How civil penalties for illegal working apply in the UK
In the UK, employers have a legal duty to ensure that everyone they employ is allowed to work and is doing so within the limits of their immigration permission. If an employer hires someone without the right to work, or allows them to work beyond what their visa permits, the Home Office can issue a civil penalty.
These penalties are enforced under the Immigration, Asylum and Nationality Act 2006 and are investigated by Home Office Immigration Enforcement. Liability can arise even where the breach was unintentional, which is why prevention and proper checks are critical.
Higher civil penalties introduced in 2024-25
The financial consequences of illegal working increased significantly from 13 February 2024. Employers now face fines of up to £45,000 per worker for a first offence and £60,000 per worker for repeat breaches.
For many businesses, particularly smaller employers, these penalties can be financially devastating. Recent enforcement action shows that the Home Office is prepared to impose maximum fines where employers have weak procedures, even if the mistake occurred due to administrative oversight rather than deliberate wrongdoing.
Why the statutory excuse matters for employers
The statutory excuse is an employer’s main protection against civil liability. This legal defence applies when an employer completes the correct right-to-work checks in line with Home Office requirements and keeps proper records.
To rely on this protection, checks must be completed before employment begins and repeated where permission to work is time-limited. Employers should ensure that their recruitment and HR processes are designed to consistently create and maintain this statutory excuse.
Errors that commonly lead to civil penalties
Many civil penalties arise from avoidable mistakes, such as:
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Completing checks after the individual has already started work
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Using outdated or incorrect checking methods
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Failing to keep dated copies of documents or online check results
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Overlooking follow-up checks for workers with expiring visas
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Inadequate identity verification during digital checks
Even well-intentioned employers can fall into these traps. Strong internal systems and clear accountability significantly reduce the risk of non-compliance.
Completing right-to-work checks before work begins
A right-to-work check must always be carried out before the first day of work. This requirement applies equally to unpaid trial shifts, work experience, internships, and roles labelled as “contractor” positions where the individual is effectively working as an employee.
Employers should treat right-to-work verification as a non-negotiable step in their pre-employment process.
Selecting the correct right-to-work check method
The method used to verify a worker’s right to work depends on their nationality and immigration status. Choosing the wrong method can invalidate the statutory excuse.
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British and Irish nationals
Employers may check original documents manually or use a certified Digital Identity Service Provider. -
Workers with a digital immigration status or an eVisa
These individuals must be checked using the Home Office online service. The worker provides a share code, allowing the employer to view their status digitally. Manual document checks are no longer permitted. Employers must also confirm that the digital record matches the person presenting themselves for work. -
Workers are unable to use the online system
Where an individual has a pending application or appeal, employers must use the Employer Checking Service. A statutory excuse only arises once a Positive Verification Notice is received, and any work restrictions listed must be followed carefully.
How to carry out a compliant right-to-work check
A compliant check typically involves:
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Obtaining the correct evidence, such as a share code or original documents
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Verifying the information in the presence of the worker or via live video
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Ensuring the individual’s permission allows them to do the role offered
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Keeping a clear, dated record of the check and who conducted it
Reducing the risk of identity fraud
Identity misuse is an increasing concern, particularly with online checks. Employers are expected to confirm that the photograph and personal details shown in the digital profile genuinely match the individual.
Staff should be trained to spot warning signs, including inconsistencies in personal information, reluctance to show their face clearly, or pressure to rush the process.
Managing follow-up checks for time-limited permission
Where an employee has temporary permission to work, the employer’s protection expires unless a follow-up check is completed on time. Employers should track expiry dates, remind workers in advance, and confirm that new applications are submitted before permission ends.
Using automated reminders or assigning responsibility to a specific compliance officer can help prevent oversights.
Carrying out internal right-to-work reviews
Regular internal reviews help identify gaps before they result in enforcement action. Employers are advised to audit right-to-work records at least once a year and more frequently in high-turnover sectors.
Training staff and updating internal policies
Lack of training is a common factor in civil penalty cases. Anyone involved in recruitment or onboarding should receive formal right-to-work training, with refresher sessions at least annually.
Employers should also ensure their internal policies reflect current Home Office guidance and are consistently applied.
Responsibilities involving contractors and business transfers
Employers may still be held responsible if they knowingly, or should reasonably have known, that illegal working is taking place through a contractor. Similar risks arise during TUPE transfers or business acquisitions if right-to-work checks are not carried out where required.
What to do if you receive a civil penalty notice
If a Civil Penalty Notice is issued, professional advice should be sought promptly. Depending on the circumstances, it may be possible to challenge the penalty. Where payment is required, early settlement can reduce the amount payable through available discounts.
A simple compliance checklist for employers
To reduce the risk of civil penalties, employers should:
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Complete right-to-work checks before employment starts
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Use the correct checking method for each worker
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Verify identity carefully and consistently
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Follow all work restrictions linked to immigration status
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Keep accurate and dated records
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Schedule follow-up checks where needed
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Review compliance regularly
Need visa or immigration compliance support?
If you require assistance with right-to-work compliance, sponsor duties, or any UK visa or immigration matter, LawSentis is here to support you. We are a UK-based, IAA-regulated immigration practice providing practical, business-focused advice.
Contact LawSentis today for expert guidance and reliable immigration support.