Civil Penalties

CIVIL PENALTIES

Under the Immigration Act 2016, all UK employers, including Swiss companies employing workers in the UK, can face significant civil penalties if they knowingly hire individuals without the legal right to work in the UK. These penalties extend beyond financial repercussions, potentially damaging an organisation’s reputation and future ability to hire foreign workers.

Understanding Immigration Civil Penalties

A Civil Penalty Notice may be issued by the Home Office if a Swiss employer in the UK is found to have known or had "reasonable cause to believe" that their employee(s) did not have the right to work in the UK. This includes employees who are breaching the conditions of their current permission by working in the UK. Civil penalties aim to prevent and discourage illegal working.

Maximum Penalties

First Offence: Up to £45,000 per illegal worker.
Repeat Offence: Up to £60,000 per illegal worker.

Mitigating Factors

The penalty amount can be influenced by several mitigating factors, which may reduce the fine:

Reporting: A history of reporting suspected illegal workers can reduce the fine.
Active Cooperation: Cooperating with the Home Office during investigations can also lower the penalty.
Effective Right to Work Procedures: Demonstrating effective document checking practices can convert a civil penalty notice to a warning notice, eliminating the fine.

Fast Payment Option

A 30% reduction in the total penalty is available for payments made within 21 days, often referred to as the Fast Payment Option (FPO).

The Civil Penalty Process

Civil Penalty Referral Notice: Issued after a compliance visit if illegal employment is suspected, indicating further investigation.
Information Request: Employers have 10 days to respond with evidence and information about the right to work checks conducted.
Civil Penalty Notice: Issued if liability is determined, detailing the reasons, amount payable, and options for payment or objection.

Responding to a Civil Penalty Notice

Paying the Penalty: Employers can pay the specified amount, with a 30% discount available for fast payment within 21 days.
Objecting to the Penalty: Employers have 28 days to object, providing reasons and supporting evidence. Acceptable grounds for objection include not being liable, having a statutory excuse, or the penalty being too high.
Appealing the Penalty: If an objection is unsuccessful, employers can appeal to the County Court within 28 days. Grounds for appeal are similar to those for objections.

Consequences of Civil Penalties

Public Records: Civil penalties are published on the Home Office website, and press releases may name offending companies.
Sponsor Licence Applications: History of illegal employment affects future applications for Tier 2 or 5 Sponsor Licences.
Cooling Off Period: Employers may face a cooling-off period, typically 12 months, before applying for a new sponsor licence if penalties are issued.
Company Director Impact: Civil penalties can affect an individual’s ability to act as a company director if enforcement action is taken.

Avoiding Civil Penalties

Conducting proper right to work checks can prevent civil penalties. Compliant checks provide a statutory excuse if it later emerges that an employee did not have the right to work. Regularly updating right to work checks and keeping accurate records are crucial for compliance.

How Our UK Immigration Lawyers In Switzerland Can Help

Our immigration lawyers can guide Swiss employers in the UK through the right to work checks and ensure compliance. We provide expert advice on responding to Civil Penalty Referral Notices and Civil Penalty Notices, including representation in civil penalty appeals in the County Court.

We pride ourselves on being approachable and proactive, understanding and meeting our clients' needs. Our team is dedicated to providing clear and reliable immigration advice to Swiss companies operating in the UK as part of a professional and friendly service.

For expert advice and assistance, contact our specialist civil penalty immigration lawyers on +41 21 588 07 70 or complete our enquiry form below.