What to Do When an Employee Loses Their Right to Work

Losing the right to work in the UK can happen for several reasons—but for employers, knowing what to do next is crucial. Continuing to employ someone without lawful status can result in fines of up to £60,000, criminal liability, and even sponsor licence revocation. This Borderless guide outlines your legal responsibilities, how to check immigration status, and the correct steps to follow if an employee loses their right to work.

Understanding Right to Work in the UK

The "right to work" refers to a person's legal permission to undertake employment in the UK.

People with an automatic right to work include:

• British and Irish citizens
• Those with Indefinite Leave to Remain
• Those with settled or pre-settled status under the EU Settlement Scheme
• Holders of valid work visas (e.g., Skilled Worker visas)

Temporary right to work usually applies to visa holders. These employees must:

• Comply with visa conditions (e.g. role, hours, employer)
• Extend or switch visas before expiry

Employers are required by law to check and monitor these rights—and act swiftly if anything changes.

What Causes an Employee to Lose the Right to Work?

An employee might lose their right to work if:

• Their visa or permission expires
• Their visa application is refused
• Their sponsor loses its licence to sponsor
• They change roles without Home Office permission
• There’s a TUPE transfer and the new employer has no licence

In these situations, the individual is no longer legally allowed to work. As an employer, you must take immediate, lawful steps.

Employer Responsibilities: Legal and Compliance Obligations

Under the Immigration, Asylum and Nationality Act 2006, UK employers must:

• Prevent illegal working
• Conduct and retain right to work checks
• Re-check visas with expiry dates
• End employment when legal work status ends (unless exempted or extended)

You cannot suspend a person without pay and consider yourself compliant—the person is still technically employed. Failure to act correctly can result in:

• Civil penalties (up to £60,000 per breach)
• Criminal prosecution (up to 5 years imprisonment)
• Loss of sponsor licence

Step-by-Step Guide: What to Do if Right to Work Is Lost

1. Verify the Reason

Determine why the employee lost their right to work:

• Check whether it’s due to visa expiry, refusal, or administrative error
• Ask the employee to share evidence of their immigration status (e.g., share code)
• Use the Home Office Employer Checking Service (ECS) for confirmation

If the employee has applied for a new visa before the expiry date, they may have a 28-day protection period or grace period, depending on the case.

2. Assess the Timeline

• If the employee has proof of a valid pending application, they may still work until a decision is made
• If they have no pending application or it was refused, you must take steps to terminate employment

3. Take Appropriate Action

If the employee can no longer prove the right to work:

• Conduct a formal meeting with the employee
• Keep records of the conversation and reasoning
• Provide a termination letter stating the legal reason
• Pay final wages and remove the individual from payroll

If the employee still has a pending visa application:

• Keep detailed documentation
• Request regular updates
• Consider placing them on paid leave while awaiting confirmation (case-specific)

Dismissing an Employee: Legal Considerations

Before dismissing an employee, ensure:

• They have no valid visa or pending application
• You have evidence (e.g., ECS check response)
• You’ve given them time to provide documents
• You document your decision-making process to protect against unfair dismissal claims

Best Practices:

• Issue a formal termination notice
• Store all right to work documentation securely
• Offer the right to appeal if appropriate
• Report the dismissal to the Home Office via your SMS

What If You’re the Sponsor and Lost Your Licence?

If you lose your sponsor licence:

• Sponsored employees have 60 days to:
  • Find a new sponsor
  • Switch to another eligible visa
  • Leave the UK

During this time:

• You must report the sponsorship termination
• You cannot legally continue employing the worker unless they switch visa or secure a new sponsor

Read our guide on sponsor licence revocation for detailed steps.

Staying Compliant with Borderless

Borderless helps employers avoid breaches with:

• Automated visa expiry and right to work alerts
• Real-time status checks
• Mock audits
• Centralised recordkeeping for sponsor compliance

Need help reviewing your employee records or preparing for a sponsor licence audit? Get in touch today.