Home Office to crackdown on illegal working in the UK with significant increases in penalties

In 2023, the Home Office announced its intention of increasing fines for employers from the current level of £15,000 up to the value of £45,000, with fines for repeat breaches increased from £20,000 to £60,000. These fines were enacted on the 13 February 2024.

On 12 February, the Home Office also published a new version of guidance on the right to work, including additional information on the status of EU nationals. In effect, this will end the automatic "assumption" of a right to work for EU nationals and render many more business liable for civil penalties.

The Home Office has released further details surrounding the policies of these updated fines.

Reports made by the employer

If a report has been made to the Home Office by the employer, and they have received a unique reference number confirming the same,  then the fine for each illegal worker will be decreased by £5,000. The suspected illegal worker must be reported to the helpline of UK Visas and Immigration, which will consider this factor for the first and any repeat breaches.

Active cooperation

If the employer actively cooperates with the Home Office during the investigation, this will also lead to a reduction of £5,000 per illegal worker. Active co-operation includes providing access to premises and records, responding honestly and promptly during enforcement visits, being available during an investigation if required, and full and prompt disclosure of evidence.

Checks on right to work

If the employer has not been shown to employ illegal workers within the past three years, has effective recruitment practices, has evidenced its reporting of illegal workers and cooperated with the Home Office, their penalty will be reduced to the minimum level of warning notice.

Compliance with preventing illegal worker employment can be demonstrated through effective checking practices, robust document checking systems, thorough and consistent right-to-work checks and retaining records of these checks on staff, and a history of compliance with sponsor requirements.

Osborne Clarke comment

It is critical that businesses ensure that they are compliant with all policies around the right to work and the prevention of illegal employment. Businesses should always ensure that they are up to date with compliance checks and documents on the right to work to avoid increased fines.