UK Immigration: Updates to Fines for Illegal Working and Renting

At a Glance

• At the start of 2024, fines will triple for UK employers and landlords found to be employing or renting to someone who does not hold appropriate immigration permission.
• Employers have a responsibility to familiarise themselves with the Codes of Practice on preventing illegal working, to ensure they conduct the Right to Work checks and retain the evidence in the prescribed manner.
• Landlords are responsible for checking that the person with whom they are contracting has the immigration permission necessary to rent in the United Kingdom, by conducting the appropriate Right to Rent checks in the prescribed manner.

On Monday, 7th of August 2023, the Home Secretary announced a substantial increase to the fines an employer or landlord may incur if they are found to be employing or renting to an individual who does not hold appropriate immigration permission. This is the first change to these regulations since 2014 and will come into force at the start of 2024.

The changes are:

• Employer fines:
  • For a first breach: £45,000 fine per illegal worker employed (up from £15,000).
  • For a repeat offence: £60,000 fine per illegal worker employed (up from £20,000).
• Landlord fines:
  • For a first breach:
    • £5,000 fine per illegal lodger (up from £80)
    • £10,000 fine per illegal occupier (up from £5,000)
  • For a repeat offence:
    • £10,000 per illegal lodger
    • £20,000 per illegal occupier

The Home Office confirmed it will “consult on options to strengthen action against licensed businesses who are employing illegal workers.” Currently, licenced businesses, like all businesses, have a responsibility to conduct the Right to Work checks for all the individuals they hire. Failure to complete the checks in the prescribed manner may result in a fine being issued if the employer is found to be employing an illegal worker. Additionally, licence holders may have their licence rating downgraded or completely revoked if their conduct is found to be detrimental or illegal. It will be interesting to learn how the Home Office intends to strengthen the actions against these businesses.

In the announcement, the Home Office acknowledged employment and housing as the leading factors for people illegally crossing the English Channel. These changes are intended to disincentivize illegal migration, as well as the businesses and landlords that may try to exploit such activities.

Ultimately, employers have a responsibility to familiarise themselves with the Codes of Practice on preventing illegal working, to ensure they conduct the Right to Work checks and retain the evidence in the prescribed manner. Equally, landlords must also acknowledge their responsibility to ensure the person with whom they are contracting has the immigration permission necessary to rent in the United Kingdom by conducting the appropriate Right to Rent checks in the prescribed manner.