Impact of Digital ID checks on hiring new staff

Whilst the government has backtracked on plans for a mandatory digital ID card, by 2029 all right to work checks will need to be done digitally with the proposed digital ID programme being optional. Employers will need to consider how they respond to the changes when they are announced and ensure they are compliant with current rules.

One of the government’s key aims is to reduce illegal immigration into the UK for people looking to work illegally.

What are employers current responsibilities and how will the new scheme affect them?

Employers already need to check and confirm the right to work status of employees otherwise they face tough financial penalties for hiring illegal workers.  They should make sure they keep detailed records of the checks and records of any documents in case they are challenged in the future.  They can also use the Home Office’s checking service to verify an employee’s work status.

Currently, business owners who fail to carry out checks and knowingly employ an illegal worker could be jailed for up to five years, be fined £60,000 per illegal worker, lose their sponsorship licence and have their business closed.  The adverse publicity and loss of workers could impact the business’ ability to continue operating, so employers should consider these consequences carefully.

In a recent ‘crackdown’ on illegal immigration, the government announced that more than 8,000 people were arrested on suspicion of working illegally after 11,000 raids carried out between October 2024 and September 2025.

This is a 64% year on year increase for arrests and 51% for visits. Over 1,050 foreign nationals have already been removed from the country after these operations.

The government has been targeting sectors such as the gig, casual, subcontracted and temporary worker economy and businesses such as beauty salons, barbers, car washes and delivery drivers.

The new system when announced is hoped to provide a similar, but more consistent way for employers to check someone’s right to work and make it harder for forged documents to be used.

Following the recent crackdown, the government is also working with industry partners in some of these sectors such as the deliver food platforms, who have already strengthened their ID checks in response.  There will also be a data sharing agreement with these employers to share locations of asylum accommodation to stop those housed there seeking work illegally.

If you are an employer, you should review your current procedures for checking staff and ensure you have carried out all of the necessary checks and have copies of the paperwork on file. In the event you find you have employed an illegal worker this should be reported to the Home Office and the employment terminated. Business owners should also check the employment status of self-employed workers as they can still face penalties if not directly employed. If you have any questions about employing staff or would like a review of your existing procedures, get in touch with our team.