United Kingdom – Tripling of Fines for Illegal Working and Renting Lodgings

At present, employers that employ overseas workers without the right to work in the United Kingdom can face fines of up to £15,000 per illegal worker where this is the employer’s first offence.  Where the employer is a repeat offender, the maximum fine is £20,000 per illegal worker.  From 2024, these fines will rise to a maximum of £45,000 per illegal worker for the first breach, while repeated breaches will see fines of up to £60,000 per illegal worker.

For landlords found to be hosting a lodger without lawful immigration status or renting their properties to those who do not hold the right to reside in the United Kingdom, the fines will increase from £80 per lodger or £1,000 per occupier to £5,000 per lodger or £10,000 per occupier for the first offence.  Repeat offenders will be fined up to £10,000 per lodger and £20,000 per occupier, up from the current rates of £500 and £3,000 respectively.

Before the new fines come into effect at the start of 2024, the Home Office will launch a consultation on actions that could be strengthened to deter licensed businesses from employing workers without lawful immigration status.  Given that government immigration enforcement activity has been stepped up with visits, including those targeting illegal working, now at their highest levels since 2019, employers should be reviewing their compliance processes to establish they are sufficiently robust to withstand Home Office scrutiny.

This would include for example: ascertaining that those with responsibility for carrying out right-to-work checks are sufficiently upskilled and trained to understand their obligations; robust right-to-work checking systems are in place that allow for correct checks before employment begins, and where required, follow-up checks; and investing in training and legal counsel support to evaluate stakeholder awareness and understanding of their responsibilities.