The Supreme Court has delivered an important judgment in Akbars Restaurant (Middlesbrough) Ltd v Secretary of State for the Home Department [2026] UKSC 26, strengthening procedural safeguards for employers facing illegal working civil penalties.
The decision confirms that the Home Office must provide clear and specific reasons when issuing a civil penalty notice, enabling employers to understand the allegation against them and make an informed decision about whether to challenge it.
Written by Angel Wan, Solicitor
The Case
The Home Office issued a £15,000 civil penalty to a restaurant under section 15 of the Immigration, Asylum and Nationality Act 2006 for allegedly employing a person without the right to work in the UK.
However, the penalty notice simply listed every possible ground under section 15(1) without identifying which specific ground the Secretary of State relied upon. The employer argued that the notice failed to explain why it was liable for the penalty, rendering it invalid.
The Supreme Court’s Decision
The Supreme Court unanimously allowed the appeal and held that the penalty notice was invalid.
The Court confirmed that section 15(6)(a) requires the Secretary of State to state the reasons why an employer is liable, including identifying the specific limb of section 15(1) relied upon. A notice that merely lists all possible grounds does not satisfy this statutory requirement.
The Court emphasised that, although described as a civil penalty, the regime is penal in nature. As such, employers are entitled to receive sufficient information to understand the allegation against them, decide whether to object or appeal, and prepare any defence. The Court also noted that providing clear reasons promotes fairness and accountability when the state exercises its power to impose financial penalties.
Importantly, the Supreme Court rejected the Home Office’s argument that the defect could be cured later during the appeal process. Failure to comply with the statutory requirement meant that the penalty notice was invalid from the outset.
What This Means for Employers
This judgment reinforces that employers are entitled to fair and properly reasoned civil penalty notices before significant financial penalties can be imposed.
While the decision strengthens procedural protections, it does not reduce employers’ ongoing obligations to carry out compliant right-to-work checks. Businesses should continue to ensure they have robust recruitment procedures and maintain appropriate records to establish a statutory excuse where applicable.
Where a civil penalty notice has been issued, employers should carefully review whether it complies with the statutory requirements. Defects in the notice itself may provide grounds to challenge its validity.
How We Can Help
Our immigration team regularly advises businesses on right-to-work compliance and illegal working civil penalties. If you have received a civil penalty notice or require advice on your right-to-work procedures, please do not hesitate to reach out. We can assess your position and advise on the most effective course of action.
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