On 7 August 2023 the UK Government announced a sharp increase in fines for companies who are employing illegal migrants and landlords who are renting their properties to them. The new fines will be applied to breaches discovered from the start of 2024 onwards.
Employers will be fined a civil penalty of up to £45,000 for a first breach of the UK's illegal working laws (up from £15,000) and up to £60,000 for repeat breaches (up from £20,000).
Likewise, landlords who were previously charged a fine of £80 for renting to an illegal lodger and £1,000 for renting to an illegal occupier are now going to be fined up to £5,000 and £10,000 respectively for a first breach. The fines for repeat breaches will increase from £500 per lodger to £10,000 and from £3,000 per occupier to £20,000.
The UK authorities hope that this will assist them in reducing illegal migration into the UK. Immigration enforcement activity has significantly increased in the last few months and is now back to pre-COVID levels. The imposition of penalties has raised more than £88.4 million for the UK authorities since 2018, which is a result of around 5,000 civil penalties given to businesses that employ undocumented workers. Landlords have been fined over £215,000 via 320 civil penalties in the same period.
It is important for all employers, especially those holding UK sponsor licences, to ensure they are fully up to date with all relevant right to work legislation and check requirements. Getting this wrong can, apart from the increased fines, lead to the loss of the sponsor licence and severe reputational damage (the Home Office operates a 'name and shame' regime).
Originally published 29 August 2023
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