The maximum civil penalty for employing an illegal worker will be raised from £20,000 to £45,000 per worker for first offences and £60,000 per worker for repeat offences. Employers should act now to ensure that their right-to-work checking processes are robust and compliant in order to reduce the risk of incurring penalties when these changes come into force in early 2024.
The Current Law
Under the Immigration, Asylum and Nationality Act 2006, illegal working civil penalties can be imposed on employers who unknowingly employ a person who does not have the required permission to perform the job in question.
There is also a separate criminal offence where an employer knows or has reasonable cause to believe that they are employing an illegal worker. The maximum sentence associated with this offence is five years imprisonment and/or an unlimited fine.
Employers are expected to carry out right-to-work checks for every prospective employee, regardless of nationality, to establish whether an individual has the required permission to work in the UK or if they are working in the UK illegally.
What Changes will be Coming into Force Next Year?
On 7 August 2023, the UK government announced that it would be increasing the maximum fines issued to employers found to be employing workers who do not have lawful immigration status. The overall maximum illegal working civil penalty will be increased from £20,000 to £60,000 per illegal worker. In addition, the penalty will be increased to £45,000 per illegal worker for first-time offences. This is a significant increase and will have serious financial consequences for businesses that are found to be liable.
It is also important to be aware that the government has stated that immigration enforcement activity has stepped up this year - up 50% compared to last year and is at its highest levels since 2019.
Furthermore, the Home Office intends to launch a consultation on options it is considering in relation to stronger action that could be taken against Points-Based Immigration System sponsors who have been found employing illegal workers.
What Should Employers Do to Reduce the Risks of Illegal Working?
It is more important than ever that businesses revisit their right-to-work check processes and consider other measures to mitigate the risk of illegal working. Things that your business should consider include;
- completing the right-to-work checks in line with the Home Office guidance before an individual starts their employment. This will provide an employer with a statutory excuse against liability for an illegal working civil penalty if an employee subsequently turns out not to have permission to work
- consider carrying out periodic internal/external audits of right-to-work check documentation and processes
- provide ongoing training to staff involved in completing right-to-work checks to make sure they fully understand their responsibilities
- take swift action to obtain appropriate legal advice if any potential illegal working is identified
If you have any questions about the right-to-work checks or would like support to ensure that you are conducting your right-to-work checks properly, please get in touch with our employment law team via email.
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