A manager of a restaurant in Herefordshire has recently been banned as a company director for five years after employing two illegal workers. The case highlights the penalties which employers face for illegal employment.
Background
Masoom Khan, who is a manager of an Indian restaurant in Herefordshire, hired two individuals for his restaurant. However, they did not have the right to work in the UK and were found during an Immigration Enforcement raid in June 2021. It was discovered that Khan had hired them without checking that they had the right to work in the UK, breaking the Immigration, Asylum and Nationality Act 2006.
The company was fined £20,000 and subsequently entered liquidation in December 2021 with liabilities exceeding £73,000. The Insolvency Service has disqualified Khan. The disqualification, effective from 17 September 2024, prohibits Khan from involvement in company promotion, formation, or management until September 2029.
For employers, such severe penalties are undoubtedly disastrous. UK governments have recently made a concerted effort to crack down on illegal work, with enforcement arrests more than doubling in the past year and fines rocketing. What happened to Khan underlines the importance of legal employment and compliant hiring procedures for UK employers.
How can employers avoid this happening ?
The high fines and strict penalties would simply lead a lot of employers to go bankrupt. So, how can employers play by the rules to avoid this happening?
Right to Work Check
Employers in the UK have a legal obligation to take Right to Work checks to verify that all of their employees have the legal right to work in the United Kingdom.
Firstly, employers should check the original physical documents provided by the employee or use digital verification systems provided by the Home Office to confirm an individual’s right to work. Furthermore, employers should require employees to provide a share code and their date of birth to verify their right to work through the Home Office’s online service. Where an individual’s documents are held by the Home Office or during an immigration application, employers should also use the Home Office Employer Checking Service to request official confirmation of the right to work.
Employers are under a duty to conduct proper checks to all potential employees and stay informed of the right to work status of their current employees.
By carrying out Right to Work checks in the correct manner, employers should be able to rely on a statutory defence against allegations of compliance breaches, where they can demonstrate they have taken consistent and compliant measures to ensure they are only hiring individuals with permission to work in the UK.
Sponsor licence
Faced with a shortage of local labour, many employers are putting their hopes on the global labour market. In order to employ foreign nationals who are not settled in the UK, however, employers must apply to the Home Office for a sponsor licence.
A sponsor licence is the formal authorisation granted by the Home Office to a UK organisation, allowing them to sponsor non-UK nationals under certain work visa routes. Once the employer has obtained a Sponsor Licence from the Home Office, they can issue Certificates of Sponsorship to potential employees to enable them to apply for a work visa in the UK. To obtain a sponsor licence, employers should submit an application to the Home Office to evidence their eligibility and prove that they meet the immigration compliance requirements.
The Sponsor Licence ensures that businesses remain compliant with UK immigration laws, avoiding penalties for hiring foreign workers. In addition, being a licensed employer (also known as a ‘sponsor’) can be an advantage when recruiting, further enabling businesses to bring highly skilled workers from overseas.
Our thoughts
Immigration law and requirements have been changing rapidly and it is harder than ever for employers to keep up with the latest changes and steer clear of illegal employment. Lisa’s Law Immigration team is experienced in assisting in such matters and will advise you on the latest requirements and guide you throughout the process.
Should you wish to know more information about immigration law, please do not hesitate to contact Lisa’s Law and our experienced solicitors will be happy to assist you.
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