In our experience my partner missed out on a job with a national supermarket chain, simply because they just didn't 'get' the certificate of application and insisted on a passport with residency. He was lucky that an agency 'threw caution to the wind' and was so desperate for people that they photocopied the letter and kept it, but I doubt they ever used the checking service that they were supposed to use.
At the end of the day, a lot of employers find it too much of a hassle to fax documents and wait for a response from the UKBA, so they just don't bother, sad but true..
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