The government’s proposed introduction of a mandatory digital ID system by 2029 is set to reshape the way employers verify a candidate’s right to work. While the scheme has been positioned as a tool to tackle illegal employment, Gi Group UK Managing Director Pete Taylor says businesses must look beyond the headlines and consider the practical implications for both employers and jobseekers..
As a leading recruiter within the manufacturing industry, Gi Group UK, which is part of the 10th largest global staffing firm in the world, Gi Group Holding, fills over 2,800 manufacturing roles per week and actively supports 100 manufacturing clients across the country. With deep insights into the hiring trends and talent bottlenecks, Gi Group believes the changes could bring opportunities as well as challenges for manufacturing businesses during the recruitment process.
Pete comments: “On one hand, a centralised digital ID could streamline processes and reduce the reliance on manual document checks, helping employers avoid the risk of inadvertently accepting fraudulent paperwork,” he said. “On the other hand, the transition period is where businesses will face the most disruption, and employers will need clear guidance and support.”
Within the manufacturing industry, many of Gi Group’s clients are seeking candidates with technical skills that are increasingly hard to find, including machine operation, precision engineering, and digital manufacturing technologies.
Currently, many businesses already use the Home Office online system to check the immigration status of non-UK nationals, while British and Irish passport holders can provide their documents directly. The shift to a fully digital format, however, will mean every worker must hold a digital ID in order to be employed legally in the UK. This could simplify compliance in the long term, but Pete says the reality for employers is not straightforward.
“Employers will need safeguards to ensure they are not discriminating against candidates who face delays in securing their digital ID or who are less digitally literate,” he said. “We cannot risk shutting people out of opportunities simply because they struggle with technology.”
For candidates, the implications are significant. Many people currently rely on physical documents such as passports, birth certificates or utility bills to prove their identity. A move to a smartphone-based ID raises concerns for those without access to online devices, or who are not confident using them. While the government has promised to consult on how the system will work for people without smartphones, Gi Group says employers must be prepared to support candidates through the change.
Pete added: “We recruit across a wide range of sectors, including logistics, manufacturing, and food and drink, where not every candidate is necessarily digitally literate. Employers will need to work with skilled recruiters who take an active role in helping candidates navigate the new requirements, otherwise we risk creating unnecessary barriers to employment.”
There are also questions around data protection. With sensitive personal information such as nationality and residency status stored digitally, employers will need robust systems in place to handle checks securely. Gi Group has urged the government to ensure employers are given the necessary training and infrastructure to protect candidate data.
From an efficiency perspective, digital ID could ultimately benefit employers by reducing paperwork and creating a consistent standard for checks. But the consultation process and subsequent rollout will determine how smooth this transition is for businesses. Pete emphasised the importance of a phased approach: “Employers should not be expected to adapt overnight. The government must work closely with industry to deliver a solution that is fair, practical and accessible.”
With a phased introduction running until 2029, businesses have time to prepare. However, Gi Group warns that employers should start considering the potential impact now. For recruiters and HR teams, this means planning for how digital ID could be integrated into existing systems, ensuring staff are trained, and thinking about how best to support candidates who may find the new system challenging.
Gi Group UK is headquartered in Chesterfield in the Midlands. Parented by Gi Group Holding, Gi Group UK employs close to 240 people and in 2025 is proud to serve more than 1000 clients across sectors from logistics and industrial to engineering and automotive.