Threat to major contractors as Right to Work liability moves up chain

Major contractors and housebuilders could be held liable for illegal working in their supply chains even if they have no direct contract with the operatives involved, under the government’s new Right to Work scheme, which comes into force on 1 October. 

From next month, the Home Office said a property developer using a chain of contracts to engage subcontractors "may be treated as the employer of any individuals who personally carry out work" and may face a civil penalty if a subcontractor further down turns out to have engaged an illegal worker. 

Firms that breach the extended liability rules face fines of up to £60,000 per head. Knowingly employing someone without the right to work in the UK can also lead to criminal convictions and prison sentences of up to five years.

Hudson’s managing director Ian Anfield said: “The industry is now waking up to the reality of the new Right to Work checks, which threaten financial and reputational damage to major contractors and housebuilders over what’s happening in their supply chains. 

“We’re already seeing accreditation bodies adding Right to Work compliance for the self-employed to pre-qualification questionnaires and end clients demanding proof they have procedures in place to vet their subcontractors.”

Hudson has completed nearly 40,000 fully compliant Right to Work checks ahead of the implementation date and now holds the industry’s largest database of pre-approved operatives, letting clients see at a glance whether an operative has completed the required checks and has a statutory excuse.

Ian added: “Our extensive preparations mean there will be minimal delays for subbies getting onto sites, but companies need a culture change. 

“We urge our clients not let any new subbie start on site unless their contract has been accepted by Hudson and their right to work confirmed. We have procedures in place to ensure that subbies with the right to work can prove it quickly, with most being turned around within an hour.

“Unless companies have confirmation from Hudson that the check has been passed, they are liable for any Home Office penalties, not Hudson.”

Hudson has upgraded its Epay system to warn clients when a subbie's Right to Work check is outstanding, part of wider investment in technology and staff to minimise disruption for clients and keep onboarding as straightforward as possible. 

Ian added: “As well as requiring significant investment, the exercise has identified some highly skilled tradespeople who came to the UK legally and worked here for years with National Insurance numbers and CIS registrations, but who now have no legal right to work. 

“It is a shame because many of these are highly skilled, productive people, but they will either have to leave the UK or seek work with a company that is not carrying out the required checks, possibly pushing them into the black market. 

“The routes to gaining a legal right to work seem to be reserved for vape shops and barbers rather than the self-employed trades we need.”