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Employing illegal workers has legal implications in the UK

ByDave Stopher

Oct 9, 2023
Legal Consequences of Employing Illegal Workers in the UK

Both employers and employees face a difficult challenge in ensuring that companies don’t hire illegal workers. It’s not only important, but also necessary to fully understand the legal ramifications claiming asylum in the UK.

MyVetting.com provides an overview on what can go awry if you do not have a firm grasp of the system.

Who are the illegal workers?

Immigration Law in the UK: What is an Illegal Worker?

“Illegal workers” is a term used in UK immigration law to describe individuals who are not permitted to legally work within the United Kingdom. Included are:

  • Expired Visas – Individuals who enter the UK with valid visas but allow them to expire and do not renew them or extend them are considered illegal workers. A visa that has expired will no longer allow the person to work.
  • Unauthorised Entry. People who enter UK illegally, or as tourists but later seek employment are usually not allowed to do so. This includes individuals that entered the country as tourists or illegally but later sought employment.
  • Failed asylum seekers. Asylum applicants whose claims have been rejected, and they have exhausted their appeal processes, may no longer be allowed to work in UK. If they keep working without a legal permit, they are illegal workers.
  • Overstayers – Individuals who enter the UK on a visa but stay beyond the specified period, or those who came as tourists and stayed as workers, are considered illegal.

Employers may hire illegal workers without knowing it.

Many employers may hire illegal workers without realizing it, due to ignorance or mistakes made in the hiring process. These include:

Document Forgery.: Illegal workers will often provide fake or altered documents to employers that look genuine. It is difficult for employers, therefore, to detect their true immigration status.

Inadequate Verification: Employers may have inadequate systems in place that verify employees’ right-to-work documents. This could lead to an incomplete or incorrect check.

Complex Immigration Rules: Employers may find it difficult to remain informed about the UK immigration laws, with their numerous visa types and ever-changing regulations.

Lack of Training: – Employers and HR personnel might not have received adequate training or information about how to perform a right to work check.

False references:  Illegal workers might provide false employment records or references to hide their immigration situation, making it more difficult for employers and recruiters to identify irregularities.

Why it’s a legal matter?

Employers are legally bound to verify workers’ right to work.

In the United Kingdom employers are legally required to verify that their employees have the right to work. These obligations are set out in different pieces of legislation, like the Immigration, Asylum, and Nationality Act (2006). The main responsibilities of the employer include:

Right to Work checks: All prospective employees must be thoroughly checked for their right to work by employers before any employment begins. These checks consist of verifying the authenticity and valid documents and immigration status of individuals.

Document Retention – Employers have a legal obligation to retain accurate and detailed records for right to work checks, and other documents related to employees. These records should remain on file for as long as the employee is employed and up to two years after leaving.

Employment of illegal workers in the UK can result in violations of both immigration laws and employment laws:

Immigration Law Violations.

Employers that hire people who do not have the right to be employed are in violation of immigration law. Civil penalties, criminal charges, or even imprisonment can be imposed on the employers who hire individuals without the right to work.

Employment Law Violations.

The hiring of illegal workers can also violate employment laws. This is because these workers are often denied rights to employment, including minimum wages, holiday entitlements and workplace protections. Employers who engage in such practices may face legal action and employment tribunal claims.

Impact of Illegal Work on the Economy and Job Market

The impact of illegal employment goes beyond employers and employees. It affects the UK job market and economy.

Unfair Competition – Businesses that hire undocumented workers are at a competitive disadvantage compared to those that follow employment and immigration laws. This can cause a distortion in the job market.

Depressed Wages – The presence of undocumented workers willing to take lower pay can cause wage levels to fall in certain industries. This makes it more difficult for workers to obtain fair compensation.

Loss in Tax Revenue: Hiring illegal workers can result in the loss of revenue to the government as they often work “off books” and are not contributing to the tax system.

Employers face legal consequences.

Civil Penalties for Employing Unauthorized Workers.

Employers who employ people without the right to be employed in the UK could face substantial civil penalties. These penalties, imposed by Home Office, are meant to deter noncompliance. Specific penalties include

First-time Offenders: If an employer hires an illegal worker for the first time, they can face a civil fine of up £20,000.

Penalties for repeat offenses can be increased if the employer is found to repeatedly hire illegal workers. The fine is up to £20,000 per illegal worker, but it can increase if several illegal workers are involved.

The penalty for hiring illegal workers varies depending on whether or not the employer knew about the illegal workers and how negligent they were.

Number of Illegal Employees: The fines are higher if an employer hires more illegal employees. Each illegal worker may result in a different penalty. This can quickly add up when multiple workers are involved.

Knowledge and Intent. Penalties may also be affected by the knowledge and intentions of an employer. Penalties could be increased if an employee is hired illegally by the employer. Even if an employer doesn’t know about an employee’s illegal status, he or she can face penalties if they fail to perform proper checks to determine the right to be employed.