UK Employer fines for illegal immigration working triple in 2024

By Sanwar Ali:

Changes are underway in UK immigration enforcement, with the UK Home Office recently declaring that fines for employers and landlords who employ or rent to illegal immigrants are set to more than triple. The announcement, which has sparked concern among industry figures and legal experts, will see fines rocket from £15,000 to £45,000 per illegal worker for a first offence, and up to £60,000 for repeat offences. As we delve into the implications of these changes, we'll examine whether these new penalties are proportionate, effective, or simply politically motivated.

This action against employers, landlords, and other recent actions against immigration lawyers is also somewhat hypocritical. Government officials, lawyers acting on behalf of the Government, etc commit very serious criminal offences at times. However, it is extremely rare for anything to be done about this. There is one law for the Government and those working with or authorised by the Government, and another law for the public.

1. Understanding the Change

1.1 The Announcement

The announcement, made on August 7th, 2023, by the UK Home Office, is part of the government's broader strategy to deter illegal immigration and reduce the number of illegal workers in the UK. The new penalties, set to be enacted at the start of 2024, represent the largest shake-up of civil penalties since 2014.

1.2 The Impact

Between 2018 and the announcement, almost 5,000 civil penalties were issued to employers, totalling £88.4m. Landlords, meanwhile, were hit with over 320 civil penalties worth a total of £215,500. With the fines set to triple, these numbers are likely to rise dramatically, putting a significant financial burden on employers and landlords.

2. The Reaction

The announcement has been met with significant backlash, with many arguing that the fines are disproportionate and could have far-reaching consequences, driving many businesses to bankruptcy and even leading to potential injustices.

2.1 Unintended Consequences

Some critics have suggested that the new fines might inadvertently penalise employers acting in good faith, who simply struggle to navigate the complex and ever-changing immigration law requirements.

2.2 Political Motivation

Others have accused the government of using the issue of illegal working as a political tool, implementing harsh measures that sound tough but may be counterproductive in reality.

3. Illegal Working: A Closer Look

3.1 What is Illegal Working?

Illegal working involves an individual without the necessary permission or visa working in the UK. This could be a person who has entered the country illegally, overstayed their visa, or violated the terms of their visa.

3.2 The Risks of Illegal Working

The Government says that illegal working not only undermines the UK economy by avoiding taxes, but it also puts vulnerable individuals at risk of exploitation and cheats legal job seekers out of employment opportunities.

4. The Current System

4.1 Current Penalties

Under the current system, employers can be fined up to £20,000 per illegal worker, a penalty that will triple to £60,000 under the new rules.

4.2 Additional Sanctions

In addition to these fines, employers can face criminal charges if they knowingly employ an illegal worker. Such criminal offences can lead to up to five years' imprisonment and/or an unlimited fine.

5. Navigating the System

5.1 Employer Responsibilities

Employers are responsible for carrying out right to work checks to ensure the legality of their workforce. This can be done via the Home Office's online checking system or through a manual check of original documentation.

5.2 Sponsor Licences

Many employers in the UK rely on their sponsor licences to recruit skilled workers from overseas. Keeping up to date with changes in immigration law and maintaining compliance with the Points-Based Immigration System is crucial to retain this licence.

6. The New Penalties: An In-Depth Analysis

6.1 The Rationale Behind the Change

The government's claims that the increase in fines will deter illegal working and reduce the number of illegal immigrants in the UK. By introducing higher penalties, the government hopes to discourage employers and landlords from engaging in illegal practices.

6.2 The Potential Impact

However, the impact of these changes could be far-reaching. With the potential for fines to reach tens of thousands of pounds per illegal worker, many businesses could face bankruptcy.

7. The Future of Immigration Enforcement

7.1 Upcoming Consultation

Later in 2023, the Home Office is set to launch a consultation on possible measures to strengthen action against businesses employing illegal workers. This could result in even stricter controls and penalties.

7.2 Taskforce on Immigration Enforcement

The government has also introduced a cross-government ministerial Taskforce on Immigration Enforcement, aiming to ensure only those eligible can work, receive benefits, or access public services.

8. Mitigating the Risks

8.1 Right to Work Checks

Employers can protect themselves from liability for an illegal working civil penalty by conducting right to work checks in line with Home Office guidance.

8.2 Training and Audits

Implementing regular internal and/or external audits of right to work check documentation, providing training to staff involved in these checks, and seeking specialist immigration and/or employment law advice can all help minimise the risk of civil penalties.

9. The Bigger Picture

9.1 Skills Shortages

With ongoing skills shortages in the UK labour market, many businesses rely heavily on their sponsor licences and the recruitment of foreign workers. These new fines could therefore have a significant impact on industries already struggling with recruitment.

9.2 The Role of Immigration in the UK Economy

While the government's aim of cracking down on illegal working is understandable, it's also important to remember the vital role of legal immigration in the UK economy. Skilled foreign workers fill gaps in the labour market, contribute to the economy, and enrich the UK's cultural landscape.

10. Conclusion

The government's decision to triple fines for employers of illegal workers is certainly a significant change, and one that has generated much debate. These new fines will place a heavy burden on employers and could potentially lead to unintended injustices.

If at the same time, no action is taken against Government officials and lawyers working for the Government and regulators, who may have committed criminal offences, then this is both hypocritical and unacceptable behaviour.

How Workpermit.com Can Help with Sponsor Licences

If you need help with employing Skilled Workers and help to apply for a Sponsor Licence, including complying with your Sponsor Licence obligations, Workpermit.com can help.

For more information and advice, please contact us at 0344 991 9222 or at london@workpermit.com(link sends e-mail)