Civil Penalties for Illegal Working: What Employers Need to Know

Illegal working enforcement is a growing focus for the Home Office. Employers who fail to carry out proper right to work checks - or ignore their obligations altogether - can face civil penalties of up to £60,000 per illegal worker from August 2024.

This guide explains what civil penalties are, how they’re issued, and most importantly, how employers can avoid them through robust processes and ongoing vigilance.

1️⃣ What is a Civil Penalty for Illegal Working?

A civil penalty is a fine issued by the Home Office when an employer is found to have employed someone who does not have the right to work in the UK.

These penalties are part of the UK’s illegal working enforcement regime, and they apply to all employers, regardless of whether you’re a sponsor licence holder.

From August 2024, the penalty amounts increased to:

• £45,000 for a first offence (up from £15,000)

• £60,000 for repeated offences

The fine is per illegal worker, so costs can escalate quickly - especially for larger or multi-site employers.

📌 imminova Tip: Even British citizens can be a risk if no check is done - e.g. born in the UK but not a British citizen. Never assume someone has the right to work. Always check.

2️⃣ When Are Civil Penalties Issued?

Civil penalties are issued when the Home Office finds that an employee:

• Never had permission to work (e.g. illegal entrant)

• Had permission to work, but not in the role you employed them for

• Visa expired during employment

• Used false or fraudulent documents - you failed to spot and do not have a statutory excuse

This usually follows an unannounced Home Office compliance visit or intelligence-led raid. In many cases, employers are unaware there’s an issue until enforcement officers turn up.

📌 imminova Tip: Regular internal audits are essential. Many civil penalties occur because employers don’t realise a BRP or digital status has expired. We recommend tracking expiry dates and running routine checks every quarter - if you use an immigration software with automatic reminders even better!

3️⃣ What is a Statutory Excuse?

You can avoid a civil penalty if you have a valid statutory excuse. This means you carried out an acceptable right to work check before employment began.

To establish a statutory excuse, you must:

• Check original documents from List A or List B, or

• Use the Home Office online right to work check for digital status holders

• Ensure the check was done before the individual started work

• Keep a copy of the check with the date recorded clearly

There are different requirements depending on the type of document. Repeat checks are needed for List B employees (limited-time visas).

📌 imminova Tip: Our platform automatically identifies whether a worker is List A or B based on the document uploaded, and tracks follow-up checks before expiry - reducing risk of civil penalties.

4️⃣ What Happens If You Receive a Civil Penalty?

You will receive a Notice of Liability outlining:

• The name(s) of the worker(s)

• The reasons for the penalty

• The proposed fine

• Your right to object or appeal

You typically have:

• 28 days to respond or object

• 12 months to pay (if no objection is upheld)

If you pay early or cooperate fully, the Home Office may reduce the fine - but they also consider any past offences or failure to cooperate.

📌 imminova Tip: Don’t panic - respond quickly and seek professional advice. In many cases, a penalty can be reduced or even cancelled if you can demonstrate a valid statutory excuse or procedural failure on the Home Office’s part.

5️⃣ How to Avoid Civil Penalties Altogether

Prevention is the best strategy. To stay compliant:

• Carry out right to work checks before day one

• Use the correct method based on the worker’s status

• Track visa expiry dates and schedule follow-up checks

• Maintain clear, timestamped records of all checks

• Audit your workforce regularly - including British nationals

📌 imminova Tip: Don’t rely on a one-time setup. We’ve seen cases where HR changes, process breakdowns, or unchecked assumptions lead to costly enforcement. Build compliance into your daily operations.

Final Thoughts

Civil penalties are a real and growing risk - particularly with the Home Office’s increased enforcement powers and new penalty rates. But with the right systems in place, they’re entirely avoidable.

Whether you're sponsoring workers or hiring locally, the message is clear: check, record, and repeat.

Need help reviewing your compliance processes? imminova’s platform and expert team ensure your records are accurate, up to date, and audit-ready - no matter the size of your organisation.

📩 Book a call with our compliance team today.