Civil penalties for illegal working are a major risk for UK employers. The Home Office can issue substantial financial penalties where a business employs a person who does not have the right to work in the UK, or who is working in breach of their immigration conditions.
As of June 2026, employers can face penalties of up to £45,000 per illegal worker for a first breach and up to £60,000 per illegal worker for a repeat breach within three years. If your business has received a Civil Penalty Notice, or if you want to reduce the risk of Home Office enforcement, it is important to act quickly and obtain specialist advice.
At Lexvisa, our immigration solicitors advise employers on civil penalties for illegal working, right to work compliance, Home Office investigations and sponsor licence risks.
What Is a Civil Penalty for Illegal Working?
A civil penalty is a financial sanction issued by the Home Office where an employer is found to have employed someone who is not permitted to work in the UK.
The legal framework is set out under section 15 of the Immigration, Asylum and Nationality Act 2006. An employer may be liable if they employ a person who:
- does not have permission to enter or remain in the UK;
- has permission that is invalid or has expired;
- is not allowed to work in the UK; or
- is working in breach of restrictions attached to their immigration permission.
Employers are expected to carry out compliant right to work checks before employment begins and, where required, follow-up checks during employment.
How Much Is the Civil Penalty?
Under the current Home Office code of practice on preventing illegal working, the starting point for a civil penalty is:
- £45,000 per illegal worker for a first breach; and
- £60,000 per illegal worker for a repeat breach within three years.
The final amount may be reduced if the employer can show relevant mitigating factors, such as reporting suspected illegal working, actively cooperating with the Home Office and having effective right to work systems in place.
In some first-breach cases, a Warning Notice may be issued instead of a financial penalty if the employer meets the relevant mitigation criteria.
What Is a Statutory Excuse?
A statutory excuse is a legal defence against liability for a civil penalty. An employer may establish a statutory excuse by carrying out the correct right to work check before employment begins.
There are three main types of prescribed right to work checks:
- a manual document check;
- an online Home Office right to work check using a share code; or
- a digital check using an Identity Service Provider for eligible British and Irish citizens.
The correct method depends on the worker’s nationality and immigration status. Employers must also retain evidence of the check and carry out follow-up checks where the worker has time-limited permission to work.
The Home Office’s right to work checklist and employer right to work guidance explain the prescribed checking process.
What Happens During the Civil Penalty Process?
A civil penalty case often begins after a Home Office compliance visit or enforcement investigation.
The usual process may include:
- a Civil Penalty Referral Notice;
- a request for information or documents;
- a Home Office assessment of liability;
- a Civil Penalty Notice, No Action Notice or Warning Notice; and
- where a penalty is issued, the option to object and potentially appeal.
A Civil Penalty Notice should explain why the Home Office considers the employer liable, the amount of the penalty, how to pay and how to object.
If you receive a notice, deadlines are strict. Employers usually have 28 days to object to a civil penalty. If the objection is unsuccessful, there may be a further right of appeal to the County Court in England and Wales, the Sheriff Court in Scotland, or the relevant court in Northern Ireland.
Can a Civil Penalty Be Cancelled or Reduced?
Yes, in some cases. A civil penalty may be challenged where:
- the business was not the employer;
- the employer had a statutory excuse;
- the Home Office calculated the penalty incorrectly;
- mitigating factors were not properly considered; or
- there are procedural or evidential issues with the decision.
The right approach will depend on the facts, the documents held by the business, the timing and quality of right to work checks and how the Home Office reached its decision.
Lexvisa can review the penalty notice, assess the strength of any objection or appeal and advise on the most effective response.
Why Civil Penalties Are Serious for Employers
A civil penalty can affect much more than cash flow. Consequences may include:
- significant financial liability;
- reputational damage;
- publication of the business’s details by Immigration Enforcement;
- enforcement action if the penalty is not paid;
- impact on directors or business owners;
- sponsor licence suspension or revocation; and
- difficulty obtaining or keeping a sponsor licence in the future.
For sponsor licence holders, illegal working allegations can be particularly serious. The Home Office may treat right to work failures as evidence of wider compliance concerns. Lexvisa also advises employers on sponsor licence compliance, Home Office inspections and sponsor licence suspension or revocation.
How Employers Can Reduce Risk
Employers should have clear right to work systems in place before recruitment begins. This includes training staff, using the correct check for each worker, keeping accurate records, monitoring visa expiry dates and taking advice where a worker’s status is unclear.
A one-off check may not be enough where the worker has time-limited permission. Follow-up checks must be completed before the previous statutory excuse expires.
Businesses that sponsor overseas workers should also ensure their right to work systems align with wider sponsor licence duties.
How Lexvisa Can Help
Lexvisa assists employers with urgent civil penalty cases and wider immigration compliance. Our services include:
- reviewing Civil Penalty Notices;
- preparing objections to the Home Office;
- advising on appeals where appropriate;
- assessing right to work records;
- advising on statutory excuse arguments;
- preparing businesses for Home Office visits;
- supporting sponsor licence holders; and
- providing compliance training and mock audits.
We provide practical advice designed to protect your business, workforce and immigration compliance position.
FAQs
What is the maximum civil penalty for illegal working?
As of June 2026, the civil penalty starting point is £45,000 per illegal worker for a first breach and £60,000 per illegal worker for a repeat breach within three years.
Can I avoid a civil penalty if I carried out right to work checks?
Yes, if the checks were carried out correctly and before employment began. This is known as establishing a statutory excuse.
What is a statutory excuse?
A statutory excuse is a defence against liability for a civil penalty. It is usually established by completing the correct right to work check and retaining evidence of that check.
How long do I have to object to a civil penalty?
Employers usually have 28 days to object to a Civil Penalty Notice. The exact deadline should be stated on the notice.
Can a civil penalty be reduced?
Yes. The Home Office may reduce the penalty if relevant mitigating factors apply, such as active cooperation or prior reporting of suspected illegal working.
Can a civil penalty affect my sponsor licence?
Yes. A civil penalty can affect your ability to obtain or keep a sponsor licence and may trigger wider Home Office compliance action.
What should I do if I receive a Civil Penalty Notice?
You should seek legal advice immediately. The deadlines are strict and the response should be based on the notice, the right to work evidence and any available grounds of challenge.
Contact Lexvisa
If your business has received a civil penalty, is facing a Home Office investigation, or needs advice on right to work compliance, contact Lexvisa for specialist immigration advice. Lexvisa is the immigration law division of DJF Solicitors Group.
Call 02030110276 or complete our online enquiry form to speak with our immigration team.