Employers neglecting checks on the legal employability of their staff under UK law may be under fire warns Susie Thomson of Matrix Security Watchdog.
The UK Government’s recent five-point plan to regulate immigration involves a substantial increase in penalties for companies employing illegal immigrant workers. Last year, violating this rule would cost an employer up to £20,000 in fines per identified worker, serving as a reasonably effective deterrent. However, the government believes it’s not enough. According to the anticipated regulations coming into effect in February, this fine is set to triple, reaching £60,000.
Assessing the Risk: What’s at stake for employers in the face of this heightened immigration surcharge?
Despite the ongoing debate on UK immigration, the exact number of people living in the country illegally remains unknown. An estimate from a 2020 study by the Greater London Authority suggests that between 594,000 and 745,000 undocumented individuals reside in the UK.
This represents approximately 1% of the total population. If these statistics are reliable, it implies that in a workforce of 100 people, there’s a considerable chance that one might be working illegally. The risk is even higher in sectors with a substantial migrant workforce.
According to the ‘Migrant workers and skills shortages in the UK’ report by the CIPD in May 2023, one in four businesses on average currently employs migrant workers. The report defines ‘migrant’ as individuals born overseas, irrespective of their citizenship status. The study highlights the highest migrant employment rates in IT (37%) and healthcare (32%). Additionally, the CIPD’s Labour Market Outlook winter 2022/23 reports that business services (27%), education (22%), and construction (22%) are the next most likely sectors to rely on the immigration system to fill job vacancies.
The Perfect Storm
In reality, UK companies of all sizes and across various sectors are facing a perfect storm. Brexit-induced skills shortages are hitting hard, forcing them into the competitive candidate marketplace. The urgency to fill roles quickly, however, poses a significant risk of incurring major financial penalties if candidates, including existing staff, are not thoroughly screened.
Whether one deems the fine increase disproportionate or not, it is imminent. Companies that ignored warnings last year and failed to implement robust screening practices must act swiftly. The only way to obtain a statutory excuse against liability for an illegal working civil penalty is by conducting compliant right-to-work verifications following Home Office guidance.
No Room for Error The challenge lies in the complexity of such guidance, making it challenging to interpret correctly. Seeking professional assistance for employee screening ensures compliance and accelerates the process, avoiding costly mistakes. This approach allows for expedited recruitment while significantly reducing the risk of fines for employing someone illegally. It instills confidence in widening the candidate pool to include migrant workers without fear of legal repercussions.
With the increasing reliance of UK businesses on migrant workers to fill widening skill gaps, getting the candidate screening process right has never been more critical under the new rules.
Originally published HR Gazette | February 2024
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