Why Good Employers Have Nothing To Worry About Following Increase In Illegal Employment Fines

By Karen Morovic, Employment Partner at Knights (www.knightsplc.com)

Businesses will now be expected to pay up to £60,000 in fines should they hire someone illegally.

The Government have increased the total enforced payment in an attempt to more effectively punish those employers who take advantage of current rules.

It follows proposed changes to UK immigration law. In July this year, the visa route for skilled workers was impacted by a change which now requires overseas applicants to have a skill level equivalent to that of a UK university graduate to be eligible for sponsorship. This increased from A Level equivalent.

Salary thresholds were also increased, making it more expensive for employers with social care visas also now closed to new applications from overseas.

Employment Partner at Knights, Karen Morovic, said, with more changes to come, the landscape for employers looking to hire from overseas will become more challenging:
“The right to work check is a straightforward process for businesses to undertake especially if the person they’re looking to hire does not have a time limited permission to live and work in the UK. For example, that person is already a British citizen and has a British passport. The right to work check can be done through a manual document check, using the services of an Identity Service Provider or by using the Home Office online right to work checking service.

“Follow up checks need to be carried out by the employer where somebody has a temporary or time limited right to work in the UK as you have to ensure that right to work is confirmed whilst putting processes in place to follow up ahead of a visa running out. It’s vitally important to carry out these checks as an employer cannot employ or continue to employ someone who no longer has the right to work in the UK.

“This is a hot topic in the political landscape and the increase in fines, to a maximum of £60,000 per illegal worker, reflects that. The fines are not the only risk, with business owners at risk of criminal action should they knowingly employ somebody without having undertaken the appropriate checks.

“It is important employers have organised systems and checks in place to avoid being caught out with these severe penalties. The Government is coming down harder on those who don’t follow the correct processes, on employers who are failing to do what they should, and will continue to make it increasingly difficult for those constantly skirting over the requirements to employ illegal workers.

“My advice for businesses would always be to err on the side of caution by making sure the right paperwork is in place and you’ve got the evidence to show that you’ve carried out the correct checks and asked the right questions.

“The increase in fines could well have an adverse impact on retail and hospitality sectors in particular – as there are a higher volume of casual workers needed at peak times. This means the burden on the employer to keep on top of the checks is higher as there is a larger influx of temporary workers – particularly ahead of Christmas the busy seasonal periods.

“You’ve got to be proactive. You’ve got to be on top of who you’ve got in terms of permanent right to work in the UK, temporary right to work in the UK and also, for those with many hundreds of employees, logistically, it is going to be important that you have the support in place to help with that.

“Being cautious is good practice ahead of the impending Employment Rights Bill that is due to gain Royal Assent very soon. The incoming changes to the legislation will make it a challenge for those who use a lot of casual workers over a temporary basis and will look to encourage employers to be organised and know exactly who is coming through their doors.

“The final key message is that good employers have nothing to worry about with this – as long as they’ve got procedures in place and take the necessary legal advice if there’s any ambiguity. It’s those employers who take advantage that will be hit most by this.”