Every company in the UK, regardless of size or sector, has a legal responsibility to comply with immigration laws. Failing to do so can lead to severe consequences, including substantial financial penalties and reputational damage. The amount of financial penalty has recently increased to such a degree that a single fine could prove fatal to the wellbeing of a small or medium sized business. At Azarmi Law, we specialize in guiding businesses through the complex and sometimes costly landscape of UK immigration law, including when faced with substantial penalties.
The Risks of Non-Compliance
The UK Home Office has significantly increased enforcement of immigration rules, targeting illegal working and the transportation of clandestine entrants. Companies that hire individuals without the right to work or fail to secure their vehicles against unauthorised entrants risk:
- Civil Penalties for illegal workers: The civil penalty schemes for breaches of immigration law in England and Wales are primarily governed by the Immigration, Asylum and Nationality Act 2006 (IANA 2006) and the Immigration Act 2014. Under section 15 of the IANA 2006, employers can be penalised for employing individuals who are subject to immigration control and do not have the right to work in the UK. The maximum civil penalty for employing illegal workers tripled from £20,000 to £60,000 on 13 February 2024. The Home Office’s figures show that the number of penalties issued for the second quarter of 2024 amounted to £21.5 million, as opposed to £5.6 million in the same quarter of 2023 [Immigration Enforcement Data: Q3 2024]. This is almost a fourfold increase.
- Penalties for Clandestine Entrants: The law which establishes the penalty scheme for clandestine is contained within Part II of the Immigration and Asylum Act 1999. Further legal requirements, including the security standards expected of owners, operators, hirers to adhere to when securing a vehicle, are found in the Carriers’ Liability Regulations 2002 and the Carriers Liability (Amendment) Regulations 2023. Recent legislative changes have tightened these rules further, making statutory defences more difficult to establish. Under the current regulations, individuals responsible for a clandestine entrant may be required to pay a civil penalty of up to £10,000 per clandestine entrant.
- Penalties for Drivers: If you are driving a goods vehicle, you have responsibilities under the Carriers Liability (Amendments) Regulations 2023. If your vehicle is not adequately secured you could be fined, even if no clandestine entrant is found. You may face a fine of up to £6,000 if you drive a goods vehicle that is not adequately secured. This applies whether you are entering or departing the UK. This is a fine imposed on the driver which will often land with the employer.
- Criminal Charges: In cases of deliberate or repeated breaches, directors may face criminal prosecution.
Your Responsibilities as an Employer
- Right-to-Work Checks: Employers must verify that all employees have the right to work in the UK. This includes checking and keeping records of relevant documents.
- Preventing Clandestine Entrants: Businesses in the transport sector must take measures to secure vehicles, ensuring they are not used to smuggle individuals into the UK.
- Staying Updated: Immigration laws and penalties are frequently updated. Businesses must stay informed to remain compliant.
How We Can Help
At Azarmi Law, we specialize in guiding businesses through the complex and sometimes costly landscape of UK immigration law. Our services include:
- Legal Representation: If your company is facing a civil penalty or investigation, our specialist team will defend your interests, negotiate with the authorities and advise you on the level of the penalties imposed. We will also advise you on whether there is a case for reducing any penalties or if there is a defence in respect of the entire penalty. As penalties have become increasingly substantial, it is important to seek advice as early as possible in the process as any reductions that can be won are often time restricted and can be very substantial in themselves.
We work closely with Immigration and Criminal law counsel on such cases. We recently acted for a haulage company with substantial penalties amounting to £160,000, imposed against them in connection with the finding of clandestine entrants. Together with Thomas Daniel of 2 Bedford Row, we successfully objected to the level of penalty and secured a reduction of over 50% on the penalty payable, without appealing to the County Court.
- Compliance Audits: We can complete a thorough review of your current practices to identify and address vulnerabilities.
- Right-to-Work Training: We offer tailored training sessions for HR teams to ensure checks are conducted correctly.
- Vehicle Security Advice: For transport businesses, we help identify measures to prevent unauthorized access and comply with Home Office guidelines.
Don’t Take Risks with Your Business
Immigration compliance is not just a legal obligation—it is essential to protecting your company’s future. Contact us today to ensure your business meets all regulatory requirements and avoids costly penalties. Prevention is always better than cure!
