United Kingdom: Illegal Worker Fines to Triple in Early 2024
August 8, 2023
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At a Glance
- According to an August 2023 government statement, starting early 2024 (no exact date was provided), businesses convicted of hiring migrants without the required work permission will be fined up to GBP 45,000 per illegal worker, up from the current maximum of GBP 15,000; and repeat offending businesses will be fined up to GBP 60,000 per illegal worker, up from the current maximum of GBP 20,000.
- This policy change comes amid broader efforts by the UK government to deter irregular migration, and includes increased fines for landlords who host migrants without the right to rent in the United Kingdom.
- UPDATE – November 17, 2023: Following the recent publication of a draft ‘Code of Practice’, these fine increases are expected to come into force on January 22, 2024 at the earliest.
The situation
The United Kingdom is continuing its efforts to deter irregular migration and has confirmed that it will raise fines for employers hiring and landlords hosting migrants who do not hold the correct immigration permissions.
A closer look
According to an August 2023 government statement, the following changes will be made in early 2024 (the government did not provide an exact date):
- Increased fines for businesses. A business which has employed migrants without the required work permission for the first time will be fined up to GBP 45,000 per worker. The current maximum fine for this offence is GBP 15,000. Businesses which repeatedly employ migrants who do not hold the required work permission will be fined up to GBP 60,000 per worker. The current fine for this offence is up to GBP 20,000.
- Increased fines for landlords. The United Kingdom government will also increase fines for landlords who host migrants without the right to rent in the United Kingdom. First-time offenders will be fined up to GBP 5,000 per lodger and up to GBP 10,000 per occupier (up from the current GBP 80 per lodger and GBP 1,000 per occupier). Repeat offenders will be fined up to GBP 10,000 per lodger and up to GBP 20,000 per occupier (up from the current GBP 500 per lodger and GBP 3,000 per occupier).
- UPDATE – November 17, 2023: Commencement date. Following the recent publication of a draft ‘Code of Practice’, these fine increases are expected to come into force on January 22, 2024 at the earliest.
Impact
Amid increased enforcement and fines, employers should ensure their ‘right-to-work’ review processes and internal auditing mechanisms are sufficient to avoid employing individuals who lack the right to work in the United Kingdom.
Background
This policy change comes amid broader efforts by the UK government to deter irregular migration. The government stated in August 2023 that its enforcement activity against illegal working has increased, with employer audits and inspections – including those targeting illegal work – at their highest levels since 2019 (up 50% on 2022).
Looking ahead
This announcement will likely lead to updates in Home Office guidance and codes of practice, though the government has not announced the next legislative steps or plans.
In late 2023, the UK Home Office intends to run public consultations regarding options to improve the monitoring and enforcement of licensed businesses that employ illegal workers. The results of the consultation could lead to changes in guidance or more enforcement efforts. We will report on related developments.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
