Your guide to recruitment compliance in 2025 

A 2025 guide to recruitment compliance 

In this recruitment compliance guide, we’ll cover everything you need to be aware of this year to help you get your head around hiring compliance and get started on your own recruitment compliance checklist.

1. Recruitment data compliance 

Data protection laws seek to ensure the personal information that identifies an applicant is accurate, securely kept, and is not stored longer than it is required. 

Data compliance regulatory framework  

If your organisation operates within the UK, you must comply with UK GDPR and the Data Protection Act 2018 (which incorporates the provisions of the EU GDPR compliance). These pieces of legislation govern the processing of a data subject’s personal data by data controllers. 

When considering hiring compliance, the data subject providing personal data would be the job applicant, while the data controller would be the employer or hiring manager.

To guarantee compliance in recruitment and to comply with data regulations, employers must ensure applicants know what will happen to their data. To do that, you can include it in your job advert or by issuing a privacy notice. 

Privacy notice 

To demonstrate recruitment compliance, employers can disclose how they will handle an applicant’s data in a privacy notice.  

A staple for all recruitment compliance checklists, a privacy notice ensures applicants know you have access to their personal data, where your organisation will store their data, who will access it, how your organisation will use their data, and how long you will retain their data.

Data security and integrity 

Another essential consideration is where will you store the applicant’s data? To ensure recruitment compliance, you must use secure filing cabinets for physical documents and password-protected files for any digital data.

Data retention periods 

When looking at their recruitment compliance, many HR professionals ask how long they should hold an applicant’s data. To adhere to hiring compliance, employers must retain data for the set retention periods to comply with legal requirements.

When retaining applicants’ data, employers must retain their data for the period of time a claim could be made. For example, if an applicant made a discrimination claim, they would have 3 months to claim at a tribunal, so organisations should expect to retain data for 6 months. 

2. Recruitment compliance content must haves

Figuring out which hiring compliance policies you need to implement can be a challenge for any HR professional. To help make the process just that little bit easier, we have listed some of the key content every recruitment compliance checklist needs.

Company guidelines

An essential document for any new hire, your company guidelines outlines what is expected of your people, how they must conduct themselves within the organisation. Your company guidelines will cover your organisation’s core values, what behaviour is acceptable, your code of conduct and the consequences of breaching the rules. 

Annual leave policies 

To ensure your recruitment compliance is water tight, you need to provide new employees with your annual leave policies. These documents outline how much annual leave employees are entitled to, how to request annual leave, why annual leave might be denied and how employees can accrue more annual leave. It’s important to reference the government guidelines to ensure you’re providing adequate annual leave. 

Data protection and GDPR 

To comply with hiring compliance in the UK it’s essential to provide Data Protection and GDPR policies that align with The Data Protection Act 2018. The General Data Protection Regulation ensures that your people have access to all the related data you hold about them. 

Sick leave and sick pay

A sick pay policy provides your people with the details around their sick pay allowance, and when they are eligible to receive sick pay. In the UK, every organisation must provide Statutory Sick Pay to their new hires to adhere to recruiting compliance. If an organisation wants to provide more sick pay to their people, it must be outlined in a sick pay policy. 

Health and safety at work 

As you might expect, a health and safety policy is a crucial requirement for any UK business’ recruitment compliance. Health and safety policies may include an action plan in case of emergency,l risk assessments, fire safety for the workplace and any training resources new hires might require. 

Contract termination 

When hiring new people, it’s important to make them aware of the details around contract termination. A contract termination police can outline on what ground you can legally terminate an employee’s contract. 

3. Right to work checks 

As an employer, you have a responsibility to prevent illegal working within the UK and ensure that the people you are bringing on board are, in fact, eligible to work in this country.

To avoid severe consequences, employers must ensure they have the appropriate Right to work checks when hiring new staff. It’s important to make conducting right to work checks an essential part of your onboarding process, and part of your onboarding checklist.

Code of practice and guidance 

Did you know you could face imprisonment if you do not comply with Right to work checks? 

To ensure you remain compliant, you must carry out crucial background checks for any potential new starters and conduct follow-up checks for those with limited permission to live and work in the UK. 

It is crucial to have Right to work checks as part of your hiring compliance checklist and to ensure that records for these checks are recorded and stored correctly.

Right to work fines in 2025

Not only are Right to work checks crucial for keeping your business safe, but failing to conduct the right recruitment compliance checks could leave your organisation with a hefty fine.

Introduced in 2025, the latest Right to work check fines have now tripled for employers who allow illegal workers. 

How much is the Right to work check fine in 2025?

For the first offence, an employer will be fined £45,000 per illegal worker. For any repeat offences, fines have increased to £60,000 per illegal worker. 

There are plenty of ways to achieve this – from manual checks to online checks. To ensure you are abiding by recruitment compliance, you can request Right to work checks directly from a piece of hiring software, like an applicant tracking system (ATS), to automate your check process.

4. Essential background checks 

To ensure recruiting compliance you may be required to conduct further employment background checks in addition to essential Right to work checks. These additional checks are dependent on the nature of employment, the industry you operate in and the type of role you are hiring for. 

It is essential to carry out these checks during the hiring process to ensure you abide by hiring compliance. Similar to Right to work checks, pre-employment background checks can be conducted and processed within an ATS, helping to automate the process and reduce time to hire. 

Here are some common recruitment compliance checks you may be required to conduct when hiring:

DBS checks 

One of the most common types of background screening, DBS checks or criminal record checks, help employers determine whether their new hire is a risk to their business. Standard DBS checks involve a review of a candidate’s criminal history, and flag any convictions they might have. It’s then up to employers to make a hiring decision. 

Enhanced DBS Checks 

Enhanced DBS checks are a more thorough version of Basic and standard DBS checks, required for more high-risk roles. Providing employers with a more detailed look at their candidates criminal history these checks disclose spent and non-spent convictions and any other criminal convictions that might be relevant to their role.   

FCA checks 

FCA checks are required for roles that the FCA regulates. These essential hiring compliance checks review a candidate’s suitability for a role, including their education background, credit score, and criminal record. 

Directorship checks 

For senior roles, a directorship check is required for recruiting compliance. A directorship check reviews a candidate’s employment history as a director allowing employers to ensure their new hires have no history of misconduct in their previous places of employment. 

5. Discrimination laws in recruitment 

An incredibly important part of recruitment compliance is discrimination. With one in five people having faced discrimination, it is imperative that HR professionals take the right action to prevent candidates from facing discrimination at any stage of the hiring process.

The legal framework 

When looking at hiring compliance, the main piece of legislation you must focus on is the Equality Act. The Equality Act offers individuals protection against discrimination. It consists of 9 protected characteristics every employer must be aware of: Age, Disability, Gender Reassignment, Marriage or Civil Partnership, Pregnancy, Race, Religion, Sex, and Sexual Orientation. 

What are the types of discrimination in recruitment?

There are two types of discrimination employers must be aware of when considering recruitment compliance. The first type of discrimination you could see in recruitment is direct discrimination. 

Direct discrimination occurs when a candidate is put at a disadvantage or treated less favourably by an employer due to one of the 9 protected characteristics in the Equality Act. 

The second form of discrimination in recruitment is indirect discrimination. Indirect discrimination occurs when a working policy or rule is in effect, but that rule puts someone at a disadvantage because of a protected characteristic. 

What if you get it wrong?

If, as an employer, you discriminate against a candidate or produce a job advert that deters an applicant due to a discriminatory advert, you could be liable for a discrimination claim. A discriminated applicant could make a claim to an employer, a decision maker or even a recruitment agency. 

Suppose an organisation fails to comply with discrimination legislation. In that case, the consequences of a discrimination claim can leave an organisation in a difficult place, with possible unlimited compensation, legal costs, and a damaged reputation if found guilty. 

How to avoid discrimination in recruitment

To practise recruitment compliance and avoid any possible discrimination when hiring a candidate, you need to view your entire recruitment process, starting with your job adverts. 

When writing job adverts, ensure that none of your adverts is discriminatory, consider where you are going to advertise your role and avoid any language in your advert that could deter an eligible candidate from applying. 

6. Creating compliant contracts 

Once you have found a candidate that ticks all the boxes, you will first want to send a job offer. But, as an essential element of recruiting compliance, employers must be aware of any potential risks.

When presenting a new employee with a job offer and an employment contract you must comply with the Employment Rights Act. To do this, employers are legally required to include certain information, including the name of the employer, agreed salary, payment dates and holiday notice.

Introducing…

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Hiring compliance in 2025

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