How the Home Office calculates the penalty
Stage 1
Liability
Did you have a statutory excuse? If yes — no action. If not, the penalty is calculated.
Stage 2
Level of breach
First breach in 3 years starts at £45,000 per worker; a repeat breach at £60,000.
Stage 3
Mitigation
£5,000 off for reporting, £5,000 off for co-operating, and a possible Warning Notice on a first breach.
To report a suspected illegal worker, call the Home Office employers’ helpline on 0300 790 6268 and keep the reference number.
From 1 October 2026: more workers in scope
The new code of practice extends illegal working penalties beyond employees to people on worker contracts, individual sub-contractors and online matching platforms, for engagements starting on or after 1 October 2026. If you use casual, agency or gig labour, check them the same way you check employees.
Frequently asked questions
What is the fine for employing an illegal worker in the UK?
The civil penalty is up to £45,000 per illegal worker for a first breach and up to £60,000 per worker for a repeat breach within 3 years. Knowingly employing an illegal worker is also a criminal offence with an unlimited fine and up to 5 years in prison.
How can an employer reduce an illegal working penalty?
The penalty is reduced by £5,000 per worker if you reported the suspected illegal worker to the Home Office and got a reference number before they were found, and by a further £5,000 if you actively co-operated. On a first breach, showing effective right to work checking practices as well can reduce it to a Warning Notice.
What is the faster payment option?
If it is your first penalty, paying in full within 21 days of the Civil Penalty Notice reduces the amount by 30%. It cannot be paid in instalments and is not available for repeat breaches.
What is a statutory excuse?
A statutory excuse is your defence against a civil penalty. You get it by carrying out the correct right to work check before employment starts, and any follow-up check before time-limited permission expires, and keeping a record. With a statutory excuse you get a No Action Notice.
How do I object to a civil penalty?
You can object in writing within 28 days on three grounds: you are not liable, you have a statutory excuse, or the penalty is too high. You stay eligible for the 30% faster payment reduction if you object before the payment deadline.
What else can happen besides the fine?
The Home Office publishes the names of penalised employers, and a penalty can lead to your sponsor licence being revoked, closure notices, and difficulty getting licences or credit. Directors can also be disqualified.
Official sources
Rules and fees checked September 2026. Immigration rules change often — this tool gives general information, not legal or immigration advice. For advice on an individual case, speak to a regulated immigration adviser or one of the firms listed here.