United Kingdom: Increased Illegal Worker Fines in Effect from February 13, 2024

• Increased fines for businesses. From February 13, 2024, 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. From February 13, 2024, landlords who host migrants without the right to rent in the United Kingdom will face significantly increased fines. First-time offenders will be fined up to GBP 5,000 per lodger (a person who has a right to stay in, but not exclusively occupy, a living space) and up to GBP 10,000 per occupier (a broader legal term that includes tenants who have a right to exclusively occupy a living space). This is 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).

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.

• Deterring irregular migration. 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 had increased, with employer audits and inspections – including those targeting illegal work – at their highest levels since 2019.
• Immigration Health Surcharge fee increases. Alongside these fine increases, the United Kingdom recently confirmed that scheduled Immigration Health Surcharge fee increases will go into effect on February 6, 2024. The annual IHS fees for adult applicants will increase to GBP 1,035 per person – a 66 percent increase from the current GBP 624.

The United Kingdom is continuing efforts to deter irregular migration while also increasing the thresholds for legal migration (as it seeks to attract both highly skilled and high-income earning foreign nationals). Salary threshold increases and new dependent entry pathways are scheduled to be rolled out over the course of 2024.