Civil Penalties for employers and landlords to more than triple from 2024

The Home Secretary announced on 7 August 2023 that fines for employers and landlords who allow illegal migrants to work for them or rent their properties are to be more than tripled, marking the biggest transformation of Civil Penalties since 2014. The Home Office will also consult on options to strengthen action against licensed businesses who are recruiting illegal workers later this year.

The changes which will be implemented from the start of 2024 are as follows:

	Current Civil Penalties	New Civil Penalties from 2024
Employers	First breach – £15,000 per worker	First breach – up to £45,000 per worker
	Repeat breaches – £20,000 per worker	Repeat breaches – up to £60,000 per worker
Landlords – lodgers	First breach – £80 per lodger	First breach – up to £5,000 per lodger
	Repeat breaches – £500 per lodger	Repeat breaches – up to £10,000 per lodger
Landlords – occupiers	First breach – £1,000 per occupier	First breach – up to £10,000 per occupier
	Repeat breaches – £3,000 per occupier	Repeat breaches – up to £20,000 per occupier

The fines will be increased in the hopes of deterring employers and landlords from engaging in malpractices, and to further dissuade individuals from attempting to come to the UK illegally.

According to the Government, since 2018 almost 5,000 Civil Penalties with a total value of £88.4m have been issued to employers and over 320 penalties with a total value of £215,500 have been issued to landlords.

Employers and landlords must therefore be sure to conduct the appropriate checks on individuals to avoid incurring Civil Penalties in the event a worker is found to be illegal.

How can employers and landlords conduct the appropriate checks?

Employers can use one of three ways to conduct right to work checks:

1. A manual, in-person right to work check – this can be carried out on employees of all nationalities (where the original document falls under List A or List B). The employer is to inspect an original document specified in the guidance and certify that a physical inspection of the document has taken place.
2. A right to work check using IDVT via the services of an IDSP – this can only be used on British and Irish nationals and was first enabled on 6 April 2022. IDSPs complete the digital identity verification element for such nationals who hold a valid passport on behalf of employers.
3. A Home Office online right to work checking service – this can only be used on non-British or Irish citizens and is completed via the gov.uk website.

More information on how to carry out right to work checks can be found in our previous blog here. HR professionals or those responsible for on-boarding are strongly encouraged to read the latest guidance document to familiarise themselves with the latest changes.

Landlords can use one of two ways to conduct right to rent checks:

1. A manual, in-person right to work check – this can be carried out on individuals of all nationalities. The landlord is to inspect an original document specified in the guidance and certify that a physical inspection of the document has taken place.
2. A Home Office online right to work checking service – this can only be used on non-British or Irish citizens and is completed via the gov.uk website.

Employers and landlords must continue to comply with right to work and right to rent checks to maintain a statutory excuse to prevent liability for a Civil Penalty.

If you require assistance or further information with right to work checks or general HR on-boarding processes, please do not hesitate to contact our Head of Immigration, Sundeep Rathod.

If you aren’t receiving our legal updates directly to your mailbox, please sign up now