• Tue. Sep 2nd, 2025

Employing illegal workers in the UK has legal consequences.

ByLondon Connected

Oct 9, 2023
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It is a complex and critical challenge that both employers and workers must face to avoid hiring illegal workers. Understanding the legal ramifications isn’t just a good idea, it’s essential. MyVetting.com gives you an overview of how things can go wrong if the system, and your role within it, are not understood.

Who Are the Illegal Workers in the UK?

The definition of illegal workers in UK immigration law

In UK immigration law, the term “illegal worker” refers to people who are not allowed to legally work in the United Kingdom. This includes:

  • Expired visas: Illegal workers are individuals who entered the UK in possession of a valid Visa but allowed it to expire, without renewing it or extending it. When a visa expires the permission to work of an individual is nullified.
  • Unauthorised Entry. Those who enter UK without the required entry clearance or visa will not be able to work. This includes those who entered the UK illegally or only as tourists and later sought employment.
  • Failed Asylum-Seekers: Asylum-seekers whose applications were rejected and who have exhausted the appeals process may not have the right to continue working in the UK. If they continue to work illegally, they will become illegal workers.
  • Overstayers: Individuals that remain in the UK for a longer period than specified on their visa or those that entered the UK to visit but then stayed in order to find employment are considered illegal workers.

Possible Reasons for Employers to Hire Illegal Workers Unintentionally

Many employers hire illegal workers unintentionally for lots of different reasons. These include:

  • A lack awareness of the law
  • Mistake in their hiring process.

Some of these reasons are:

  • Document Forgery Illegal workers may present fraudulent or altered documents which appear genuine. Employers are then unable to detect the true immigration status.
  • Inadequate verification: Employers can have weak systems for verifying the employees’ right to employment documents. This may lead to oversights or incomplete checks.
  • Complex Immigration Rules. The complexity of UK immigration law can be difficult for employers to understand, especially with its numerous visa categories.
  • Lack of Training: It is possible that employers and HR personnel are not properly trained or informed on the correct procedures to be followed when conducting a right-to work check.
  • False References Illegal workers will often provide false references and employment histories to disguise their immigration status. Employers are then unable to identify irregularities.

Why Is It A Legal Issue?

Employers have legal obligations to verify the right to work.

Employers have a legal obligation in the United Kingdom to confirm their employees’ right of work. The Immigration, Asylum, and Nationality Act of 2006, for example, lays out these obligations. Employers are responsible for:

  • Right to Work: Before starting employment, employers are required to conduct thorough rights to work checks. These checks are designed to verify the validity and authenticity of the immigration status and documents presented by an individual.
  • Document Retention: All employers are required to maintain accurate and complete records of the right to work check and any related documents. These records need to be kept throughout an individual’s time at work and for two additional years after they leave.

The UK’s immigration and employment laws are broken when illegal workers are employed.

Immigration Law Violations – Employers who hire workers without the legal right to work violate immigration laws. In extreme cases, these violations may result in criminal charges or civil penalties for the individuals responsible in the organisation.

Employment Law Violations. Hiring illegal employees can also be a breach of employment laws. These individuals are often denied their fundamental employment rights like minimum wage and holiday entitlements. Employment tribunal claims and legal action against employers can be brought about by such practices.

The impact of illegal employment in the economy and on job markets

The effects of illegal employment go beyond the individual employer and employee. They can have a wider impact on UK economy and jobs market.

Unfair Competition: Businesses which hire illegal workers enjoy an unfair competitive edge over businesses that adhere to employment and immigration law. This can lead to a distortion of the job market, and an unfair playing field.

Low Wages: Illegal workers are often willing to work at lower wages, which can make it harder for legal workers in certain industries to receive fair compensation.

Loss of Tax Revenue : Employing illegal workers causes the government to lose tax revenue, since these individuals are often “off the books”, and do not pay taxes.

Employers: Legal Consequences

Employing illegal workers can lead to civil penalties.

Employers that hire people without the legal right to work in Britain can be subjected to significant civil penalties. These penalties are imposed to discourage noncompliance by the Home Office.

Specific penalties include.

First Offenses – For the first offense of hiring illegal workers, employers can face civil penalties of up to £20,000.

Repeat Offenders: Penalties may increase if it is discovered that an employer hired illegal workers repeatedly. The fine per illegal worker can still be as high as £20,000. But the total amount is much higher if more than one illegal worker has been involved.

Employing illegal employees can carry a range of penalties depending on the number and level of negligence or knowledge on the part the employer.

Number of illegal Workers: The greater the number of illegal workers that an employer employs, the larger the fines could be. Penalties can be imposed on each illegal worker, which can quickly mount if several workers are involved.

Knowledge and Intent. The severity of penalties can be affected by an employer’s knowledge and intent. Penalties can be severer if the employer hired illegal workers with knowledge and intent. If an employer does not know that an employee is illegal, they may still be subject to penalties for not performing the right to work checks.