Illegal Working Penalties for UK Employers: Guide

Civil Penalties

The civil penalty scheme imposes fines on employers who employ people without the right to work:

• First breach: £45,000 per illegal worker. This calculation is used where you have not been found to be employing illegal workers in the previous 3 years.
• Repeat breach: £60,000 per illegal worker. This calculation is used where you have been found to be employing illegal workers in the previous 3 years.

Those are starting points, not the final bill. The code of practice sets out two mitigating factors, each worth £5,000 per worker off the total: reporting the suspected illegal worker to the Home Office and receiving a Unique Reference Number, and actively co-operating with the Home Office. On a first breach only, an employer who meets both of those and can show effective right to work checking practices receives a Warning Notice instead of a penalty. On a repeat breach a Warning Notice is not available.

The current amounts took effect on 13 February 2024, up from £15,000 for a first breach and £20,000 for a repeat breach. The Home Office can issue penalties to any employer, from a multinational company to a small business or an individual householder.

See our civil penalty guide for more detail on the penalty assessment process.

Criminal Prosecution

In serious cases, employers can face criminal prosecution under Section 21 of the Immigration, Asylum and Nationality Act 2006. This applies when the employer knew or had reasonable cause to believe that the worker did not have the right to work.

Criminal penalties include:

• Up to 5 years' imprisonment.
• An unlimited fine.
• Proceeds of crime confiscation orders.

The Statutory Excuse

Your protection against civil penalties is the statutory excuse. You establish this by conducting right to work checks correctly:

1. Before the person starts work: The code of practice says the check must be done “before the employee commences employment”. Doing it on their first day, or in their first week, is too late — the statutory excuse is not established, even if the person turns out to have the right to work. Check the documents, use the Home Office online checking service, or use an Identity Service Provider's Identity Document Validation Technology.
2. Record the check: Keep a clear, dated record of the check and copies of documents.
3. Follow-up checks: For employees with time-limited permission, conduct a follow-up check before their current permission expires.

If you have conducted checks correctly and the person turns out to be working illegally (for example, using forged documents that appeared genuine), the statutory excuse protects you from civil penalties.

Common Mistakes

• Not checking at all: Assuming the person has the right to work based on their appearance or nationality is both discriminatory and leaves you without a statutory excuse.
• Checking the wrong documents: Only documents on the Home Office's acceptable list count. Check the employer's guide.
• Missing follow-up checks: If an employee's visa expires and you do not re-check, you lose your statutory excuse from the expiry date.
• Not keeping records: You must retain a clear copy for the duration of employment and for 2 years after it ends, then destroy it securely.

What Happens During an Enforcement Visit

Immigration Enforcement officers can visit your premises to check whether your workers have the right to work. During a visit:

• Officers may ask to see your employees and their documents.
• They may check your right to work records.
• If illegal workers are found, they may be arrested.
• You will receive a referral notice if a civil penalty is being considered.

Appealing a Civil Penalty

If you receive a civil penalty notice, you can:

• Pay early at a discount: The faster payment option reduces the penalty by 30% if it is paid in full within 21 days. It is only available on a first penalty and cannot be combined with paying in instalments.
• Object to the Home Office: In writing, within 28 days of the due date on the notice, on one of the grounds set out on the Objection Form — for example that you are not liable, that you have a statutory excuse, or that the amount is too high.
• Appeal to the court: If the objection outcome leaves you liable, you can appeal within 28 days to the County Court in England, Wales and Northern Ireland, or to the Sheriff Court in Scotland.

If you neither pay, object nor appeal by the dates on the notice, the penalty is registered with the civil court and enforcement can begin. For related guidance, see our sponsor licence guide, civil penalty guide, Skilled Worker visa guide, and Section 3C leave guide.

Best Practices for Employers

• Check every employee's right to work before they start. No exceptions.
• Use the online checking service for anyone whose status is an eVisa. Biometric residence permits stopped being issued at the end of 2024, so a share code from a UKVI account, rather than a card, is what most people will give you.
• Set diary reminders for follow-up checks before visa expiry dates.
• Train HR staff on right to work check procedures.
• Keep organised records that can be produced quickly during a visit.
• See our employer responsibilities guide for comprehensive compliance guidance.

Questions and answers