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Comment Magazine Issue 7

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Employing foreign workers<br />

now and in a post-Brexit world<br />

Charlotte Allery outlines the key practical considerations for business and<br />

family employers taking on foreign workers in the UK and considers the<br />

unknown post-Brexit landscape.<br />

The ease of travel and mobility means<br />

that the world has become a smaller<br />

place and businesses are seeing an<br />

increasing number of foreign applicants.<br />

With skills shortages in most sectors<br />

and an ever-globalising world, many<br />

employers value these overseas workers<br />

with the knowledge and skills they can<br />

bring.<br />

Whilst foreign workers can be a valuable<br />

addition to any business, employers need<br />

to bear in mind their legal obligations.<br />

Recent figures from the Home Office reveal<br />

that getting it wrong can be an expensive<br />

mistake, with £10.5m in penalties being<br />

issued to employers with illegal workers<br />

between 1 January and 31 March 2017.<br />

Right to work in the UK<br />

All employers, irrespective of size or<br />

sector, are required to prevent illegal<br />

working in the UK by confirming that<br />

all potential employees and workers are<br />

entitled to work in the UK.<br />

Employers that fail to adequately carry<br />

out a right to work check and employ an<br />

illegal worker can face tough sanctions,<br />

including a penalty of up to £20,000 per<br />

illegal worker. It is also a criminal offence<br />

to knowingly employ someone who<br />

does not have the right to work in the<br />

UK, which can result in a prison sentence<br />

of up to five years and an unlimited fine.<br />

These checks involve following<br />

three steps for each worker:<br />

1. Obtaining specific original documents<br />

as specified by the Home Office, such<br />

as a British passport;<br />

2. Checking the validity of the<br />

documents in the presence of<br />

the worker; and<br />

3. Making and retaining a clear copy,<br />

together with the date of the check.<br />

We recommend that offers of<br />

employment are made conditional on<br />

the individual’s eligibility to work in the<br />

UK being satisfied and, if you are in any<br />

doubt about an individual’s right to work<br />

in the UK, seek legal advice or contact the<br />

Home Office directly before employing<br />

the individual.<br />

Employment rights<br />

Foreign employees working for<br />

employers in the UK will be entitled<br />

to the same employment rights as UK<br />

citizens, such as the National Minimum<br />

Wage, paid annual leave and protection<br />

from discrimination.<br />

However, employers should be<br />

mindful that some foreign workers may<br />

be restricted on the number of hours<br />

they can work, in what capacity and for<br />

what period. Information on restrictions<br />

can be ascertained from an applicant’s<br />

documentation, such as a visa. Further<br />

information should be sought from the<br />

Home Office if there is any uncertainty.<br />

Avoiding discrimination claims<br />

Whilst employers are, of course, entitled<br />

to recruit the best candidates for a<br />

job, race, nationality or ethnicity of a<br />

candidate should not be a factor in the<br />

recruitment process. Race is a protected<br />

characteristic under the Equality Act<br />

2010, meaning that an individual will<br />

have a claim for discrimination if they<br />

have been treated less favourably on the<br />

basis of their race or nationality.<br />

Employers should ensure that they<br />

are carrying out right to work checks<br />

consistently for all potential employees.<br />

Remember not to make any assumptions<br />

about a person’s immigration status on<br />

the basis of their race, nationality, ethnic<br />

origins, accent or the length of time they<br />

have been resident in the UK. A blanket<br />

policy of only carrying out right to work<br />

checks on individuals who appear to<br />

be ‘foreign’ is likely to lead to claims of<br />

discrimination.<br />

What about the self-employed?<br />

Whilst the legal obligation to carry out<br />

right to work checks will not apply to<br />

any self-employed contractors<br />

you engage, there are compelling<br />

commercial reasons for carrying out<br />

such checks. In the event that the<br />

individual’s self-employed status is<br />

challenged and they are found to<br />

instead be an employee or worker,<br />

you will have already complied with<br />

your legal obligations in respect of<br />

immigration checks.<br />

Further to this, if an illegal worker is<br />

removed from your business, it may<br />

disrupt your operations and could cause<br />

widespread reputational damage. From a<br />

risk management perspective, the illegal<br />

status of your contractors or consultants<br />

may also result in an invalidation of<br />

any insurance you hold, such as public<br />

liability insurance.<br />

What if I employ foreign nationals in<br />

my home?<br />

Where you employ a nanny, carer or<br />

personal assistant to carry out work for<br />

you in your own home, you will need to<br />

comply with your legal obligations as an<br />

employer in the same way as a company<br />

would. As such, you will need to carry out<br />

right to work checks on these individuals,<br />

regardless of their nationality. You will<br />

also need to consider all other usual<br />

employer obligations, such as income<br />

tax and National Insurance deductions,<br />

paying the National Minimum Wage etc.<br />

A post-Brexit world<br />

In the immediate and mid-term<br />

aftermath of the UK’s vote to leave the<br />

EU and Theresa May’s triggering of Article<br />

50, nothing has changed. Employers<br />

should continue to employ EU workers<br />

as they always have done, ensuring that<br />

right to work checks are carried out as<br />

currently stipulated by the Home Office.<br />

However, the long-term impact on the<br />

employment of EU nationals is unclear.<br />

In June this year, Theresa May<br />

confirmed that EU nationals and their<br />

families who have spent five years in<br />

the UK will be able to apply for ‘settled’<br />

status to obtain the same rights as UK<br />

citizens. However, the Government’s<br />

further immigration plans are anything<br />

but settled. In September this year, a<br />

Home Office document leaked to the<br />

press outlined for the first time how the<br />

Government intends to approach the<br />

politically charged issue of immigration.<br />

Whilst the leaked document was in<br />

draft form and has not yet been signed<br />

off by Ministers, it suggests that free<br />

movement of labour will end upon exit<br />

from the EU in March 2019. Among its<br />

82 pages, the document also suggests<br />

that low-skilled migrants will be offered<br />

residency for a maximum of two years,<br />

while those in high-skilled occupations<br />

will be granted permits to work for a<br />

longer period of three to five years. It also<br />

proposes that the UK will adopt a more<br />

selective approach to immigration based<br />

on the UK’s economic and social needs.<br />

The Government has said that it will be<br />

setting out its initial proposals for a new<br />

immigration system later in the autumn.<br />

Whether these leaked ideas are the reality<br />

of the future, and what this ultimately<br />

means for employers relying on EU<br />

labour, unfortunately remains to be seen.<br />

Coffin Mew’s Top Tips<br />

• Don’t forget to carry out right to<br />

work checks on all employees or<br />

workers.<br />

• If you are in any doubt about an<br />

individual’s immigration status,<br />

seek legal advice or contact the<br />

Home Office directly before<br />

employing them.<br />

• If EU nationals you employ<br />

are concerned about their<br />

immigration status, reassure<br />

them that there is no immediate<br />

impact on their employment.<br />

• If you typically employ EU<br />

nationals, keep abreast of the<br />

Government’s immigration plans<br />

post-Brexit.<br />

• If a foreign worker does not have<br />

the right to work in the UK, you<br />

may be able to issue sponsorship<br />

certificates to the individual so<br />

that you can employ them. In<br />

order to do this, you will need<br />

a sponsor licence. Contact UK<br />

Visas and Immigration directly<br />

to confirm your eligibility as a<br />

sponsor and the type of licence<br />

you require.<br />

Contact us direct<br />

Charlotte Allery<br />

Solicitor - Commercial<br />

& Employment Services<br />

023 9236 4310<br />

charlotteallery@coffinmew.co.uk<br />

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