Hiring staff is one of the biggest responsibilities for any employer, and with it comes a duty to comply with immigration law. The UK government requires all employers to ensure their workers have the legal right to work in the country. Failing to do so can result in heavy financial penalties and, in some cases, criminal prosecution. Recent changes in 2024 and 2025 have made the penalties harsher than ever, as part of a wider crackdown on illegal working.
How employers are penalised
If you employ someone who does not have permission to work in the UK and you cannot show that you carried out the correct right-to-work checks, you may be issued with a civil penalty. As of 2024, fines have tripled. Employers can now face up to £45,000 per worker for a first offence, and up to £60,000 per worker for repeat breaches.
In the most serious cases – where it can be shown that an employer knowingly employed someone illegally – criminal sanctions may also apply. These include unlimited fines and even prison sentences of up to five years.
Enforcement trends and real-life fines
The government has significantly stepped up enforcement activity. Between January and March 2025 alone, over 740 civil penalty notices were issued, totalling more than £41 million in fines. This shows how determined the Home Office is to make examples of employers who fail to comply.
One high-profile case in Surrey involved a fish-and-chip shop owner who faced a fine of £40,000 after unknowingly employing someone using stolen identity documents. Although he managed to negotiate a reduced penalty of £28,000, the case illustrates how devastating these fines can be for small businesses, even when mistakes are genuine.
Statutory excuse: compliance is key
The law recognises that employers cannot always detect false documents. For this reason, there is a defence known as the statutory excuse. If an employer can show that they carried out proper right-to-work checks in line with Home Office guidance, they will not be liable for a civil penalty, even if the worker is later found to be illegal.
To establish this defence, employers must check original documents (or approved online share codes), keep copies and record the date of the check. Following these procedures carefully can mean the difference between avoiding a penalty and facing a five-figure fine.
Mitigating factors can also reduce penalties, such as demonstrating cooperation with enforcement officers or paying promptly – where discounts of up to 30% may apply.
Legal process and appeal rights
When the Home Office suspects illegal working, employers may first receive a Civil Penalty Referral Notice. This is followed by an Information Request, giving the business an opportunity to submit evidence that right-to-work checks were properly carried out.
If a penalty is imposed, the employer receives a Civil Penalty Notice. This sets out the fine amount and the reasons for it. Employers can challenge the penalty by lodging a written objection within 28 days. If the Home Office maintains the fine, the next step is to appeal through the County Court.
How to protect your business
The rise in fines for employing illegal workers shows how seriously the UK government is tackling immigration compliance. For employers, the message is clear – robust systems for right-to-work checks are essential. Without them, businesses risk not only financial loss but also reputational harm and damage to their ability to sponsor overseas staff.
At Osbourne Pinner Solicitors, our business immigration specialists help employers audit their processes, carry out compliant checks and respond effectively to penalty notices. With the right legal support, you can protect your business while ensuring compliance with the law. Book a 30-minute consultation for free to find out how to protect your business.
Call 0203 983 5080, email [email protected] or use the form below to arrange your session. We’re close by in Harrow, Canary Wharf, Piccadilly Circus and Manchester – or you can speak to us on a video call.
