The UK government has significantly intensified its crackdown on illegal working, with a sharp rise in enforcement actions and immigration civil penalties issued to employers. As of mid-2025, the message is clear: businesses must take immigration compliance seriously, or face severe consequences.

What Are Immigration Civil Penalties?

A Civil Penalty issued by UK Visas and Immigration (UKVI) is a financial fine imposed on employers who are found to have illegally employed individuals who do not have the right to work in the UK. It is part of the UK government’s enforcement strategy to deter illegal working and ensure compliance with immigration laws.

These penalties are part of the government’s broader strategy to deter illegal migration and protect vulnerable workers from exploitation.

Under Section 15 of the Immigration, Asylum and Nationality Act 2006, a civil penalty is a non-criminal sanction that can be issued when an employer:

  • Employs someone who does not have permission to work in the UK, and
  • Fails to carry out proper Right to Work checks before employment begins

Penalty Amounts:

  • £45,000 per illegal worker for a first offence
  • £60,000 per illegal worker for repeat offences within 3 years

The Immigration Civil Penalties Process

  1. Referral Notice: If the Home Office suspects illegal working, they may issue a referral notice indicating that an investigation is underway.
  2. Civil Penalty Notice: If the employer is found liable, they receive a formal notice detailing:
    • The amount of the fine
    • The reasons for the penalty
    • How to pay or object
    • A 28-day deadline to respond
  3. Appeal or Objection: Employers can object to the penalty if they believe:
    • They are not liable
    • They have a statutory excuse (i.e., they conducted proper Right to Work checks)
    • The penalty amount is incorrect

These penalties apply if an employer knew or had reasonable cause to believe that a worker did not have the right to work in the UK.

There has been a surge in enforcement which reflects the Labour government’s tougher stance on illegal employment, as part of its broader immigration reform agenda.

Right to Work Checks

Employers must ensure that they conduct proper right to work checks before employment begins. They should:

  1. Obtain original documents from the Home Office’s list.
  2. Check the documents’ validity in the presence of the employee.
  3. Copy and retain the documents securely.

Alternatively, employers can use the Home Office online checking service for workers with digital immigration status to check their right to work.

Failure to follow these steps removes the statutory excuse and exposes the employer to full penalties.

Implications for Employers

The financial burden of civil penalties can be devastating, especially for small and medium-sized enterprises. A single undocumented worker could cost a business up to £60,000.

The Home Office now publicly names businesses that receive civil penalties. This can lead to lasting reputational harm, loss of customer trust, and damage to brand image.

Enforcement visits often involve raids, interviews, and document seizures, which can disrupt day-to-day operations. Businesses in sectors like hospitality, construction, and retail are particularly vulnerable.

For employers who sponsor foreign workers, receiving a civil penalty can result in the revocation or suspension of their sponsor licence—jeopardising their ability to hire skilled international talent in the future

In serious cases, employers may face criminal prosecution, with potential prison sentences of up to five years for knowingly employing illegal workers

Mitigating the Risk

Employers can reduce their risk of civil penalties by:

  • Conducting thorough Right to Work checks before employment begins
  • Keeping accurate records of all checks
  • Training HR staff on immigration compliance
  • Reporting suspected illegal workers to the Home Office
  • Cooperating fully during any investigations

The Home Office may reduce penalties if employers demonstrate proactive compliance, such as having robust document-checking systems or voluntarily reporting concerns

How we can help?

Our experienced immigration solicitors at Fisher Jones Greenwood LLP can assist with businesses to ensure that their compliance is up to date. We can offer mock Home Office audits to ensure all records held relating to their employees are compliant. Please contact the team on 08082 587 319 or fill out our online contact form.