Civil Penalty Immigration: Guide for Employers

Section A: What is a Civil Penalty for Immigration?

Employers in the UK are legally required to prevent illegal working. The Home Office enforces this duty through the civil penalty regime under the Immigration, Asylum and Nationality Act 2006, which enables financial penalties against employers who employ individuals disqualified from working by reason of their immigration status. A civil penalty is not a criminal punishment but an administrative sanction that can carry severe financial and reputational consequences. Its purpose is to deter non-compliance and encourage consistent, lawful right to work practices across all sectors.

Since 13 February 2024, the civil penalty rates have risen sharply to reflect a tougher enforcement stance. The maximum fine now stands at £45,000 per illegal worker for a first breach and £60,000 per illegal worker for repeat breaches. These uplifts apply to all breaches taking place on or after that date. The increase coincides with a marked expansion in enforcement activity, with data sharing between the Home Office, HMRC, local authorities and other regulators now driving a more intelligence-led approach.

A civil penalty arises when an employer is found to have employed a person who did not have permission to work, or was working in breach of their visa conditions. The Home Office will assess whether the employer can demonstrate a statutory excuse, the legal defence available where right to work checks have been conducted correctly and on time in accordance with the Immigration (Restrictions on Employment) Order 2007 and the Home Office Codes of Practice. If a statutory excuse is proven, no penalty is issued even if the worker was later found ineligible. If checks were incomplete, late or missing, liability follows automatically and a Civil Penalty Notice is issued detailing the alleged breach and the fine calculation.

Civil penalties are distinct from criminal offences. An employer commits a criminal offence only if they know, or have reasonable cause to believe, that an individual does not have the right to work and employs them regardless. That offence is prosecuted under section 21 of the 2006 Act and carries a potential prison sentence. In contrast, civil liability does not depend on intent, it rests purely on whether the employer can show that the prescribed checks were done properly.

The regime covers all employers, regardless of size or sector. In practice, the vast majority of cases involve the civil route rather than prosecution. For most businesses, the immediate concern is the potential for high-value fines, public naming, and knock-on compliance consequences, particularly for sponsor licence holders, where an illegal working finding can trigger a licence suspension or revocation review. Even non-sponsors can face indirect consequences, such as difficulties with banking or public sector contracting where immigration compliance forms part of due diligence.

In essence, the civil penalty framework is designed to make right to work compliance a routine part of corporate governance. Employers who implement consistent checking systems, document each step and maintain secure records can avoid liability entirely. Those who neglect these safeguards risk significant cost, brand damage and regulatory scrutiny.

Section B: Grounds for Civil Penalties

The Home Office issues civil penalties where it finds evidence that an employer has allowed someone without the right to work to undertake employment in the UK. Liability does not depend on intent or knowledge; it arises where prescribed right to work checks were not carried out correctly, on time, or at all. Employers are assessed strictly against the legal requirements in place at the time the work occurred, not on what may have been intended or understood by managers or HR staff.

Enforcement activity is now largely intelligence led. The Home Office receives information from a range of sources, including data sharing with HMRC, referrals from other regulatory agencies, public tip offs, and follow up investigations after previous compliance visits. High risk sectors such as hospitality, construction, care, and agriculture attract particular scrutiny, but any organisation can be investigated if intelligence suggests potential breaches.
Investigations may begin with an Information Request or an unannounced compliance visit. Officers can inspect personnel files, payroll records, and right to work documentation, and interview managers and staff. Where evidence indicates a breach, the case is referred to the Civil Penalty Compliance Team to determine whether liability exists and what level of fine applies. The employer’s history, level of cooperation, and internal systems are all considered, but the deciding question remains whether a statutory excuse can be demonstrated.

Typical triggers for penalties include expired visas that were not rechecked, missing or undated right to work evidence, reliance on forged or altered documents, and the use of unverified agencies or subcontractors without audit controls. Even minor administrative oversights, such as a missing verification date or incomplete copy, can remove the statutory excuse. Employers operating multiple sites or delegating checks to line managers face particular risk where procedures are applied inconsistently.

The Home Office treats failure to maintain documented compliance as serious, especially where earlier warnings have been disregarded or where weaknesses are systemic. A single error can lead to a broader audit of the employer’s practices, multiplying exposure across the workforce. For sponsor licence holders, the same finding can also trigger a review of the organisation’s sponsor status.
In most cases, penalties stem from procedural lapses rather than deliberate non compliance, yet the consequences are substantial. Once potential breaches are identified, the Home Office will issue written notice outlining its findings and give the employer a short window to respond. At that stage, the ability to produce complete and dated right to work records is the only reliable defence. Where those records are missing or incomplete, a civil penalty is highly likely.

Section C: Home Office Civil Penalty Process

A civil penalty case usually starts with intelligence, a data match or a referral after an earlier visit. The Home Office may write first with an Information Request asking for right to work records, payroll and employment details for named individuals. The letter sets a short response window, typically ten working days. Unannounced visits also occur. Officers can review personnel files on site, interview managers and staff, and record their findings for referral to the Civil Penalty Compliance Team.

After initial enquiries, the employer is given a brief right to reply. This is the point to supply dated right to work checks, employment contracts, rotas and payroll evidence that show either a statutory excuse or that the individual was not employed. Clear, contemporaneous records usually decide outcomes at this stage. Silence or incomplete responses increase the risk of a penalty.

If the Home Office considers liability proven, it issues a Civil Penalty Notice. The notice sets out the workers identified, the legal basis for liability, the calculation per worker, any mitigation applied, and the options to pay or object. It also states deadlines, including the 28 day limit to lodge an objection. Where payment is made promptly without challenge, an early payment reduction may apply if the case meets the policy conditions.

Failure to engage leads to escalation. Unpaid penalties are recovered as civil debts through the courts, with interest and enforcement costs added. The Home Office also publishes details of penalised employers, which can affect banking, tenders and relationships with customers. Where the employer holds a sponsor licence, enforcement teams may refer the case for a compliance assessment that can result in suspension or revocation.

In practical terms, the investigation sequence is predictable. An initial request or visit is followed by a short window to provide evidence. A formal notice then confirms liability, the amount and next steps. Employers who maintain complete, dated checks and respond within timeframes are best placed to avoid or reduce a penalty.

Section D: How Much are Civil Penalties for Illegal Working?

The Home Office applies a structured framework to decide whether to issue a civil penalty and how much to fine an employer. The calculation is based on the number of ineligible workers identified, the employer’s compliance history and the level of cooperation shown during the investigation. Each case is assessed individually, but the method follows the guidance in the Home Office Code of Practice on Preventing Illegal Working.

For breaches taking place on or after 13 February 2024, the maximum fine is £45,000 per illegal worker for a first breach and £60,000 per worker for repeat breaches. These rates apply regardless of the size of the business and represent the most significant increase since the civil penalty regime was introduced. The higher tariffs are part of a policy shift aimed at deterring repeat non-compliance and reinforcing the need for consistent right to work practices across all sectors.

When deciding the penalty level, the Home Office weighs aggravating and mitigating factors. Mitigation may apply where an employer has a clean record, reports suspected illegal working voluntarily, or cooperates fully during enquiries. Aggravating factors include deliberate non-compliance, obstruction of officials, falsified records or a previous unpaid penalty. Where an employer demonstrates partial compliance, such as performing some but not all required checks, the Home Office may impose a reduced fine but still find liability.

Employers who accept liability and pay promptly, usually within 21 days, can qualify for a 30 per cent early payment reduction. This incentive is not available if there are previous unpaid penalties or evidence of serious or repeated breaches. In limited cases, payment by instalments may be considered on request, but this is discretionary and depends on financial disclosure.

A typical example shows how exposure can escalate quickly. An employer found to have three workers without valid permission could face £135,000 for a first breach or £180,000 for a repeat offence. Even with partial mitigation, the figures remain substantial. The calculation is per worker, not per notice, so each additional breach compounds the total liability.

The Home Office’s aim is to reward compliance and cooperation while penalising neglect and obstruction. Employers who can evidence strong prevention measures, keep accurate records and respond quickly when issues arise are more likely to benefit from mitigation or have penalties cancelled altogether.

Section E: Received a Civil Penalty – What Next?

Once a Civil Penalty Notice is issued, the clock starts ticking. Employers have only 28 days from the date of the notice to decide whether to pay, object, or prepare to appeal. Acting quickly is essential, as missing a deadline can remove the opportunity to challenge the fine and allow the Home Office to register the penalty as a civil debt.

An employer that accepts liability can pay the penalty in full or, where eligible, take advantage of the 30 per cent early payment reduction by settling within 21 days. Early payment is treated as acceptance of the penalty and closes the case. Some employers may request to pay by instalments if immediate payment would cause financial hardship, but this is discretionary and must be supported by clear evidence of need.

Employers who believe the penalty was wrongly issued, miscalculated, or unfairly assessed can submit a written objection within the 28-day window. The objection should explain why liability does not arise, or why the amount should be reduced, and must include supporting evidence such as right to work checks, employment contracts, payroll records, or witness statements. Grounds can include that the statutory excuse applies, that the individual was not an employee, or that the Home Office has misapplied its policy or procedures. The objection is reviewed by a separate internal team not involved in the initial decision, and outcomes may confirm, cancel, or reduce the penalty.

If the objection outcome is unsatisfactory, the employer has a further 28 days to appeal to the County Court in England and Wales or the Sheriff Court in Scotland. The appeal is determined on the civil standard of proof — the balance of probabilities — and focuses on whether the employer was liable, whether the amount was appropriate, and whether the decision-making process was lawful and fair. The court can cancel, vary, or confirm the penalty and may order costs if it finds the Home Office acted unreasonably.

Where a business decides not to challenge or fails to act in time, the Home Office can enforce recovery through the civil courts, adding interest and enforcement costs. The employer’s details may also appear on the published list of penalties, increasing reputational risk. For sponsors, an unchallenged penalty can lead to compliance action that disrupts recruitment and licence renewals.

In practice, the best approach is to review the notice immediately, collate all relevant documents, and seek advice if any doubt exists about liability or procedure. The objection and appeal routes are limited but valuable opportunities to correct Home Office errors and protect the organisation from unnecessary financial and regulatory exposure.

Section F: Preventing Civil Penalties & Compliant Right to Work Checks

Prevention comes down to completing the correct check at the right time and keeping clear evidence. There are three lawful routes. A manual check of original documents remains available to all. A digital check through an identity service provider applies only to British and Irish citizens presenting a valid passport or Irish passport card. The online Home Office check applies to workers who hold digital immigration status or a biometric immigration document that routes to an online profile.

Checks should be completed before employment starts. Where a person has time limited permission to work, a follow up check is required on or before the permission end date. Employers should satisfy themselves that the record relates to the person in front of them, that the photograph is a true likeness, and that the name and date of birth are consistent across documents and systems. Copies or downloads should be clear and dated, and stored for the duration of employment and at least two years after it ends.

For manual checks, inspect the original documents in the prescribed lists, copy the relevant pages in full, add the date the check was carried out and record who conducted it. Birth certificate routes for British and Irish citizens are still valid where no passport is held. For identity service provider checks, use a certified provider and retain the IDVT output with the required data points, including the image used and the date the check was completed. For online checks, ask the individual for a share code and their date of birth, access the Home Office profile, confirm the conditions and expiry, and save a dated copy of the result page. Do not rely on screenshots or printouts supplied by the worker.

From 2025 most visa holders hold digital status through an eVisa. Where an online record exists, employers should rely on the Home Office online service rather than a physical card. Biometric Residence Permits have been phased out as evidence of status and are not a substitute for the online profile. Where work is restricted, for example students with term time limits, keep evidence of the hours limit and any term dates obtained from the education provider to support scheduling decisions.

Risk increases where processes are inconsistent. Multi site operations, franchise networks and heavy use of agency labour create gaps if checks are delegated without oversight. Build controls that centralise storage, track permission end dates and alert managers ahead of follow up points. Run periodic audits that sample files against the Code of Practice and fix gaps promptly. Sponsors should align records with Appendix D standards so that checks, payroll and role details tell a consistent story if inspected.

A clear policy, trained hiring managers and reliable record keeping tools reduce exposure. The aim is a repeatable process that produces dated evidence every time, regardless of location or recruiter. Where that discipline is in place, employers can show a statutory excuse and avoid civil liability even if an individual is later found to be ineligible to work.

Section G: Summary

The civil penalty regime is now one of the most active enforcement areas within UK immigration control. With maximum fines of £45,000 per worker for first breaches and £60,000 for repeat offences, even a single administrative failure can carry serious financial and reputational impact. The Home Office’s shift to data-led enforcement and the integration of HMRC and local authority intelligence mean that compliance risks extend well beyond sectors traditionally viewed as high risk.

For employers, prevention remains the only reliable defence. The statutory excuse depends entirely on completing and retaining the correct right to work checks before employment begins and, where necessary, at follow up. As the UK moves fully to digital status records, reliance on physical documents is no longer enough. Employers need to embed the online check into standard onboarding and ensure that record keeping meets the requirements of the Immigration (Restrictions on Employment) Order 2007 and the current Codes of Practice.

Where a Civil Penalty Notice is issued, acting quickly is critical. The 28 day objection and appeal deadlines are short, and evidence has to be complete, dated and consistent. Many penalties can be reduced or cancelled where an employer can demonstrate procedural errors or a valid statutory excuse, but success depends on timing and documentation.
The most effective strategy is routine diligence: train staff, keep records organised, and audit regularly. Those simple steps give the legal protection needed to defend against penalties and maintain compliance confidence with the Home Office.

Section H: Need Assistance?

If your business has received a Civil Penalty Notice or an Information Request from the Home Office, timing is everything. The 28 day objection window leaves little margin for delay, and every day counts when gathering evidence and preparing your response. Even small procedural errors can turn a defensible case into a confirmed penalty, affecting cash flow, reputation and sponsor status.

Book a confidential telephone consultation with our employer immigration specialists to assess your position and understand your options. We will review your notice, identify any grounds for challenge, and help you prepare a robust objection or appeal within the deadline. Early action can reduce or cancel penalties, prevent publication on the Home Office list, and protect your sponsor licence from further scrutiny.
Contact us today to arrange a fixed fee call and get clarity on your next steps before time runs out.

Section I: FAQs

What is the maximum civil penalty for employing illegal workers?

The current maximum fine is £45,000 per illegal worker for a first breach and £60,000 per worker for repeat breaches. These levels apply to all breaches taking place on or after 13 February 2024 and reflect the government’s tougher enforcement approach.

Can a civil penalty lead to criminal prosecution?

Civil penalties are administrative fines. However, where the Home Office considers that an employer knew or had reasonable cause to believe a person did not have the right to work, the matter may be referred for criminal prosecution under section 21 of the Immigration, Asylum and Nationality Act 2006. A conviction can result in imprisonment and an unlimited fine.

How long do I have to object to a Civil Penalty Notice?

Employers have 28 days from the date of the Civil Penalty Notice to file a written objection. If the objection is unsuccessful, a further 28 days is allowed to appeal to the County Court or Sheriff Court. Missing these deadlines removes the right to challenge the penalty.

Is there a discount for early payment?

Employers who pay their penalty within 21 days and do not appeal may qualify for a 30 per cent early payment reduction. The discount is discretionary and may be withheld where the employer has an unpaid prior penalty or the breach is considered deliberate.

Can I pay the fine in instalments?

Possibly. The Home Office can agree to payment by instalments where there is clear evidence of financial hardship, but this is not guaranteed. Requests should be made promptly with supporting financial information.

What is a statutory excuse?

A statutory excuse is a legal defence that protects an employer from liability for a civil penalty if they can show that they carried out and retained evidence of compliant right to work checks before employment began and, if required, on follow up. The excuse applies only where checks meet the Home Office’s prescribed standards.

What happens if I ignore a Civil Penalty Notice?

If no action is taken within the deadlines, the penalty can be registered as a civil debt in court. The Home Office may add interest and enforcement costs, and the employer’s details can be published. For sponsors, an unpaid or uncontested penalty may also trigger compliance action affecting licence status.

Does a civil penalty affect my sponsor licence?

A penalty can lead to suspension or revocation of a sponsor licence. The Home Office treats a civil penalty as evidence of wider compliance failings. Sponsors are expected to apply right to work standards consistently across all staff, not just sponsored workers.

How should I check an employee’s right to work?

Use one of three approved methods: manual document check, digital identity check through a certified provider for British and Irish citizens, or the online Home Office service for digital immigration status holders. From 2025, most visas are verified online through an eVisa, so physical Biometric Residence Permits should not be relied on.

Should I get legal advice before objecting or appealing?

Objection and appeal processes involve evidential and procedural analysis. Legal advice can identify grounds to challenge liability, highlight calculation errors or procedural unfairness, and ensure all submissions are filed within the strict deadlines.

Can I be named publicly if I receive a penalty?

The Home Office regularly publishes lists of employers who have received civil penalties. Public disclosure can impact reputation, tender eligibility and banking relationships. Engaging early and resolving the issue before publication reduces this risk.

Section J: Glossary

Section K: Additional Resources & Links