2024 UK Employer Civil Penalty Update – A Shocking 200% Fine Increase

The cost of non-compliance with immigration laws is about to take a steep hike. On the back of an announcement from the Home Secretary last August, the government is gearing up to enforce a new set of civil penalties for businesses found employing individuals without the right to work in the UK. This shift, signalling the most substantial increase in fines over the past decade, underscores the importance of diligent employment practices. In this blog post, we’ll explore the important changes in UK immigration law and provide practical advice to help you comply.

A Sea Change in Civil Penalties 

The UK government, in a bid to clamp down on illegal working, has announced a significant overhaul of the civil penalties regime. This change marks the first major escalation in fines for employing illegal workers since 2014, catapulting the potential financial repercussions for businesses into a new stratosphere.

Previously, a first-time offence could cost an employer up to £15,000 per illegal worker. Repeat offenders faced a £20,000 fine per individual. However, in a bold move announced by the Home Secretary on 07 August 2023, these amounts are set to skyrocket. Come 13 February 2024, first-time offenders will face a maximum penalty of £45,000 for each illegal worker employed, while repeat offenders will see this figure jump to £60,000.

The Countdown Begins

The legislative vehicle for these changes, The Immigration (Employment of Adults Subject to Immigration Control) (Maximum Penalty) (Amendment) Order 2024, was laid down on 23 January 2024. With its provisions coming into effect 21 days post-announcement, the new regime takes hold on 13 February 2024. Alongside this, a revamped Code of Practice on preventing illegal working will also be introduced, replacing the previous version issued in March 2022.

Right to Work Checks

The forthcoming Code of Practice will govern right-to-work checks from 13 February 2024 onwards, including any necessary follow-up checks to maintain a statutory excuse against liability for civil penalties. It’s crucial for employers to note that the new Code applies retroactively to any checks conducted after its implementation date, regardless of the version of the Code in force at the time of the initial check.

This nuanced approach ensures that while past checks are respected, future compliance demands adherence to the updated standards. Employers must understand the different versions of the Code and when they apply to follow the rules properly.

The Home Office’s Approach

Should the Home Office suspect an employer of illegal employment practices, a series of steps will ensue, starting with a Civil Penalty Referral Notice. Employers will then have the opportunity to present evidence of a statutory excuse via an Information Request, potentially mitigating the level of the penalty.

Subsequently, a Decision will be made, potentially culminating in a Civil Penalty Notice outlining the reasons for liability, the penalty amount, and payment options. Alternatively, a Warning Notice may be issued as a less severe measure, or a No Action Notice if no further action is deemed necessary.

Payment and Objections: What Employers Need to Know

Accepting the penalty triggers the payment process, which includes a Faster Payment Option (FPO) for a reduced amount if paid within 21 days. Employers can also negotiate instalment plans for payment, recognising the potentially significant financial burden these penalties impose.

However, employers have the right to object to a Civil Penalty Notice within 28 days, outlining their grounds for objection. The outcome of this process may result in the penalty being upheld, reduced, or cancelled, with further appeal options available through the County Court.

Your Compliance Compass 

With these increased fines and stringent enforcement, the importance of conducting thorough right-to-work checks cannot be overstated, compliance is key. X Law is here to help your business through these changes. Our team of immigration experts can offer personalised advice and assistance, making sure your employment practices are compliant, and in line with the latest legal requirements.

For businesses throughout the UK, these changes emphasise the need to strengthen employment verification procedures and verify that all workers have the legal right to work. The heightened penalties highlight the government’s dedication to tackling illegal employment and reinforce the crucial significance of compliance in this field.

If you’re worried about how these changes might impact your business or need expert advice on staying compliant, don’t hesitate to get in touch with us at X Law. We’re equipped with the know-how and proactive approach to protect your business from potential penalties and ensure you’re ready for these new rules.

Remember, following the rules is essential. Let X Law lead you through these changes, not just meeting but surpassing legal expectations. For more details or assistance;