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UK penalties for employing illegal workers to significantly increase

15 January 2024

Increases in the Immigration Health Surcharge and maximum civil penalty for employing an illegal worker were anticipated for January 2024 but now will be deferred into February 2024 or later, according to Lewis Silkin. The timing of the changes depends on when implementing regulations are finalised by Parliament.

Illegal working civil penalties arise where a UK employer unknowingly employs a person who does not have the required permission to perform the job they are undertaking. From early 2024 the overall maximum illegal working civil penalty will increase from £20,000 to £60,000 per illegal worker identified. In addition, the starting point for a first breach will be increased from £15,000 to £45,000.

An employer can obtain a statutory excuse against liability for an illegal working civil penalty by carrying out compliant right to work checks in line with Home Office guidance. Complying with the guidance is sometimes not straightforward and Lewis Silkin say their clients often ask them for advice on how to correctly interpret the guidance.

On 4 December 2023, the UK Government announced a ‘five-point plan’ to lower net migration, following on from recent high net migration figures. Many of the reforms restrict use of the Skilled Worker route by raising the general salary threshold from £26,200 to £38,700 (with exemptions for Health and Care visa applicants and education workers on national pay scales) from April 2024. The Government anticipates this plan will build on previously announced restrictions on Student dependants as well as application fee and immigration health surcharge rises. The overall predicted fall in net migration due to these changes is estimated at 300,000 people for the coming year, though Government immigration and migration figures have proven woefully inaccurate in the past.

At the time of the announcement Neil Carberry, Chief Executive of the Recruitment and Employment Confederation, said that “these changes will send the wrong signal around the world. They are wholly disproportionate, given that immigration for work in the private sector is such a small part of total immigration."