UK Government announce increase in fines for illegal working

23rd August, 2023 by Bilal Ehsan

Employing an illegal worker has always carried significant consequences, but the financial burden of doing so will soon triple in the biggest shake up of civil penalties since 2014. Employers are encouraged to revisit their right to work check processes and consider other measures to mitigate against the risk of illegal working.

New Penalties Effective from 2024

From early 2024, the penalties for employers who hire individuals without appropriate immigration permission will undergo a substantial adjustment:

For a first breach, the maximum penalty per illegal worker will increase from £15,000 to £45,000; and
For repeat breaches, the maximum penalty per illegal worker will rise from £20,000 to £60,000.

Consequences beyond Financial Impact

Whilst the financial repercussions of employing illegal workers is significant, both employers and employees should also be mindful of some of the broader impacts:

For Employers:

Reputation damage due to non-compliance
Increased legal expenses stemming from disputes and fines
Risk of missing out on business opportunities
Disruption to the workplace, affecting continuity and productivity
Potential license revocation impacting hiring capabilities
Negative influence on employee morale.

For Employees:

Job loss leading to financial instability
Risk of removal and separation from family members
Difficulties in securing future employment
Loss of owed wages and benefits
Uncertainty regarding immigration status.

Employer Considerations

Businesses can take several proactive measures to prevent and mitigate the risk of illegal working, ensuring not only compliance with immigration regulations but also safeguarding the company's reputation and maintaining productivity.

Thorough Right-to-Work Checks: Implement a rigorous process of verifying the immigration status of all employees before and during their employment.
Regular Employee Audits: Conduct regular audits of employee records to identify any inconsistencies or expired documents.
Staff Training: Educate HR personnel, managers, and supervisors about immigration laws and proper right-to-work verification procedures.
Clear Policies and Procedures: Develop and communicate clear policies and procedures for hiring and verifying the immigration status of employees.
Monitoring Subcontractors and Suppliers: Extend due diligence to subcontractors and suppliers to ensure that they also follow immigration regulations when employing workers for your projects.
Regular Communication with Employees: Encourage employees to report any concerns related to immigration compliance anonymously. Establishing an open line of communication can help identify issues early.
Immigration Law Expertise: Consider seeking legal advice or consulting immigration law experts to stay informed about evolving regulations and ensure your practices align with legal requirements.
Document Management: Maintain thorough and organised records of employees' right-to-work checks, contract agreements, and relevant correspondence.
Responsive Action Plans: Develop a clear plan of action to handle potential breaches, including immediate suspension of non-compliant practices and cooperation with the Home Office if necessary.
Regular Updates: Keep abreast of any changes to immigration laws and regulations through official government sources or legal experts.

For further insight into how your business can prevent and mitigate the risk of illegal working, please get in touch with our immigration team here.

The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.

UK Government announce increase in fines for illegal working

New Penalties Effective from 2024

Consequences beyond Financial Impact

Employer Considerations

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