Right-to-Work Fines: The £60,000 Penalty Explained (2026)

The maximum civil penalty for employing an illegal worker in the UK is £60,000 per worker, increased from £20,000 in January 2024. Conducting and recording a compliant right-to-work check before employment starts — and before any time-limited permission expires — gives you a full statutory excuse that completely eliminates this liability.

What is the illegal working civil penalty?

Under the Immigration, Asylum and Nationality Act 2006 and subsequent amendments, UK employers are liable for a civil penalty if they employ a person who does not have the right to work in the UK.

The penalty is imposed by the Home Office and is enforced by Immigration Compliance and Enforcement (ICE) teams. It is a civil matter — not a criminal prosecution — but it is still legally enforceable, reported to credit reference agencies, and published publicly.

Penalty amounts from January 2024

| Offence | Maximum penalty | |---|---| | First illegal working offence | £45,000 per worker | | Repeat offence (within 3 years) | £60,000 per worker | | Previous penalty in last 3 years | £60,000 per worker |

Prior to 13 January 2024, the maximum penalty was £20,000. It was tripled as part of the government's strengthened enforcement against illegal working.

What triggers the penalty?

You become liable for a civil penalty if all three of the following apply:

1. You employed the person after 29 February 1996
2. The person does not have the right to work in the UK (or their right to work has expired)
3. You did not conduct a compliant right-to-work check before — or at — the start of employment

The penalty applies per worker. If an inspection uncovers three workers without valid checks, the maximum exposure is three separate penalties totalling up to £180,000.

What is a statutory excuse?

A statutory excuse is a complete defence against the civil penalty. If you have a statutory excuse, the Home Office cannot impose a fine — regardless of the worker's actual immigration status.

You have a statutory excuse if you:

1. Conducted a right-to-work check before the worker started employment
2. Checked a document or online status from the Home Office's approved list
3. Kept a copy of the check evidence (document copy or screenshot of the online result)
4. Conducted the check correctly — verified that the document appeared genuine, related to the person, and permitted the type of work being offered

If all four conditions are met, the statutory excuse stands even if the document later turned out to be false — as long as it appeared genuine to a reasonable observer.

Follow-up checks and the statutory excuse

For workers with a time-limited right to work (a visa, pre-settled status, or a BRP with an expiry date), the statutory excuse from the initial check expires when their permission expires.

This means you must conduct a follow-up right-to-work check before the expiry date to maintain your statutory excuse. If the expiry passes without a new check, you lose your defence for that worker — even if the initial check was perfect.

How the penalty is calculated

The Home Office uses a sliding scale when deciding the actual penalty amount. The penalty can be reduced from the maximum based on:

| Mitigating factor | Reduction | |---|---| | You reported the worker to the Home Office yourself | Up to 30% | | You are registered with the Gangmasters and Labour Abuse Authority (GLAA) | Up to 10% | | You cooperated fully with the investigation | Up to 10% |

The penalty can be increased if:

• You have previous illegal working penalties within the last three years
• There is evidence you knew the worker did not have the right to work

What happens during an illegal working investigation?

The process typically looks like this:

1. Trigger — an ICE visit, tip-off, or referral from another agency (HMRC, local authority, police)
2. Inspection — ICE officers attend your premises and request right-to-work records for all employees
3. Evidence review — officers check whether a compliant right-to-work check was conducted and documented for every worker
4. Penalty notice — if violations are found, the Home Office issues an Illegal Working Civil Penalty Notice
5. Objection period — you have 28 days to object to the penalty, pay at the reduced rate (30% if paid within 21 days), or request a review
6. Enforcement — if unpaid, the penalty is enforced as a county court debt

The most common mistakes that remove the statutory excuse

| Mistake | What goes wrong | |---|---| | No check conducted | No statutory excuse exists — full penalty applies | | Check done but not recorded | No evidence of the check — treated as no check | | Document copy not kept | Statutory excuse cannot be demonstrated | | Accepted an EU passport post-April 2022 | Not a valid check for EU nationals — must use share code service | | Missed a follow-up check | Statutory excuse expired — treated as if no check done | | Check done after employment started | No statutory excuse for the period before the check |

Criminal liability — when it goes beyond a fine

In serious cases, employing illegal workers can also result in criminal prosecution under section 21 of the Immigration, Asylum and Nationality Act 2006. Criminal liability arises when the employer knew or had reasonable cause to believe that a worker did not have the right to work.

Criminal conviction can result in:

• An unlimited fine
• Up to 5 years' imprisonment
• Referral to the Gangmasters and Labour Abuse Authority

The civil penalty is the standard route for administrative failures. Criminal prosecution is reserved for deliberate exploitation.

Frequently asked questions

Is the fine per worker or per business? Per worker. If three workers are found without valid right-to-work checks in a single inspection, the maximum exposure is three separate penalties — up to £60,000 each.

Can I appeal the penalty? Yes. You have 28 days from the penalty notice to object. You can object on the grounds that you have a statutory excuse, the penalty is too high, or the Home Office made an error. You can also request a review.

Does the penalty apply to contractors and agency workers? If a worker is supplied by a labour agency, the agency is responsible for conducting the right-to-work check. However, if you knew or had reason to believe the agency had not conducted a check, you may still be liable.

How do I know if I have a statutory excuse? You have a statutory excuse if you can produce a copy of a completed right-to-work check conducted before employment started, or before the worker's previous permission expired, that meets the Home Office's requirements.

KornerIQ creates and stores a timestamped record of every right-to-work check — so if the Home Office visits, you can produce a complete audit trail in seconds. Automatic alerts before every expiry date ensure follow-up checks are never missed, protecting your statutory excuse for every worker on your payroll.