Employers and employees must work together to ensure that they do not hire illegal workers. It is important to understand the legal implications of this practice. MyVetting.com will give you a comprehensive overview of what could go wrong if your understanding of the system is lacking.
Who are illegal workers?
Definition of Illegal Workers under UK Immigration Law
Illegal workers are individuals who do not have the legal right to work in the United Kingdom. They include:
- Visas that have expired: People who entered the UK on a valid visa, but did not renew or extend it before it expired are illegal workers. The individual’s right to work is void once a visa has expired.
- Unauthorized Entry: People who enter the UK illegally or without the proper visa or entry clearance are not usually allowed to work. It includes people who enter the country illegally, or as tourists, but then seek employment.
- Failed asylum seekers: If your application has been denied and you have exhausted all the appeals processes, it is possible that you will no longer be able to work in Britain. They become illegal workers if they continue to work without legal authorization.
- Overstayers are illegal workers. These individuals who stay in the UK after the visa expiry date or who entered the UK as a tourist but stayed to work, are classified as overstayers.
Why Employers Hire Illegal Workers By Mistake
Unintentional hiring of illegal workers can occur for a variety of reasons. This is often the result of a lack of awareness in the hiring process.
The reasons for hiring illegal workers include:
- Document Forgery – Illegal workers can provide documents that are fraudulent or altered, but appear to be genuine. This makes it difficult for employers and immigration authorities to determine the true status of their employees.
- Employers might not have adequate systems in place to verify the right of employees to work documents. This can lead to an oversight or incomplete checks.
- Immigration Laws: Employers can find it difficult to keep up with the complex immigration laws in the UK, which include numerous visa categories, and constantly changing regulations.
- Lack of training: The HR and employer personnel may be unaware or not adequately informed about the proper procedures to conduct right-to-work checks.
- False references: Illegal workers can provide false references, or their employment history in order to hide their immigration status. This makes it difficult for employers to detect irregularities.
Why is it a legal issue?
Employers’ legal obligations to verify right to work
Employers in the United Kingdom have a clear and unambiguous obligation to verify their employee’s right to work. These obligations are outlined in several pieces of legislation, such as the Immigration, Asylum, and Nationality Act 2006.
Employers have a number of key responsibilities, including:
- Right to Work Checks Employers must conduct thorough checks of all potential employees’ right to work before they begin employment. The checks include verifying an individual’s immigration status, and the documents that they present.
- Document Retention Employers must keep accurate and clear records of all documents related to right-to-work checks for their employees. These records must be kept for the duration of an employee’s employment, and two years after their departure.
In the UK, employing illegal workers is a violation of immigration and employment law.
Immigration Law Violations Employers who hire people without the right to work are violating immigration law.
The consequences of these violations include civil penalties, criminal charges and, in extreme circumstances, prison sentences for those responsible within the organization.
Employment Law Violations
Hiring illegal workers is also a violation of employment law, since these workers are denied basic employment rights such as the minimum wage, holiday entitlements, and workplace protections. These practices can result in employment tribunal claims or legal action against employers.
Impact of illegal employment on the wider economy and job market
Illegal employment can affect more than just the employer and employee. It can also have an impact on the UK’s economy and job market.
- Unfair competition: Businesses who hire illegal workers have an unfair advantage in the market over those who comply with immigration and employment laws. This can create a level playing field and distort the market for jobs.
- Unfair Compensation: Legal workers may find it difficult to get fair compensation because of the presence of illegal workers who are willing to accept lower wages.
- Tax revenue lost: The government loses tax revenue when illegal workers are employed. These individuals work “off-the-books” and don’t contribute to the system.
Employing illegal workers is punishable by civil penalties
Employers who hire individuals without the right of work in the UK may face civil penalties that are significant. The Home Office imposes these penalties to discourage non-compliance. These penalties include:
- First-time Offenses: An employer who hires illegal workers for the first time can be penalized up to PS20,000 per illegal worker.
- Penalties can increase if an employer has repeatedly hired illegal workers. The fine for each illegal worker is still up to PS20,000. However, the total amount could be significant if there are multiple illegal workers involved.
Employing illegal workers can result in a variety of penalties, depending on how many illegal workers are employed and whether the employer was aware of their presence or negligent.
- Number of Illegal Worker: The higher the fines that can be imposed on an employer, the more illegal workers they hire. The penalty for each illegal worker is different, and can quickly add up if there are multiple workers involved.
- Knowledge and Intent. Penalties are also affected by the level of knowledge and intention on behalf of the employer. Penalties may be harsher if an employer hires illegal workers knowingly and with intent. Even if the employer was unaware of the employee’s illegal status they could still be penalized for not conducting proper checks on right to work.