Right-to-Work Check Penalties: What Employers Risk

The Penalty Framework

The UK government uses a tiered penalty system to enforce illegal working prevention. There are two levels of liability:

• Civil penalties: Fines imposed without the need for criminal prosecution. These apply when an employer has not conducted a compliant right-to-work check and the worker is found to be working illegally.
• Criminal sanctions: Prosecution for employers who knowingly employ someone without the right to work. This carries imprisonment and unlimited fines.

Civil Penalty Amounts

The code of practice in force since 13 February 2024 sets the starting amounts:

• First breach: £45,000 per worker. This calculation is used where the employer has not been found employing illegal workers within the previous three years
• Repeat breach: £60,000 per worker, where such a finding was made within the previous three years

The amount is per worker, so an employer found with several is charged for each. Nothing in the code varies the figure by the size of the employer.

How Penalties Are Calculated

The starting amount is adjusted by three named factors, in this order:

• Reporting. £5,000 off per worker where the employer reported its own suspicion about a worker’s right to work to the Home Office and holds the Unique Reference Number acknowledging it
• Active cooperation. £5,000 off per worker for cooperating with the Home Office investigation
• Effective checking practices. On a first breach only, an employer that shows effective right to work checking practices and meets both of the factors above receives a warning notice rather than a penalty at all

Once a penalty is issued, the code offers a faster payment option: a first-time recipient who pays in full within 21 days has it reduced by 30%. Instalments can be requested instead, usually over up to 24 months.

The Statutory Excuse

The only way to protect yourself from civil penalties is to establish a statutory excuse by conducting a compliant right-to-work check. This means:

1. Checking the employee's documents or share code before they start work.
2. Following the right procedure for that person: an online check using a share code, a manual check of original documents from the Home Office lists, or a certified identity service provider for British and Irish passport holders.
3. Keeping copies of documents and recording the date of the check.
4. Conducting follow-up checks before any time-limited permission expires — and every 6 months where the excuse rests on a Positive Verification Notice from the Employer Checking Service.

If you did all of this correctly and a worker is later found to be working illegally, you will not receive a civil penalty. See the employer's guide on GOV.UK for the detailed procedure.

Criminal Prosecution

Criminal prosecution is reserved for cases where the employer knew or had reasonable cause to believe that the worker was not permitted to work. Indicators that may lead to prosecution include:

• The employer had been warned about the worker's status
• The employer previously received a civil penalty
• The employer ignored obvious signs that documents were fraudulent
• The employment appeared to be part of a wider exploitation scheme

Impact on Sponsor Licence

If you hold a sponsor licence, a civil penalty for illegal working is particularly serious. It can lead to:

• Downgrading from A-rated to B-rated, which means an action plan costing £1,579, payable within 10 working days, and no new sponsorship for 3 months
• Suspension of the licence
• Revocation of the licence

Revocation shortens the permission of every sponsored worker, normally to 60 calendar days. A civil penalty also carries a cooling-off period: part 1 of the sponsor guidance sets 12 months from the date the penalty was paid in full before a new licence application can succeed, and says an application is always refused while the penalty is unpaid.

Objecting to a Penalty

An objection goes to the Home Office in writing within 28 days of the due date specified in the notice. The grounds are that you are not liable, that you have a statutory excuse because the prescribed check was made, or that the amount is too high.

If the objection is rejected, an appeal goes to the county court in England and Wales, or the sheriff court in Scotland, within 28 days of the date on the objection outcome notice or on any new penalty notice.

Next Steps

The amounts and the factors are published in the code of practice on preventing illegal working. The check that avoids all of it is in the employer’s guide to right to work checks. A solicitor can act on a particular penalty notice; Rowan sets out the published rules only.

Related guides:

• Right to Work in the UK
• Preventing Illegal Working
• Civil Penalty for Right to Work
• Illegal Working Penalties
• Employer Sponsor Duties
• Home Office Contact Guide

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