The UK government has drastically raised the stakes for employers who fail to carry out proper Right to Work (RTW) checks. Since February 2024, the civil penalties for employing illegal workers have tripled, representing the most significant hike in immigration fines in recent history. For small businesses, a single error can now lead to insolvency.
The New Penalty Structure
The Home Office views illegal working as a key driver of illegal migration. To deter this, the financial consequences have been recalibrated to be punitive.
- First Breach: The fine has risen from £15,000 to £45,000 per illegal worker.
- Repeat Breaches: For employers with a history of non-compliance, the fine is now £60,000 per illegal worker.
Scenario: A restaurant employing three kitchen porters whose visas have expired, without conducting follow-up checks, would face a first-time fine of £135,000.
Comprehensive Scope
These penalties apply to any employer, regardless of size or sector. This includes:
- Householders employing private staff (nannies, cleaners).
- Gig economy platforms.
- Established corporations. The “I didn’t know” defence is invalid if the employer cannot produce a “Statutory Excuse” (proof of a compliant check).
Establishing a Statutory Excuse
To avoid these fines, employers must perform a compliant check before the employee starts work.
1. Digital Checks (Share Codes)
For holders of BRPs, BRCs, or E-Visas, manual checks of physical cards are no longer legally valid. Employers must use the Home Office online checking service. The employee provides a share code, and the employer verifies the photo and retains the profile page PDF.
2. IDSP (Identity Service Providers)
For British and Irish citizens, employers can use certified digital technology (IDTC) providers to verify passports remotely for a fee, streamlining the onboarding of domestic staff.
3. Manual Checks
Manual checks are now largely restricted to British/Irish citizens who do not wish to use digital IDSPs. The employer must see the original passport, check the photo/DOB, and sign/date a copy.
Common Pitfalls
Where do employers go wrong?
- Student Visas: Hiring international students is high-risk due to strict term-time working hour caps (usually 20 hours/week). If a student works 21 hours during term time, they are working illegally. The employer is liable for the full £45,000 penalty.
- Expired Visas: Failing to have a reminder system for when a temporary visa expires. If the employee does not provide proof of a pending application (Section 3C leave), they must stop working immediately.
- Contractors vs. Employees: Assuming that “self-employed” contractors don’t need checking. The Home Office often looks through sham self-employment arrangements.
”Name and Shame”
Beyond the crippling fines, the Home Office publishes a quarterly report of employers found liable for civil penalties. Being on this “name and shame” list can:
- Lead to the revocation of any existing Sponsor Licence.
- Cause immediate breach of banking covenants or supplier contracts.
- Destroy local reputation.
Conclusion
The tripling of fines turns Right to Work compliance from an HR administrative task into a critical board-level risk. Businesses should urgently audit their current workforce files to ensure that every single employee has a Statutory Excuse on file. In the current climate, a missing PDF could cost £45,000.