Changes to the law on preventing illegal working came into effect on 1 May 2004. The changes introduce new checks which an employer must carry out as a means of ensuring you comply with Section 8 of the Asylum and Immigration Act 1996.

Under the Act it is a criminal offence to employ someone aged 16 or over who has no right to work in the United Kingdom or no right to do the work the employer is offering. If an employer is found guilty of the offence they may be subject to a penalty amounting to £5,000.

By carrying out the new checks it gives an employer a statutory defence against conviction for employing an illegal worker. Under the old rules it was sufficient to check a persons National Insurance number. However under the new rules the employer will be required for any potential employee to check and take a copy of certain original documents belonging to the potential employee. The employer will also need to take reasonable steps to satisfy themselves that the potential employee is the rightful holder of the documents.

The Home Office have identified various documents which may be used. The first list from which only one document is needed includes items such as: a passport showing that the holder is a British citizen, or has a right of abode in the United Kingdom; or a document showing that the holder is a national of a European Economic Area country. Alternatively the second list from which two documents would be required includes a document giving the persons permanent National Insurance number but this must be support by a document such as a full birth certificate. The lists are more extensive than this.
The new rules apply to all employers therefore anyone employing staff must ensure they have adequate systems in place to demonstrate that they do carry out checks on any potential employees.