The hidden risk: why your right to work checks might cost you £60,000

30 Oct 2025

By Albany HR.

As an expert HR consultant in Edinburgh, I’ll explain why getting your right to work checks wrong can lead to significant fines and how to ensure your business stays compliant.

Hiring new talent is an exciting time for any business owner. You’ve found the perfect person, they’re ready to start, and you’re looking forward to them contributing to your success.

But there’s a crucial step that, if missed or done incorrectly, can lead to significant fines and serious headaches: right to work checks. Even if you think you’ve followed all the rules, an unintentional mistake can be incredibly costly.

As an expert HR consultant, offering HR consultancy services in Edinburgh, I often find that business owners are surprised by the strictness of these regulations. You might assume common documents are enough, but the truth is, the Home Office takes compliance very seriously.

Let’s unravel this common pitfall and help you protect your business.

The common misconception that could cost you

Many business owners mistakenly believe that seeing a National Insurance number, a P45, or even benefits paperwork is enough to prove someone can legally work in the UK. While these documents are certainly part of an individual’s employment history, they do not, in themselves, confirm a person’s right to work.

The law is very clear: these documents do not replace the legal requirement to inspect specific, original right to work documents. Relying on them leaves your business exposed to penalties, even if you genuinely thought you were doing the right thing.

The crucial legal requirements you must follow

Navigating employment law can feel like a minefield, but when it comes to right to work checks, clarity is key. Here are the non-negotiable steps you must take to stay compliant:

• Check original documents (or use approved digital services): Before your new employee starts, you must physically inspect their original right to work documents. Alternatively, you can use approved digital services for certain types of documents.
• Make clear copies and date them: You need to take and keep clear copies of these documents. Crucially, you must record the date you inspected them directly on the copy. This proves you did the check at the correct time.
• Complete all checks before day one of work: This isn’t a task for their first week; all right to work checks must be completed and verified before the individual’s first day of employment.
• Retain records for the right amount of time: Keep these records for the entire period the person is employed with you, plus an additional two years after they leave. This is vital for any future audits.

The significant risks of non-compliance

The consequences of getting right to work checks wrong are severe and can have a devastating impact on your business:

• Hefty fines: Businesses can face fines of up to £45,000 per illegal worker. For repeat offences, this can escalate to a staggering £60,000 per worker. This isn’t a small penalty; it could cripple an SME.
• No protection for unintentional mistakes: The law doesn’t offer a grace period for errors. Even if you made a genuine mistake or were unaware of a specific rule, you’re still liable for penalties.
• Increased enforcement: The Home Office is actively increasing its enforcement activities, meaning the chances of your business being audited are higher than ever.

This isn’t just about a fine; it’s about the financial hit, the stress, and the potential damage to your business’s reputation. Avoiding these issues allows you to focus on what you do best: growing your business.

Practical steps to protect your business

Feeling a bit overwhelmed? Don’t worry. Here are some practical steps you can take to strengthen your right to work compliance:

• Audit your current process: Take a fresh look at how you currently conduct right to work checks. Are there any gaps? Are you consistently following all the rules?
• Train your hiring team: Ensure anyone involved in recruitment, from managers to administrators, is fully trained on the correct procedures and understands their responsibilities.
• Implement a documented system: Put a clear, step-by-step process in place for every new hire. This ensures consistency and reduces the risk of overlooking a critical step.

How an HR consultant can help you create clarity and confidence

Navigating these complex legal requirements can be time-consuming and daunting. As an independent HR consultant, I specialise in helping businesses like yours establish robust, compliant processes, giving you peace of mind and freeing up your valuable time. I can help by:

• Reviewing your current processes: I’ll identify any gaps or areas of non-compliance in your existing right to work procedures.
• Creating compliant procedures: I’ll develop a clear, step-by-step process tailored to your business, ensuring you meet all legal requirements for every new hire.
• Training your team: I’ll provide comprehensive training for your managers and administrators, building their confidence and understanding of legal obligations.
• Providing tools and templates: You’ll get practical checklists and templates for ongoing compliance, making the process straightforward and manageable.
• Offering ongoing support: I provide continuous support, helping you stay up-to-date with any changes in legislation and significantly reducing your legal and financial risk.

Ready to ensure your business is fully protected?

If you’re tired of worrying about compliance and want to ensure your hiring process is watertight, let’s have a conversation. As an outsourced HR consultant in Edinburgh, I’ve helped many businesses navigate these challenges, transforming potential risks into seamless, compliant operations.

Book a confidential call today, and let’s discuss how the right approach to right to work checks can give you the clarity and confidence to focus on building stronger teams and a better workplace.