Lawful UK Residency Does Not Automatically Grant the Right to Work

Case Overview

A restaurant in Middlesbrough recently challenged a civil penalty notice of £15,000 issued by the Secretary of State for the Home Department under Section 15 of the Immigration Asylum and Nationality Act 2006 (IANA 2006). The restaurant argued that their employee was lawfully present in the UK and that they were not given the opportunity to mitigate the penalty. Accountants can assist businesses in understanding potential liabilities and compliance requirements.

However, the Court emphasised that the purpose of the 2006 Act is to discourage illegal employment. Employers are responsible for conducting all necessary checks on employees’ right to work, in accordance with Section 15(3) of the Act.

Key Lessons for Employers

• Conduct right-to-work checks: Do not assume lawful residency automatically grants the right to work.
• Use ID verification tools: Identity service providers offering Identity Document Validation Technology (IDVT) can help ensure compliance.
• Keep documentation: Maintain records of all right-to-work checks to demonstrate due diligence in case of regulatory inspection.
• Mitigate risk: Regularly update HR policies and train staff to perform compliance checks correctly.

Real-World Application

• Integrate right-to-work checks into onboarding procedures.

• Ensure HR and payroll teams are trained to identify valid documentation and use IDVT services.

• Regularly audit employee files to confirm ongoing eligibility and compliance. Businesses may consult a tax advisor Wimbledon to ensure proper compliance and documentation.

Verify Employee Right to Work to Avoid Compliance Risks with Cigma Accounting

Employing staff without properly confirming their right to work can result in hefty fines and legal issues, even if they are lawful UK residents. Cigma Accounting supports businesses across Farringdon, Angel, and Blackfriars in implementing correct right-to-work checks with guidance from a trusted payroll services London provider.

Whether you are onboarding new employees or reviewing existing records, professional advice ensures compliance while minimising risk. Cigma Accounting provides tailored support for businesses in London, with physical offices across London, delivering reliable expertise from a dedicated accounting services London team.