Received a Fine for Illegal Workers?

With the Home Office continuing its renewed focus on illegal employment enforcement, more employers are facing penalties such as fines for illegal workers.

Immigration breaches are more common than you may think. They can result from a number of areas, including what may seem relatively minor administrative errors or oversights.

If your organisation receives a civil penalty notice for illegal working, after the initial panic, you may be wondering what to do next.

 

What is a civil penalty for illegal working?

 

A fine for illegal workers is a penalty imposed on UK employers who hire individuals without the legal right to work in the UK, in breach of section 15 of the Immigration, Asylum and Nationality Act 2006.

The civil penalty regime exists to ensure employers of migrant workers are compliant with immigration rules and that all their personnel have the relevant permissions to work in the UK.

Employers who fail to carry out proper right to work checks can face substantial financial penalties. The rules apply equally to all employers, covering diligent employers who ‘unknowingly’ hire illegal personnel, for example because of a flaw in their onboarding processes, as well as employers who choose to ignore their obligations.

Fines can reach up to £45,000 for an initial breach, increasing to up to £60,000 per illegal worker, depending on whether the employer has previous breaches. If an employer is found to have knowingly hired illegal workers, they may also face criminal charges, which could lead to imprisonment and an unlimited fine.

Key risks include reputational damage, as businesses found guilty of employing illegal workers may be publicly named by the government. Losing a sponsorship licence is another consequence, which can severely impact a company’s ability to hire overseas workers in the future. Employers must also consider potential business disruption if staff are removed due to immigration enforcement action.

To avoid penalties, businesses should conduct thorough right to work checks before employment begins. Keeping records of checks and using the Home Office’s online verification system can help ensure compliance. Seeking legal advice may be beneficial for companies unsure about their responsibilities under immigration law.

 

You’ve received notice of a fine for illegal workers – what should you do next?

 

If your organisation has received a fine for illegal workers, your next steps are vitally important. You must now follow the process with regards to either accepting and paying the fine, or challenging the penalty. Either way, you are under time pressure to make a decision and take action – in most cases, you will have only 28 days to pay the fine or to appeal to the Home Office by returning an objection form.

As you would expect, the Home Office encourages employers to accept fines. Payment plans can be arranged and if full payment is received within 21 days of the notice, the organisation will receive a 30% discount.

However – an employer who receives a civil penalty for immigration may consider objecting to the notice by providing further evidence. Compared with settling, the objection process may at first appear risky and not worth the hassle and expense. The main consideration is that challenging a civil penalty can result in the Home Office increasing the original level of fine. You need to be confident there are no grounds to justify an increase in the level of penalty.

But, depending on the circumstances, there may be benefits to challenging a civil penalty with a view to having it cancelled. The levels of fines are considerable, and the reputational hit of being found to have employed illegal workers is damaging. Employers should also bear in mind that accepting a fine carries other ramifications such as potential impact on future Home Office applications.

As such, it is usually worth considering the strength of your potential defence against a fine for illegal working by taking professional advice on your case.

You need to appraise the merit of UKVI’s case against you. In some circumstances, where the evidence against you and in support of the breach is overwhelming or indisputable, you may well be best advised to accept and pay. In these instances, you must also ensure you take the learnings from the cause of the breach, and adjust your systems accordingly. You will now be on the Home Office radar, and more likely to be singled out for an unannounced site visit at a future date to ensure you have undertaken and maintained compliant procedures.

If you do decide to proceed with challenging the civil penalty for illegal employment, you will need to follow the prescribed steps to present a challenge. This includes building a defence based on any of the specific grounds that are available in your circumstances:

 

No proof of the offence

This is where you are not liable because you did not employ an illegal worker. The Home Office must provide sufficient evidence to prove a person did not have the appropriate right to work in the UK and that the organisation employed that person. A valid defence may simply be that it has failed to do this.

 

The due diligence excuse

This applies where you performed the required right to work checks on the alleged illegal employee and therefore can rely on a statutory excuse against the penalty. You are excused from paying a civil penalty UK immigration notice if you can show you have complied with the ‘prescribed requirements’ in relation to the employment by producing evidence of compliant checks.

 

Statutory mitigating factors

This is where the penalty is too high because mitigating factors were not properly taken into account.

 

The Home Office has exceeded its powers

This is where it can be shown that the Home Office has obtained evidence unfairly or in excess of its statutory powers.

 

Other mitigating factors

A broader interpretation of the wording in the Act suggests the Home Office should consider all relevant factors and determine whether it is appropriate to issue a penalty at all, rather than take into account only those considerations specifically contained in the Home Office guidelines.

 

 

If your written appeal is rejected, the next stage is to make a further objection to the County Court. You have to do this within 28 days of the Home Office’s final decision. This will lead to a rehearing, where the court can look at any documentation it considers relevant, including documents not considered by UKVI, although the majority of challenges tend to settle ahead of a hearing.

 

Need assistance?

 

The expense, time and energy required to object and appeal a decision may seem daunting, but if a business receives a civil penalty UK immigration notice, there are significant consequences and many reasons to appeal a civil penalty for immigration. Given what is at stake, all civil penalties should be taken seriously. If a business decides to object or appeal a decision, these applications must be well prepared, with detailed submissions and supporting evidence.

We are experienced advisers to employers defending fines for illegal working. We will assess the merit of your case against Home Office evidence and advise on an appropriate course of action for your specific circumstances. For more information on civil penalties for illegal employment, please get in touch.

 

Fine for illegal workers FAQs

 

What are the fines for employing illegal workers in the UK?

Employers can face fines of up to £60,000 per illegal worker. Repeat offenders or those found to have knowingly employed illegal workers may also face criminal prosecution.

 

How can employers check an employee’s right to work?

Employers must conduct right to work checks using official documents, such as a passport or biometric residence permit, or by using the Home Office’s online checking service.

 

Can an employer be fined if they unknowingly hire an illegal worker?

Employers can still receive a fine if they fail to carry out proper right to work checks, even if they were unaware of the worker’s immigration status.

 

What happens if an employer is caught hiring illegal workers?

Employers may receive a civil penalty notice, face fines, lose their sponsorship licence, and, in serious cases, be prosecuted, leading to imprisonment.

 

Can a fine for illegal workers be appealed?

Employers have the right to challenge a civil penalty if they believe it was issued unfairly or if proper right to work checks were conducted.

 

What is considered illegal employment in the UK?

Illegal employment occurs when someone works without the legal right to do so, such as without a valid visa, work permit, or proper documentation.

 

How can employers avoid fines for illegal workers?

Employers should conduct thorough right to work checks, keep records of documents, and use the Home Office’s online checking service to verify an employee’s work status.

 

What should an employer do if they discover an illegal worker?

Employers should immediately report the situation to the Home Office, terminate employment if necessary, and ensure future right to work checks are properly conducted.

 

Can employing illegal workers affect a company’s reputation?

Businesses found guilty of hiring illegal workers may be publicly named by the government, damaging their reputation and trust with customers and stakeholders.

 

Are there criminal penalties for hiring illegal workers?

In addition to fines, employers who knowingly hire illegal workers can face up to five years in prison and an unlimited fine.

 

Do employers need to check right to work for all employees?

Yes, employers must check every employee’s right to work, regardless of nationality, to avoid discrimination and ensure compliance with UK immigration laws.

 

Can an employer be fined for self-employed illegal workers?

If an employer knowingly hires self-employed workers who do not have the right to work, they can still face penalties.

 

Is there a grace period for right to work checks?

No, right to work checks must be completed before employment begins to ensure compliance with immigration laws.

 

Can a business lose its licence for hiring illegal workers?

Businesses with a sponsorship licence can have it revoked if they fail to comply with immigration rules, affecting their ability to hire foreign workers.

 

Glossary

 

Term	Definition
Illegal Worker	An individual who does not have the legal right to work in the UK due to visa restrictions or lack of proper documentation.
Right to Work	The legal status allowing a person to be employed in the UK, verified through documents or the Home Office’s online checking system.
Fine for Illegal Workers	A financial penalty imposed on UK employers who hire individuals without legal permission to work.
Civil Penalty	A fine issued to employers for hiring illegal workers, which can be up to £60,000 per worker depending on previous offences.
Criminal Penalty	A more severe punishment, including imprisonment and unlimited fines, for employers who knowingly hire illegal workers.
Right to Work Check	A process where employers verify a worker’s immigration status through official documents or the government’s online checking service.
Sponsorship Licence	A permit required for UK employers to hire workers from outside the UK under work visa schemes.
Home Office	The UK government department responsible for immigration enforcement, including issuing fines and conducting inspections.
Certificate of Sponsorship (CoS)	A document issued by a licensed employer to support a work visa application under the Skilled Worker visa scheme.
Employer Compliance Visit	An inspection carried out by the Home Office to check whether businesses are following right to work regulations.
Statutory Excuse	A legal defence for employers who can prove they conducted proper right to work checks before hiring an employee.
Disqualification	The potential ban on individuals from acting as company directors if found guilty of hiring illegal workers.
Public Naming	A government practice of publishing the names of businesses fined for employing illegal workers, leading to reputational damage.