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British businesses need to be aware that there are crucial changes to the UK’s Right to Work legislation, which are set to come into force in October 2022.

Xydus, one of only a handful of government-certified digital identity providers (IDSPs), is urging businesses to act now to ensure compliance and avoid repercussions.

Right to Work checks used to be conducted in person, however, temporary rules were brought in during the pandemic which meant that for the first time ever, in-person checks were carried out over video calls, and job applicants were able to send a photo of their documents to employers via email.

Digital Right to Work checks are now being made permanent but with additional rules to reduce the risk of fraud.

So, from the 1st of October 2022:

  • All UK businesses must use government certified Identity Service Providers (IDSPs) to complete digital Right to Work checks.
  • Digital checks require the submission of images of personal documents using certified ID validation technology to verify the employee’s right to work. Any other method is non-compliant.

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  • Failing to comply can result in a civil penalty of up to £20,000 per non-compliant check, losing the ability to sponsor work visa applications for foreign nationals and even criminal convictions in serious cases.
  • Records need to be kept for up to two years after an employee exits the business.

Russell King, CEO of Xydus, whose identity verification technology has been leveraged by the NHS, PwC, and Hitachi, said, “This legislation affects all UK businesses. Digital Right to Work checks mark a significant change in the way employers must perform these checks and complete employee ‘onboarding’ procedures.

“Despite the short time until these laws come into force, many businesses we hear from are rather unprepared for the changes. Given the significance of daily headlines this is not unsurprising.

“We therefore strongly advise any business that feels less than well informed about these imminent changes in the law to engage with a certified IDSP as soon as possible. The list of government certified providers and their contact details can be found on the Gov.uk website by searching for “Digital identity certification”.

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

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With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
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