent.
• Protection against penalties associated with illegal working.
• Flexibility to plan workforce needs strategically.

Right-to-Work Checks in Practice

Proper right-to-work checks are crucial to compliance, including:

• Document verification: checking passports, visas and biometric residence permits.
• Online checks: using the Home Office online services where applicable.
• Record keeping: evidence of checks to demonstrate compliance.

For self-employed subcontractors, these checks should be conducted in the same way as for employees. 

Tip: Consider integrating ID verification support which can make the process more accurate and harder to falsify.

Proactive Compliance and Risk Mitigation 

To minimise risk, you need to be consistent with:

• Conducting regular workforce audits.
• Training staff involved in hiring and site management on correct right-to-work procedures.
• Keeping processes up-to-date with changes in legislation.

Proactive compliance protects your business from fines, reputational damage and potential legal action.

Conclusion

Right-to-work reforms are a major shift for the construction sector, but businesses that act early can turn compliance into a competitive advantage. By reviewing your workforce, obtaining a Sponsor Licence, conducting thorough right-to-work checks and maintaining ongoing compliance, you can protect your business and workforce from risk.
If you need guidance on Sponsor Licence or right-to-work compliance, expert advice can be provided to ensure your processes are fully robust and legally defensible.