HR advice: Penalties for employing illegal workers increased

2016 saw a raft of director disqualifications as a result of businesses illegally employing workers who are not eligible to work within the UK.

By Christine Hart, employment solicitor, KBL Solicitors.

In September, a director of Weymouth Tandoori was disqualified from acting as a director of a company or from being involved in the promotion, formation or management of a company for six years. This sanction, along with a hefty fine, was imposed as a result of the business employing two illegal workers.

Similarly, the director of Eurolinen UK was disqualified from acting as a director for a period of six years and ordered to pay a civil penalty of £15,000. This was imposed as a result of the business employing three illegal workers.

The Immigration Act 2016 received Royal Assent on 12 May 2016, and it is currently possible to impose both criminal and civil sanctions on employers.

The current maximum civil penalty that can be imposed is £20,000 for each individual who does not have the right to work in the UK. This will usually be coupled with a disqualification period as in the examples above.

As of July 2016, in circumstances where an employer has knowingly employed an illegal worker, the maximum criminal sanction is imprisonment for up to five years. Employers are able to effectively excuse themselves from both civil and criminal prosecution if a three step check process is followed:-

Obtain the employee’s original identification documents as prescribed in the Home Office guidance Check in the presence of the employee that the documents are original and valid Copy and keep the documents securely and diarise the date of the check and date for follow-up checks It is recommended that the above checks are carried out every 12 months for employees who do not have a permanent right to work in the UK. Given the significant implications of failing to follow out the correct identity checks, KBL Solicitors recommends that employers seek legal advice in circumstances where an employer is at all worried about the status of an employee.