Challenging a Civil Penalty for an Illegal Worker

Employers found to be employing individuals without lawful immigration status may be in breach of the Right to Work Scheme. Where a breach is suspected, the Home Office may issue a Civil Penalty Referral Notice, signalling that liability is under consideration. If a penalty is imposed, the employer will receive a Civil Penalty Notice.

Employers are given the opportunity to respond and present evidence of a statutory excuse – typically by demonstrating that a compliant right to work check was carried out. A response submitted within 10 days is treated as active cooperation and may result in a reduced penalty.

Where a right to work check has been properly conducted, the employer will have a statutory excuse and no liability will arise. If the Home Office determines that no statutory excuse exists, it will assess the appropriate level of penalty based on the circumstances of the breach.

Employers found to be in breach of the Right to Work Scheme may face substantial financial penalties. The level of penalty depends on whether the employer has committed a similar breach within the previous 3 years:

• First-time breaches – up to £45,000 per illegal worker.
• Repeat breaches – up to £60,000 per illegal worker.

The final penalty amount is determined by the Home Office based on the employer’s history of compliance and the presence – or absence – of a valid statutory excuse.

The final penalty amount imposed by the Home Office will depend on whether the employer qualifies for reductions by demonstrating relevant mitigating factors. These factors vary depending on whether the breach is a first-time or repeat offence and may include:

• Prior reporting of suspected illegal workers to the Home Office, as evidenced by a Unique Reference Number.
• Active cooperation with the Home Office during the investigation process.
• Evidence of effective right to work checking procedures.

Where mitigating factors are accepted, the penalty may be reduced by £5,000 per illegal worker.

The Faster Payment Option (FPO) offers a 30% reduction if the penalty is paid in full within 21 days. This option is available only to landlords receiving a penalty for the first time.

Objecting to the penalty

Employers served with a Civil Penalty Notice have 28 days from the due date specified in the notice to submit a written objection. Objections must be supported by evidence and must rely on one or more of the following grounds:

• The employer is not liable for the penalty (e.g. they were incorrectly identified as the employer).
• The employer has a statutory excuse, having conducted a compliant right to work check.
• The penalty amount is excessive, either due to a miscalculation or because mitigating factors were not properly considered.

Where an objection is submitted within the deadline, the employer remains eligible for the Faster Payment Option (FPO), which offers a 30% reduction if the penalty is paid in full within 21 days. This option is available only to landlords receiving a penalty for the first time.

The Home Office will issue an Objection Outcome Notice confirming whether the penalty will be cancelled, reduced, or upheld.

Appealing against the penalty

If the penalty is upheld following an objection, the employer may appeal to the County Court. Appeals must be submitted within 28 days of the date on the Objection Outcome Notice or any revised Civil Penalty Notice.

Appeals may only be made on the same grounds available for objection.

Employers who are unable to pay a civil penalty in full may request permission from the Home Office to settle the amount in instalments over an agreed period – typically up to 24 months.

To support the request, employers must provide clear reasons for their inability to make a single payment, for example submitting evidence demonstrating financial hardship or other relevant circumstances.

Our Immigration team is experienced in advising organisations facing civil penalties issued by the Home Office. We prepare robust representations, assess statutory defences, and guide clients through complex enforcement processes with clarity and precision.

Whether you are seeking to challenge a penalty, mitigate its impact, or ensure future compliance, we deliver tailored, outcome-focused support that protects your interests and helps you move forward with confidence.