In the United Kingdom, illegal working is a serious matter that is tackled with a comprehensive and multi-agency approach. The government has put in place stringent laws, regular enforcement operations, and close coordination across departments to identify, prevent, and penalize both illegal workers and the employers who hire them. The goal is to maintain fairness in the labor market, reduce exploitation, and ensure compliance with immigration laws.
This blog explores in detail the types of sanctions imposed against illegal working and how employers and workers can avoid falling foul of these laws.
A Whole-Government Approach to Enforcement
Illegal working is not dealt with by one department alone. The UK government employs a whole-government approach, involving multiple agencies, including:
- Home Office
- HM Revenue and Customs (HMRC)
- Licensing authorities
- Local councils
- Law enforcement
These bodies collaborate by sharing intelligence, conducting joint enforcement operations, and applying a wide range of penalties when illegal working is discovered. This systematic coordination ensures that employers cannot easily escape scrutiny.
What Happens If You Employ Someone Illegally?
Employing someone who does not have the legal right to work in the UK can result in serious consequences. If an employer fails to carry out the proper right-to-work checks and hires an illegal worker, they may face one or more of the following sanctions:
1. Civil Penalties
The most common sanction is a civil penalty – which can go as high as £60,000 per illegal worker. The amount depends on several factors including:
- Whether this is a repeat offense.
- The number of illegal workers found.
- Mitigating actions taken by the employer.
Employers will be served a Civil Penalty Notice, which details the fine and the date for payment. The notice also outlines how employers can object or appeal the decision. However, an objection must always be submitted before pursuing a court appeal, except in specific circumstances.
2. Criminal Convictions
In more serious cases, if it is proven that the employer knew or had reasonable cause to believe that they were hiring an illegal worker, they may be charged under Section 21 of the Immigration, Asylum and Nationality Act 2006, amended by the Immigration Act 2016.
Penalties include:
- Up to five years in prison
- Unlimited fines
This criminal offense is pursued when employers deliberately and knowingly employ workers without proper documentation or immigration status.
3. Business Closure and Compliance Orders
For businesses that persistently break the law, authorities may issue illegal working closure notices. This results in:
- Temporary closure of the business.
- Prohibition of paid or voluntary work on the premises.
- Court-issued compliance orders that impose strict operational conditions.
Such businesses are monitored closely by Immigration Officers to ensure that they do not repeat the offense.
4. Disqualification as a Director
Employers convicted of illegal working offences may also face disqualification from acting as a company director, restricting their ability to run or manage a business in the future.
5. Loss of Sponsorship Privileges
Employers found guilty of employing illegal workers may lose their right to sponsor migrants under the UK’s points-based immigration system. This can severely impact sectors like healthcare, hospitality, and IT that depend on overseas talent.
6. Licence Revocation in Regulated Sectors
If you operate in the alcohol, late-night refreshment, or private hire vehicle and taxi sectors, a civil penalty or criminal conviction may lead to a review or revocation of your operating licence.
7. Publication as a Non-Compliant Employer
Employers who receive civil penalties are listed in a public quarterly report. This report details:
- Name of the employer
- Number of illegal workers employed
- Value of penalties issued
Being named publicly can damage a business’s reputation and credibility.
The Civil Penalty Scheme Explained
The civil penalty system is designed to enforce compliance in a fair and structured way. The ‘Code of Practice on Preventing Illegal Working’ provides guidance on how penalties are assessed, including any mitigating factors that could reduce the penalty amount.
The Employer’s Guide to Administration of the Civil Penalty Scheme explains:
- The different stages of the penalty process
- How decisions are made
- Time limits for objections and appeals
- Notices that may be served
Receiving a civil penalty doesn’t just hurt financially. It may also affect:
- Your ability to sponsor future migrant workers
- Your eligibility for a Gangmaster’s licence
- Your application for any future immigration matter, if you are also subject to immigration control
Role of Licensing Authorities in High-Risk Sectors
The Immigration Act 2016 also strengthened checks in high-risk sectors, including:
- Taxi and private hire vehicle services
- Sale of alcohol and late-night refreshments
When applying for or renewing a licence in these sectors, applicants must prove their right to work in the UK. Licensing authorities will reject applications or revoke licences if:
- The applicant does not have the legal right to work
- The employer has been penalized for immigration violations
In some cases, the Home Office can also raise objections or make representations if granting a licence may promote illegal working.
Prevention Is Better Than Penalty
To avoid the severe consequences of hiring illegal workers, employers must:
- Conduct right-to-work checks before hiring
- Keep proper documentation
Use the Employer Checking Service if a candidate cannot present standard documents
Employers can establish a statutory excuse—a legal defense—if they follow the correct procedure and still end up hiring an illegal worker unknowingly. However, if you knowingly employ someone who does not have permission to work, this excuse no longer applies.
Navigating UK Right-to-Work Checks: Protecting Your Business
The UK maintains a firm stance on illegal working, and employers bear a significant responsibility in ensuring compliance. Failing to verify employee eligibility can lead to severe penalties, including substantial fines, imprisonment, and potential business closure. Such consequences can also inflict lasting reputational damage, impacting future opportunities. At Ash Norton Solicitors, we understand the complexities of right-to-work checks and can provide expert guidance to protect your business. By proactively adhering to regulations and implementing robust verification procedures, you not only safeguard your operations but also contribute to the integrity of the UK labour market. Contact us today to discuss your specific needs and ensure your practices align with current legislation.
