Section A: Overview of Civil Penalty Notices
Employers are liable for a civil financial sanction if they are found to have employed someone who is disqualified from working by their immigration status and the employer cannot show a statutory excuse. The scheme sits under the Immigration, Asylum and Nationality Act 2006 and is administered through the Home Office’s civil penalty framework and the statutory Code of Practice.
The current Code of Practice applies where the breach occurred on or after 13 February 2024, and works alongside the employer right to work guidance updated on 26 June 2025, which applies to checks carried out on or after 12 February 2025.
The statutory excuse is the employer’s defence against civil liability. Officials should assess this first. If a prescribed right to work check was carried out correctly before employment started, liability should not arise.
1. What is a Civil Penalty Notice?
A Civil Penalty Notice is the formal decision that an employer is liable for a monetary penalty for illegal working. It follows an assessment that a worker did not have permission to do the job in question and that the employer failed to establish a statutory excuse through a prescribed right to work check completed before employment began.
The notice sets out the amount, the calculation used, the workers identified, the due date for payment, and how to object or appeal. The starting point is £45,000 per illegal worker for a first breach and £60,000 per worker for a repeat breach within the previous three years, before any reductions are applied.
Section 15 of the Immigration, Asylum and Nationality Act 2006 creates civil liability where an employer employs a person who is disqualified from working by their immigration status. The Code of Practice issued under section 19 sets out how liability is determined and how amounts are calculated, including the increase to the current maximum levels.
Section 21 creates the separate criminal offence of knowingly employing an illegal worker or having reasonable cause to believe the person is working unlawfully, which carries an unlimited fine and up to five years’ imprisonment in serious cases.
2. How breaches are identified
Cases are usually picked up through compliance visits, intelligence or data sharing. Where a potential breach is found, the employer is served with a Referral Notice and the case moves to officials for consideration. An Information Request then gives the employer a short window to send evidence.
A complete response within the deadline stated in the Information Request is treated as active cooperation and can affect the calculation later. Decisions are issued with a Civil Penalty Notice and a statement of case.
Depending on the facts, officials can cancel liability, issue a Warning Notice for a first breach where effective practices are shown, or impose a monetary penalty. The notice also explains payment options, the fast payment discount rules for a first penalty, objection grounds and the County Court (or Sheriff Court in Scotland) appeal route.
DavidsonMorris Strategic Insight
The key point for employers is that the Home Office does not need to prove any intent or knowledge to issue a fine. Liability arises if a worker was disqualified from working and the employer cannot show a compliant right to work check. There are no allowances for genuine mistakes or unintended oversights.
It is also important that the statutory excuse is binary. Either the correct process and dated evidence exist or they do not. This is where record-keeping pays dividends. If you can produce compliant, dated checks linked to the hire, you can rely on the statutory excuse and challenge the allegations.
Section B: Civil Penalty Process
The process follows a set sequence. Officials first decide whether a worker was disqualified from working and whether the employer held a statutory excuse at the point of hire or at any required follow-up. If liability is in scope, the case moves through staged notices and deadlines. Accuracy and timing decide outcomes, so treat each step as an evidence exercise rather than a narrative.
1. Referral Notice
A case starts with a Referral Notice that records the date the breach was identified. That date is relevant to case administration, while the date the breach occurred determines which Code of Practice applies. An Information Request usually follows, giving a short window to submit records.
A complete response within the deadline stated in the Information Request is treated as active cooperation. Employers should gather the right to work file for each named worker, the online profile page where digital status was checked, and any internal notes evidencing who carried out the check and when. Officials then carry out an internal review.
Outcomes at this stage include cancellation of liability, a Warning Notice for a first breach where effective practices are shown, or the issue of a Civil Penalty Notice setting out the amount, due date, calculation, and the routes to object or appeal.
2. Level of fine
For breaches identified on or after 13 February 2024 the starting point is £45,000 per worker for a first breach and £60,000 per worker for a repeat breach within the previous three years. The decision maker works through a three-stage framework. Stage one assesses liability and whether a statutory excuse exists. Stage two determines whether the breach is a first or repeat breach using the three-year lookback period. Stage three applies the calculation and determines the outcome.
Mitigations apply in fixed amounts rather than percentages. A £5,000 per worker reduction is available for self-reporting a suspected breach with a Unique Reference Number, and a further £5,000 per worker reduction applies for active cooperation. For a first breach only, where records show effective right to work systems, a Warning Notice can replace a monetary penalty.
Officials record each step of the calculation in the notice. Employers should check the arithmetic, confirm the lookback period, and ensure that any applicable mitigation has been credited. The Code of Practice that applies is fixed by the date the breach occurred, and the Referral Notice records when the breach was identified, so both dates should be checked against internal records.
| Scenario | Starting point per worker | Lookback period | Mitigations applied | Outcome |
|---|---|---|---|---|
| First breach – no mitigation | £45,000 | No previous breach within 3 years | None | Full penalty payable |
| First breach – self-reported | £45,000 | No previous breach within 3 years | £5,000 per worker reduction for self-reporting with URN | £40,000 per worker |
| First breach – active cooperation | £45,000 | No previous breach within 3 years | £5,000 per worker reduction for active cooperation | £40,000 per worker |
| First breach – self-reported and cooperated | £45,000 | No previous breach within 3 years | £10,000 total reduction per worker (£5,000 plus £5,000) | £35,000 per worker |
| First breach – effective right to work systems | £45,000 | No previous breach within 3 years | Warning Notice issued instead of penalty | No financial penalty |
| Repeat breach – no mitigation | £60,000 | Previous breach within 3 years | None | Full penalty payable |
| Repeat breach – self-reported or cooperated | £60,000 | Previous breach within 3 years | £5,000 per worker reduction for each applicable mitigation | £55,000 or £50,000 per worker |
| Fast payment (first breach only) | Varies depending on reductions | Not applicable | 30% discount if paid in full within 21 days | Applies to final payable amount |
3. Paying the fine
A first penalty can qualify for a fast payment reduction of 30 per cent if paid in full within 21 days. This is separate from the £5,000 mitigations and does not apply to repeat breaches. Some employers choose instalments for cash flow reasons.
Payment plans are usually available for up to 24 months via the Home Office shared services team. Instalments do not attract any fast payment reduction. Keep proof of payment and reconcile it to the internal case log.
4. Objecting to the fine
An objection is a short, structured review request. File it in writing within 28 days of the due date specified in the Civil Penalty Notice. Keep to the recognised grounds: not liable, statutory excuse, or penalty too high because the calculation is wrong or mitigations were not applied.
Evidence carries the weight, so attach the right to work copies, the online profile pages, and any documents that show who did the check and on what date. If the penalty is maintained or varied, the Objection Outcome will start a fresh 21-day clock for any fast payment on a first penalty.
5. Appealing the decision
If the objection outcome is not accepted, an appeal lies to the County Court (or Sheriff Court in Scotland) within 28 days. The court considers liability, statutory excuse, and the reasonableness of the amount. Parallel to this, unpaid penalties progress to civil recovery, court registration, and enforcement.
Publication follows once objection and appeal routes are exhausted and there is no payment or plan in place, and also for later penalties after routes are exhausted, even where payment is made. Those public lists can have immediate commercial effects, so treat timelines as a priority.
DavidsonMorris Strategic Insight
The Home Office follows strict procedural rules when investigating and issuing civil penalty notices. This does help by making the next steps predictable but it also means your options are tied to the process, and that means tight timeframes, limited grounds to object or appeal as well as a high evidential burden when you respond.
The best advice is to take early advice as soon as a Referral Notice lands, get professional guidance to help you strategise and take each stage with optimum engagement and impact.
Section C: If you’ve received a Civil Penalty Notice
Once a Civil Penalty Notice arrives, deadlines start running immediately. Every detail in the document matters. The notice states the names of the workers, the breach identification date, the due date for payment, and the calculation used. Those dates govern which Code of Practice applies, how much is owed, and when any objection or payment has to be made. Treat the notice as both a legal demand and a compliance trigger.
Start by reviewing it line by line. Check whether the listed workers were your employees, whether the right to work evidence is on file, and whether the checks were done correctly and on time. Confirm the date of employment against the issue of the notice and any recheck dates if permission was time-limited. A missing or misfiled document can often be found or reconstructed if you act quickly. Build a short internal timeline and keep copies of all correspondence in one file.
1. Respond in time
There are three basic options: pay, object, or appeal. If you accept the decision and the penalty is a first breach, paying in full within 21 days qualifies for the fast payment reduction of 30 per cent. For larger penalties or cash flow constraints, you can request an instalment plan of up to 24 months through the Home Office shared service team, although this does not attract any discount.
If you believe the Home Office is wrong, because a statutory excuse applies, the worker was misidentified, or the calculation is flawed, prepare an objection instead. Objections must be made in writing within 28 days of the due date specified in the Civil Penalty Notice. Use the official Civil Penalty Objection Form and attach supporting evidence. If the Home Office upholds the objection in part, it will issue a varied notice. If it rejects it, you then have 28 days to appeal to the County Court (or Sheriff Court in Scotland).
2. Mitigating factors
Before deciding whether to object, review whether mitigation has already been applied. The Home Office allows £5,000 per worker for self-reporting a suspected breach with a Unique Reference Number, and £5,000 per worker for active cooperation during the investigation, such as providing complete records within the deadline stated in the Information Request. For a first breach, if the employer can also demonstrate effective right to work systems, a Warning Notice may be issued instead of a monetary penalty. If any of these factors were missed, highlight them in the objection.
3. Protect your position while responding
Notify your insurer if your policy covers regulatory penalties or investigation costs. Record all communication with the Home Office and keep it factual. Avoid contacting the workers named in the notice directly unless HR and legal have reviewed the risks. Sponsors should alert their key personnel and review the sponsor licence for any related compliance vulnerabilities. Run a rapid audit of all current employee right to work files, not just those named in the notice, to show active remediation. If any status is uncertain, use the Employer Checking Service and retain the Positive Verification Notice with the validity dates.
4. Gather evidence
Build a single evidence pack. Include copies of right to work documents or online profile pages showing the date and result of the check, signed and dated by the checker. Include internal records identifying who carried out the check and when. Present it chronologically and label each item.
In the covering letter, deal with the Home Office grounds directly: whether you are not liable, have a statutory excuse or believe the calculation is wrong. Keep the language concise and professional.
If you are making payment, retain proof of transfer and confirmation from the Home Office account system.
| Category | Example documents | Significance |
|---|---|---|
| Right to work evidence | Copies of manual checks (clear, dated, signed); Home Office online check profile pages (share-code results with date and time); IDSP reports for British or Irish passport holders; any Positive Verification Notices from the Employer Checking Service with validity dates. | Proves a statutory excuse existed at the start date and, where applicable, at follow-up. |
| Employment records | Offer letter, contract, job description, start date confirmation, rota or timesheets, payroll records, and work location assignments. | Confirms who was employed, when, where and in what role. |
| Recruitment file | Application or CV, interview notes, agency introductions, onboarding checklist, screenshots of applicant tracking system entries. | Shows the hiring pathway and who performed checks. |
| Mitigation evidence | Self-report Unique Reference Number and submission; Information Request response bundle with timestamp; cooperation log; remediation steps taken following the visit. | Supports £5,000 self-report and £5,000 active cooperation reductions and evidences effective practices. |
| Policies and training | Right to work policy; training materials and attendance logs; visa-expiry tracking procedure; audit schedules and findings. | Demonstrates effective systems that can justify a Warning Notice on a first breach. |
| Sponsor licence records (if applicable) | Sponsor Management System screenshots or exports, Certificates of Sponsorship, Appendix D files, contact details and working location updates, compliance visit outputs. | Shows aligned HR and sponsorship controls and reduces licence enforcement risk. |
| Agency or third-party labour | Supply contracts with right to work clauses and audit rights; supplier right to work evidence samples; site access logs; statements confirming who is the employer. | Addresses end-user liability and evidences oversight of supplied workers. |
| Home Office correspondence | Referral Notice, Information Request, Civil Penalty Notice, statement of case, emails or letters, courier receipts and call notes. | Sets the breach identification date, deadlines and factual basis for challenge. |
| Calculation check | Internal worksheet testing first or repeat breach status, lookback period, mitigation credits and fast-payment eligibility, plus copies of any prior penalties or warnings. | Verifies the amount and supports objections that the penalty is too high. |
| Payment and finance | Proof of payment or instalment plan agreement, bank confirmations, ledger entries and insurance notifications. | Protects fast-payment reduction and evidences compliance with payment terms. |
| Governance and remediation | Board or compliance committee minutes, corrective action plans, post-incident training logs and updated policies with version control. | Shows prompt remediation and improved controls ahead of follow-up visits. |
| Data and privacy | GDPR lawful-basis note for processing and copying documents, plus redaction protocol for submissions. | Ensures disclosure is compliant while providing sufficient evidence. |
5. Plan for next steps
If the Home Office maintains the penalty, note the new deadlines in the Objection Outcome. If you appeal, instruct legal representation early, as the court process involves formal pleadings and evidence exchange. Even while appealing, keep compliance activity running. Expect a follow-up compliance visit and treat it as an opportunity to demonstrate improvement.
Update training, tighten document retention and review agency labour supply arrangements. Record these actions, as they can influence any future Home Office assessment.
A Civil Penalty Notice is not the end of the process but the start of a short window to limit impact. Fast, accurate assessment and evidence-based decisions can reduce exposure and show regulators that systems are being corrected.
Section D: Consequences of Immigration Non-Compliance
The impact of immigration breaches extends far beyond the fine itself. Civil penalties, criminal liability, licence downgrades and reputational damage can each threaten business continuity. The Home Office now takes a layered approach to enforcement, linking civil penalties, sponsor compliance action and criminal prosecution where evidence shows deliberate or repeat breaches. Employers who treat right to work checks as a box-ticking exercise risk a cascade of operational and regulatory consequences.
1. Financial and operational impact
The immediate exposure is financial. The starting point for a first breach is £45,000 per illegal worker and £60,000 for a repeat breach within three years. Where payment is late or unpaid, the penalty becomes recoverable as civil debt through the County Court. Judgments can affect credit, financing and eligibility for public tenders. The Home Office publishes the names of employers with unpaid or repeat penalties once objection and appeal routes are exhausted, which can damage commercial reputation overnight.
The operational disruption can be just as serious. Senior managers are drawn into audits, legal reviews and record reconstruction while hiring freezes or licence restrictions halt recruitment. The costs of retraining HR teams and rebuilding compliance systems can easily exceed the penalty itself. Where the business relies on sponsored workers, the risks multiply because licence action can immediately affect the right to employ overseas staff.
2. Sponsor licence enforcement
For sponsors, any finding of illegal working or receipt of a civil penalty can trigger Home Office compliance action. Sponsor guidance states that where a sponsor is issued with a civil penalty, the Home Office will normally revoke the sponsor licence, subject to limited exceptions. In other cases, the licence may be downgraded to a B-rating under an action plan, suspended or revoked entirely.
Where a licence is downgraded, the business cannot assign new Certificates of Sponsorship until the action plan is completed and approved. Suspension or revocation prevents the organisation from sponsoring any workers. Existing sponsored staff may have their permission curtailed and be required to find a new sponsor or leave the UK, creating sudden operational gaps and project disruption.
3. Criminal liability and director exposure
Where an employer knows, or has reasonable cause to believe, that a worker does not have permission to work, liability moves into the criminal regime under section 21 of the Immigration, Asylum and Nationality Act 2006. Conviction can lead to an unlimited fine, imprisonment of up to five years and director disqualification.
The Home Office may also share information with other regulators such as the Insolvency Service or professional bodies. For individuals, this can result in loss of personal reputation and restrictions on acting as a company director or senior manager of a licensed sponsor. The threshold of reasonable cause to believe is lower than many assume and can include ignoring expired documents or failing to follow up on visa expiry alerts.
4. Reputational and workforce consequences
Civil penalties and licence actions are public and can carry lasting reputational effects. Media coverage, government press releases and published penalty lists may remain visible in search results for years. Clients and supply-chain partners may impose additional audit or warranty requirements before renewing contracts. Recruitment can become more difficult, particularly in regulated sectors or public-sector supply chains.
Where a licence is lost or suspended, sponsored employees may be forced to leave roles, leading to disrupted teams and service continuity issues. Projects can stall while replacement staff are sourced or visa transfers arranged. The administrative workload involved in managing these outcomes often occupies senior management for extended periods.
5. Wider compliance obligations
A civil penalty record can prompt the Home Office to share intelligence with other government agencies. This may lead to unannounced visits or audits by bodies such as HMRC, the Gangmasters and Labour Abuse Authority or sector-specific regulators where relevant. It also increases the likelihood of follow-up inspections under the illegal working regime.
Employers that demonstrate immediate corrective action following a breach stand a better chance of retaining their licence and avoiding repeat penalties. Recording remediation steps, strengthening internal oversight and commissioning independent audits can provide persuasive evidence in future Home Office reviews.
DavidsonMorris Strategic Insight
The fine is often only part of the problem. A civil penalty notice can quickly escalate into sponsor licence action, reputational damage and operational disruption. Directors may also face personal scrutiny and future restrictions if enforcement escalates into criminal or regulatory action.
The Home Office increasingly cross-references civil penalty data with other regulators, meaning one immigration breach can trigger multiple audits. Swift internal review and a documented improvement plan are critical to limiting that wider exposure.
Section E: Avoiding Civil Penalty Notices
Avoiding civil penalties is about designing systems that remove discretion and error from the right to work process. Prevention is cheaper than cure, and the Home Office expects employers to demonstrate not just that checks are carried out, but that they are embedded into day-to-day recruitment and HR controls. The statutory excuse exists to protect employers who can show that prescribed checks were completed correctly and on time. The strongest protection comes from making those checks routine and traceable.
This operates against a backdrop of increasing Home Office enforcement activity, which reinforces the case for proactive compliance.
| Quarter | Period covered | Number of civil penalties issued | Total value (£ million) |
|---|---|---|---|
| Q4 2024 | October – December 2024 | 489 | £29.2 million |
| Q1 2025 | January – March 2025 | 748 | £41.6 million |
| Q2 2025 | April – June 2025 | 548 | £28.3 million |
1. Conducting compliant right to work checks
Every employer in the UK is legally required to confirm that each employee has the right to work before employment begins. There are three recognised methods under the Home Office employer guidance updated on 26 June 2025, which applies to checks carried out on or after 12 February 2025.
- Manual checks – inspecting and copying original documents such as a valid British or Irish passport or other acceptable immigration document in the presence of the individual, either physically or over a live video link where permitted. The employer must still hold the original document and make the copy themselves.
- Online checks – using the Home Office online right to work service for individuals who hold a biometric residence permit, biometric residence card, frontier worker permit or digital immigration status (eVisa). Physical cards are no longer acceptable proof of right to work.
- Digital checks – using a certified Identity Service Provider that meets the Good Practice Guide 45 standard for identity assurance. This method applies only to British and Irish citizens with valid passports or Irish passport cards. The employer remains legally responsible for the outcome even when using an IDSP.
| Method | Who it applies to | Record-keeping |
|---|---|---|
| Manual check | British or Irish citizens using an original passport, plus a limited set of other originals listed in the guidance. | Clear copy of the original document, signed or annotated with the check date and checker’s name, and a hiring record linking the check to the role. |
| Online check (share code) | Non-British or Irish workers with eVisa, BRP, BRC, FWP or other digital status. Physical cards are not acceptable proof. | Downloaded or saved profile page showing the individual, permission to work and any restrictions, plus the check date and checker identity recorded internally. |
| Digital check via IDSP | British and Irish citizens with valid passports or Irish passport cards only. | IDSP output confirming identity verification to GPG 45 standards, plus a record of who reviewed it and when. |
| Employer Checking Service (ECS) | Where the individual cannot show documents or an online record, for example where an in-time application or appeal is pending. | Positive Verification Notice with validity dates, plus an internal note of the request date and reference. |
| Agency or third-party supplied labour | Any supplied worker where the organisation is the end-user. Liability remains with the employer for right to work compliance. | Contract clauses requiring compliant checks, audit rights, sample evidence from the supplier and internal spot-check records. |
For online and IDSP checks, employers should save and securely store the profile page or confirmation output showing the date the check was carried out and the permission outcome. For manual checks, a clear, legible copy of the document should be made, signed and dated, and retained for the period of employment and for two years after employment ends.
2. Maintaining the statutory excuse
A statutory excuse only exists if the prescribed check is carried out correctly before the person starts work, and repeated where their permission is time-limited. Employers need a system that flags visa expiry well in advance and prompts re-checks before the due date. Where an application or appeal is pending, the Employer Checking Service should be used and the Positive Verification Notice retained as evidence of temporary protection.
Incomplete, outdated or incorrectly recorded checks can void the statutory excuse. Each record should clearly show the date of the check, the identity of the checker and the document or digital result verified. Digital record-keeping is acceptable provided copies are clear, accessible and securely backed up.
3. Embedding compliance into HR practice
Compliance is sustained through structure rather than intent. Employers should:
- Train all hiring and HR staff on current right to work guidance and acceptable documents.
- Run periodic internal audits, sampling both new starters and long-term staff.
- Maintain a central tracker for visa expiry and re-check dates, accessible to HR and line managers.
- Keep a written policy explaining who carries out checks, how they are recorded and escalation routes for anomalies.
- Record and close out compliance incidents, noting remedial action and any Home Office communication.
Automation can support these processes but does not replace accountability. Where labour is supplied by agencies or contractors, contracts should require compliant checks and audit rights, as liability remains with the end-employer.
4. Aligning sponsor licence and right to work systems
For sponsor licence holders, right to work compliance should align with sponsor management duties. Information recorded on the Sponsor Management System should match HR files and visa-tracking systems. Assigning and monitoring Certificates of Sponsorship, keeping contact details up to date and recording work-location changes all feed into the same compliance picture.
Where sponsor licence and right to work processes operate on different platforms, cross-checks should ensure updates in one system trigger reviews in the other. Alignment reassures Home Office officers that controls are joined up.
5. Continuous monitoring and improvement
Compliance frameworks need to evolve with policy changes. The rollout of eVisas and the withdrawal of physical documents mean the Home Office increasingly relies on digital checks. Employers should review systems regularly, update training when new guidance is issued and document each change. Keeping a compliance log that records updates, audit findings and remedial steps creates an evidential trail for any future investigation.
Right to work compliance is not a one-off event. When processes are routine and traceable, the risk of civil penalties reduces and the organisation can demonstrate robust workforce controls.
DavidsonMorris Strategic Insight
The most pragmatic approach to compliance is consistency. Policies and systems only protect an organisation if they are applied consistently by everyone involved in recruitment, onboarding and personnel management across all sites and functions.
One minor slip can undermine an otherwise compliant set-up. Training, auditing and record-keeping require ongoing oversight if compliance is to be maintained.
Section F: Summary
The civil penalty regime places responsibility for preventing illegal working squarely on employers. It is a compliance framework built around proof, proof that right to work checks were carried out, proof that records were kept, and proof that controls are ongoing. Financial penalties are only one risk. Licence loss, criminal prosecution and reputational harm can follow if breaches are repeated or systemic.
Employers can manage these risks through structure and discipline. Integrating right to work checks into onboarding, training HR and managers regularly and aligning record systems so evidence can be produced at short notice all reduce exposure. When a Civil Penalty Notice is received, employers should act quickly, gather evidence and decide whether to pay or challenge within the time limits.
Maintaining compliance is not just about avoiding fines. It protects the organisation’s ability to trade, hire and plan for the future. A transparent and well-documented approach to right to work checks demonstrates to regulators, clients and employees that immigration compliance is treated as a core governance issue.
Section G: Need Assistance?
Deadlines are tight and the first decision can set the tone for the entire process. Taking advice early allows the notice, evidence and timelines to be reviewed together so informed decisions can be made at the outset.
DavidsonMorris has extensive experience supporting employers through the civil penalty process. This includes testing liability, assessing whether a statutory excuse applies, reviewing penalty calculations and advising on whether fast payment or an objection is the appropriate route.
Book a fixed-fee telephone consultation to discuss your circumstances and next steps.
Section H: FAQs
What is the maximum civil penalty for employing an illegal worker?
The Home Office can impose up to £45,000 per illegal worker for a first breach and £60,000 for a repeat breach within three years. These levels apply to breaches identified on or after 13 February 2024. The exact amount depends on whether the employer self-reported, cooperated or demonstrated effective right to work practices that could justify a warning instead of a penalty.
How do I challenge or appeal a Civil Penalty Notice?
You can object in writing within 28 days of the due date specified in the Civil Penalty Notice. Use the official Civil Penalty Objection Form and include evidence such as right to work checks, online profile pages or Employer Checking Service results. If the objection is rejected or only partly accepted, you can appeal to the County Court (or Sheriff Court in Scotland) within 28 days. If successful, the court can cancel or reduce the penalty.
Can I reduce my penalty if I cooperate with the Home Office?
Employers that actively cooperate, by responding to information requests within the deadline stated in the Information Request, submitting complete records and correcting errors, may qualify for a £5,000 reduction per illegal worker. A further £5,000 reduction applies for self-reporting the suspected breach with a Home Office reference number. A first-time offender who also shows effective right to work systems can receive a Warning Notice instead of a monetary penalty.
Does paying quickly make a difference?
A first-time penalty qualifies for a 30% fast payment reduction if paid in full within 21 days of the notice. Instalments can be agreed over up to 24 months, but they do not attract any discount. Written confirmation of all payments should be retained as part of the audit trail.
What happens if I ignore the notice or miss a deadline?
If you do not pay, object or appeal within the required time limits, the penalty becomes enforceable as civil debt. The Home Office can register the debt with the County Court, take enforcement action and publish your organisation’s details on its penalty list. Once published, removal is only possible after full payment and the expiry of appeal rights.
Does a civil penalty notice go on your record in the UK?
A civil penalty notice is not a criminal conviction. However, if a penalty is unpaid and enforced as a civil debt, it can result in a County Court Judgment, which may affect credit and commercial standing. Employers may also be named on the Home Office’s published list of illegal working penalties once objection and appeal routes are exhausted, which can have reputational and procurement consequences.
How long should I keep right to work records?
Records should be kept for the entire period of employment and for two years after it ends. For online checks, retain the profile page showing the verification result and date. For manual or IDSP checks, keep clear copies of the verified documents and record the check date. Records can be stored electronically provided they are legible and retrievable.
What if a worker’s visa is expiring soon?
You should recheck before the expiry date. If the worker has applied to extend or vary their permission, use the Employer Checking Service to obtain a Positive Verification Notice confirming a temporary right to work for six months. Schedule a follow-up reminder before that notice expires and keep a copy on file.
How does a civil penalty affect my sponsor licence?
A civil penalty can trigger immediate compliance action. The sponsor licence may be downgraded, suspended or revoked. During suspension, you cannot assign new Certificates of Sponsorship. A revoked licence ends sponsorship of all workers and requires them to find a new sponsor or leave the UK. Even a downgraded licence can restrict recruitment and delay renewals.
Can the Home Office visit again after I’ve paid?
Payment of a penalty does not end scrutiny. Follow-up visits are common to assess whether compliance systems have improved. The Home Office may request further evidence or conduct unannounced inspections, particularly where sponsored workers are employed.
Is criminal prosecution likely?
Criminal prosecution is reserved for cases where an employer knowingly employs someone without permission to work or has reasonable cause to believe they are working illegally. It requires proof of intent or deliberate disregard. Conviction can result in an unlimited fine, imprisonment and director disqualification. Proper right to work systems remain the most effective safeguard.
Section I: Glossary
| Term | Definition |
|---|---|
| Civil Penalty Notice | A formal notice issued by the Home Office when an employer is found to have employed one or more individuals who do not have the legal right to work in the UK. It states the amount owed, the calculation used and the deadlines for objection or payment. |
| Statutory Excuse | The employer’s legal defence against a civil penalty. It applies where prescribed right to work checks have been carried out correctly before employment begins and, where required, repeated before visa expiry. |
| Right to Work Check | The verification process employers must complete before hiring, using one of the prescribed methods: manual checks, online checks or digital checks via a certified Identity Service Provider for British and Irish passport holders. |
| Referral Notice | The initial notification that the Home Office is considering issuing a civil penalty following an investigation into potential illegal working. |
| Information Request | A formal request from the Home Office inviting an employer to submit evidence within a set deadline. Timely cooperation can reduce penalty amounts. |
| Warning Notice | An outcome available for first-time breaches where the Home Office accepts that right to work systems are generally effective. No financial penalty is imposed, but future breaches attract higher penalties. |
| Fast Payment Option | A 30% reduction available for first penalties if payment is made in full within 21 days. Instalment plans do not qualify for this reduction. |
| Objection | The first opportunity to challenge a Civil Penalty Notice. Employers must file in writing within 28 days of the due date specified in the Civil Penalty Notice, providing evidence to support their grounds for review. |
| Appeal | A formal challenge to the County Court (or Sheriff Court in Scotland) within 28 days of the Objection Outcome Notice. The court can confirm, vary or cancel the penalty. |
| Self-reporting | When an employer voluntarily notifies the Home Office about suspected illegal working before discovery, qualifying for a £5,000 per worker mitigation if a Unique Reference Number is issued. |
| Active cooperation | Providing requested evidence promptly within the deadline stated in the Information Request and assisting the Home Office during an investigation. This can result in a £5,000 per worker reduction in the penalty. |
| Employer Checking Service | A Home Office service that confirms a person’s right to work when documents or online records are unavailable, such as during a pending visa application or appeal. |
| Positive Verification Notice | The document issued by the Employer Checking Service confirming a temporary right to work for six months while a decision on the worker’s immigration status is pending. |
| Sponsor Licence | Permission granted by the Home Office allowing an organisation to employ overseas workers under the points-based immigration system. Civil penalties or compliance failures can affect its status or renewal. |
| eVisa | A digital immigration status that replaces physical documents such as biometric residence permits. Employers must verify it using the Home Office online right to work service and retain the profile page as evidence. |
| County Court Judgment (CCJ) | A court order used to enforce unpaid civil penalties. It can affect an employer’s credit rating, public contracts and ability to obtain finance. |
| Code of Practice on preventing illegal working | The statutory framework explaining how penalties are calculated, when mitigating factors apply and what counts as an effective right to work system. The current version applies to breaches identified on or after 13 February 2024. |
Section J: Additional Resources & Links
| Resource | Description | Link |
|---|---|---|
| Employer’s guide to right to work checks (26 June 2025) | Current Home Office employer guidance for checks done on or after 12 February 2025, including methods, records and online profile page retention. | https://www.gov.uk/government/publications/right-to-work-checks-employers-guide/employers-guide-to-right-to-work-checks-26-june-2025-accessible |
| Employer’s guide to right to work checks (PDF) | Downloadable version of the current employer guidance. | https://assets.publishing.service.gov.uk/media/6878ead80263c35f52e4dd76/26_06_25_Guidance_Right_to_work_checks_-_an_employer_s_guide.pdf |
| Code of Practice on preventing illegal working (accessible) | Statutory code applying to breaches identified from 13 February 2024, including penalty levels and mitigation framework. | https://www.gov.uk/government/publications/illegal-working-penalties-codes-of-practice-for-employers/code-of-practice-on-preventing-illegal-working-right-to-work-scheme-for-employers-13-february-2024-accessible |
| Code of Practice on preventing illegal working (PDF) | Official PDF of the current code, including first and repeat breach calculations and Warning Notice criteria. | https://assets.publishing.service.gov.uk/media/65ba189e4ec51d0014c9f1d2/2024.01.22_FINAL_-_Right_To_Work_Code_of_Practice.pdf |
| Illegal working civil penalties: an employer’s guide | Overview of how the civil penalty scheme operates, including objections, appeals and calculation basics. | https://www.gov.uk/government/publications/illegal-working-fines-employers-guide |
| Employers: illegal working penalties (quarterly reports) | Public listings of employers penalised for illegal working, often referenced by media and counterparties. | https://www.gov.uk/government/collections/employers-illegal-working-penalties |
| Check a job applicant’s right to work | Official service and guidance for online checks and use of share codes. | https://www.gov.uk/check-job-applicant-right-to-work |
| Use the Employer Checking Service | Request a Positive Verification Notice where documents or online status are not available. | https://www.gov.uk/employee-immigration-employment-status |
| Penalties for employing illegal workers | Overview page with employer helpline and contact routes. | https://www.gov.uk/penalties-for-employing-illegal-workers |
| Report an immigration or border crime | Official reporting channels used to self-report suspected illegal working and obtain a Unique Reference Number. | https://www.gov.uk/report-immigration-crime |
