Civil Penalties for Employing Illegal Workers

Updated 27 March 20269 min read

What you need to know

UK employers face civil penalties of up to £60,000 per illegal worker if they fail to conduct proper right-to-work checks. Conducting prescribed checks before employment creates a statutory excuse that protects employers. This guide covers the penalty framework, check requirements, and compliance best practices.

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The Legal Framework

Under the Immigration, Asylum and Nationality Act 2006, employers must check that all employees have the legal right to work in the UK. If an employer employs someone who does not have this right, the employer faces a civil penalty unless they can demonstrate they conducted the prescribed checks.

This applies to all employers, regardless of size, sector, or the number of employees.

Penalty Levels

Civil penalty levels in 2026 are:

  • First breach: Up to £45,000 per illegal worker (or up to £60,000 depending on the circumstances)
  • Repeat breach: Up to £60,000 per illegal worker

These penalties are per worker, meaning an employer with multiple illegal workers faces multiple fines. The Home Office considers factors such as the employer's history of compliance, cooperation with the investigation, and whether active reporting played a role.

How to Conduct Right-to-Work Checks

To establish a statutory excuse, employers must follow the prescribed checking process:

  1. Obtain original documents from the employee that prove their right to work (from the acceptable documents lists)
  2. Check the documents in the presence of the holder. Verify they are genuine, the person matches the photo, the dates are valid, and the right to work has not expired
  3. Make and retain copies of the documents, recording the date the check was made. Retain for the duration of employment plus 2 years

Alternatively, use the Home Office online checking service with the employee's share code to verify their right to work digitally.

Follow-Up Checks

If an employee has time-limited permission to work (for example, a visa with an expiry date), the employer must conduct a follow-up check before the permission expires. This maintains the statutory excuse.

British citizens, Irish citizens, and those with ILR or settled status have permanent right to work. No follow-up checks are needed for these employees. See our guide on citizenship and right to work.

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The Statutory Excuse

If you conduct the prescribed checks correctly and in good faith, you have a statutory excuse. This means:

  • You will not receive a civil penalty even if the employee turns out not to have the right to work
  • The Home Office cannot hold you liable for unknowingly employing an illegal worker
  • You must be able to produce copies of the documents and evidence of the check if asked

Criminal Offence

Separate from the civil penalty, it is a criminal offence under Section 21 of the Immigration, Asylum and Nationality Act 2006 to knowingly employ someone who does not have the right to work. This carries:

  • An unlimited fine
  • Up to 5 years' imprisonment

The criminal offence requires the employer to have known or had reasonable cause to believe the worker did not have the right to work. The civil penalty applies where the employer did not know but failed to check.

Employer Best Practices

To protect your business from civil penalties:

  • Conduct right-to-work checks on every new employee before they start, regardless of nationality or appearance
  • Set up a diary system to remind you when follow-up checks are due for employees with time-limited permissions
  • Keep organised records of all checks conducted
  • Train HR staff and hiring managers on the correct process
  • Do not discriminate. Check everyone equally to avoid claims of racial discrimination

For more on employer duties, see our guides on employer responsibilities and sponsor duties.

Challenging a Penalty

If you receive a civil penalty notice, you can object to the Home Office within 28 days. You can challenge the penalty on the grounds that you conducted the prescribed checks, the employee did have the right to work, or the penalty amount is too high.

If your objection is unsuccessful, you can appeal to the county court (in England and Wales) or sheriff court (in Scotland) within 28 days of the Home Office's decision.

This guide is general information, not immigration advice. Immigration rules change frequently. For advice on your specific situation, consult an OISC-registered adviser or immigration solicitor. Always check GOV.UK for the latest rules.

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