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The high cost to business of employing illegal workers

THE ISSUE

From 29 February 2008 businesses who fail to check their employees’ right to work in the United Kingdom  will face increased penalties and a new criminal offence

THE Consequences

These measures include:

  • fines of up to £10,000 per illegal worker for businesses which employ illegal migrant workers with penalty levels assessed by the extent of non-compliant behaviour
  • a criminal offence for businesses who knowingly use illegal migrant labour punishable by a maximum two year prison sentence and/or an unlimited fine
  • offences by corporate bodies committed with the consent or connivance of a director, manager, secretary or partner resulting in a conviction, fine or imprisonment for that individual
  • an ongoing duty to check the continued entitlement to work in the UK of migrant workers with limited immigration status; but
  • a statutory shield against a fine if the business has made the prescribed document checks

THE Solution

Businesses must have systems to check all prospective employees’ right  to work in the UK.

  • When making these checks, businesses must avoid discriminatory recruitment practices and treat all job applicants alike
  • Consult the Government Codes of Practice on (1) Civil Penalties for Employers and (2) Guidance for Employers on the Avoidance of Unlawful Discrimination in Employment Practice While Seeking to Prevent Illegal Working and the Government’s Summary Guidance for Employers
  • Businesses who acquire staff as a result of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) must also make the required checks for their new workforce’s entitlement to work in the United Kingdom within 28 days of the transfer

    Information in this e-alert is a guide only. We recommend that you seek professional advice before taking or refraining from any action. No liability accepted by the firm for any action taken or not taken as a result of this publication.