Civil Penalties & Illegal Working
Civil Penalties for Illegal Working
Employers can face a civil penalty for each illegal worker unless they hold a statutory excuse.
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What the issue is
If a person is found working illegally and the employer does not have a statutory excuse, the Home Office may issue a civil penalty per illegal worker. Maximum amounts are set by regulation and were significantly increased in 2024; check the current code of practice.
Why it matters
Penalties can multiply across workers, and a penalty can affect a sponsor licence and the business's reputation.
Challenging a penalty
There are procedures for objecting to and appealing a penalty, with strict time limits. Mitigating factors set out in the code of practice may reduce the amount.
Common failures
- No evidence of a check at all.
- Missing the objection deadline.
Evidence to keep
Examples to consider where relevant — not a complete or mandatory list.
- Right to work records for every worker.
Practical preventative steps
- Seek advice immediately on receiving a referral notice.
Official rules and guidance
Rules and guidance change. Check the current official sources before relying on this information.
This is general legal information for organisations, not advice on your circumstances. Duties depend on your business, workers and the rules and guidance in force at the relevant time. No outcome is guaranteed.
Andrew Williams Solicitors provides regulated legal advice, legal review, representation and solicitor-led compliance support. Compliance monitoring and workflow technology (such as ICMS and ComplianceWatch) is provided separately by Ibiab Systems and is not legal advice.
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When solicitor advice may be appropriate
Speak to Andrew Williams Solicitors about your organisation's position, a Home Office visit, a penalty notice or a licence concern. Scope and fees are agreed in writing before substantive work begins.