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Bosses face jail for hiring illegal workers
Published January 2008
Midlands bosses could face a fine of up to £10,000 and even a two year jail sentence if they are caught hiring illegal workers under new laws that come into effect in February.
Sally Morris, head of employment law at MFG Solicitors, said that in November 2007 the Home Office announced a new system of civil penalties for hiring illegal workers.
“There will be a maximum fine of £10,000 for each illegal worker hired negligently and an unlimited fine or prison sentence for knowingly hiring illegal workers,” said Ms Morris, a partner based at MFG’s dedicated Commercial Centre in Halesowen.
“We are concerned that a number of businesses who employ staff on a casual or temporary basis simply have not cottoned on to the serious nature of these new regulations or the swingeing penalties they could face if they fall foul of the new rules,” she said.
The Government has also published a Code of Practice which describes how the penalty levels will be set and how employers may establish the statutory reasons to avoid liability for negligent hiring.
During 2008 the Government will also introduce compulsory ID cards for foreign nationals and a points-based system for migrants with the first element which covers highly skilled migrant workers due to be implemented by March.
Employers will need a licence in order to sponsor overseas nationals’ visa applications and businesses can now apply for a licence.
“Migrant workers provide a ready source of labour and where demand is high it is also too easy for regulatory procedures to fail within businesses. Company directors need to ensure that they are complying with the new regulations or they could face fines of up to £10,000 for each and every illegal worker they have employed!” said Ms Morris.”
“It is vital that they take urgent advice and ensure that their systems are watertight as ignorance of the law is no defence.”
However, Ms Morris warned, by carrying out checks on workers believed not to be British Citizens on the basis of race, employers could potentially be faced with a claim for racial discrimination.
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