Civil Penalty Notice: Expert Legal Defence for UK Employers

Civil Penalty Notice for Illegal Working: How NA Law Solicitors Can Help

If your business has received a civil penalty notice from the Home Office for employing an illegal worker, you are facing a potential fine of up to £60,000 per worker. This page explains what a civil penalty notice is, the grounds for challenge, your options for objection and appeal, and how NA Law Solicitors can provide expert legal representation to protect your business.

What is a Civil Penalty Notice?

A civil penalty notice is a formal fine issued by the Home Office under the Immigration, Asylum and Nationality Act 2006 when an employer is found to be employing a person who does not have the legal right to work in the UK. The notice sets out:

• The total amount you must pay

• The reasons for the penalty

• The deadline for payment (typically 28 days)

• How to pay

• Your right to object to the decision

Civil penalties are part of the Home Office’s illegal working enforcement strategy and can have serious financial and reputational consequences for your business.

How Much is a Civil Penalty for Illegal Working?

The amount of a civil penalty depends on several factors, including your compliance history and whether any mitigating factors apply. As of 2025, the penalty structure is:

First breach within 3 years: Up to £45,000 per illegal worker (before reductions)

Repeat or serious breach: Up to £60,000 per illegal worker

Fast Payment Option: First-time offenders may qualify for a 30% reduction if the full amount is paid within 21 days of the notice date

The Home Office applies a sliding scale and may reduce the penalty by up to £5,000 per worker for each mitigating factor you can demonstrate, such as:

• Having HR systems in place to prevent illegal working

• Voluntary reporting of the breach

• Evidence of generally good compliance with employment and immigration law

If you demonstrate all three mitigating factors for a first breach, the Home Office may issue a Warning Notice instead of a financial penalty.

Grounds for Objecting to a Civil Penalty Notice

You have 28 days from the date on the notice to lodge a formal objection to the Home Office. The main grounds for objection include:

1. Statutory Excuse Defence

You are not liable for a civil penalty if you can prove you conducted the required right-to-work checks before employing the worker. This is a complete defence and, if successful, will result in a No Action Notice. The checks must have been carried out correctly and documented in accordance with Home Office guidance.

2. The Worker Had Permission to Work

If you can provide evidence that the individual had the right to work in the role at the time of employment, the penalty should be cancelled.

3. Incorrect Identity of Employer

If the notice has been served on the wrong person or entity, you can object on the grounds that you were not the employer.

4. Mitigating Factors

Even if you cannot establish a complete defence, you can present mitigating factors to reduce the penalty amount or request a Warning Notice instead.

5. Procedural Errors

If the Home Office failed to follow proper procedures in issuing the penalty, this may be grounds for objection.

The Civil Penalty Objection Process

When you receive a civil penalty notice, you must act quickly. Here is the process:

Step 1: Review the Notice (Days 1-7)

Carefully review the civil penalty notice and gather all relevant evidence, including:

• Right-to-work check documentation

• Employment contracts and HR records

• Copies of identity documents you checked

• Evidence of your HR systems and compliance procedures

Step 2: Lodge Your Objection (Within 28 Days)

Complete the objection form included with your civil penalty notice. Set out your grounds for objection clearly and provide all supporting evidence. NA Law Solicitors can prepare a detailed legal representation on your behalf.

Step 3: Home Office Review

A Home Office caseworker will review your objection and may:

• Cancel the penalty (No Action Notice)

• Issue a Warning Notice instead

• Reduce the penalty amount

• Maintain the penalty

• Increase the penalty (in some cases)

You should receive a decision within 28 days, although this can take longer.

Step 4: County Court Appeal (If Necessary)

If your objection is unsuccessful, you have 28 days from the date of the decision to appeal to the County Court. You can appeal without first objecting if you prefer, but it is generally advisable to exhaust the objection process first.

What Happens if You Don’t Respond to a Civil Penalty Notice?

Failing to respond to a civil penalty notice or pay the fine can have serious consequences:

• The Home Office may take debt recovery action against your business

• County Court Judgments (CCJs) may be registered against you

• Your business details may be published on the Home Office website as a named employer who has employed illegal workers

• If you hold a sponsor licence, it may be downgraded, suspended or revoked

• In serious cases where you knowingly employed an illegal worker, you may face criminal prosecution with unlimited fines or imprisonment

It is essential to take advice and act quickly when you receive a civil penalty notice.

Criminal Prosecution for Knowingly Employing Illegal Workers

In addition to civil penalties, section 21 of the Immigration, Asylum and Nationality Act 2006 makes it a criminal offence to knowingly employ a person who does not have the right to work in the UK. If convicted, you can face:

• Unlimited fines

• Up to 5 years’ imprisonment

• Disqualification of company directors

• Serious reputational damage

The Home Office must prove that you knew or had reasonable cause to believe the worker did not have the right to work. This is a higher evidential threshold than for civil penalties, but the consequences are much more serious.

 Impact of Civil Penalties on Sponsor Licence Holders

If you hold a Skilled Worker sponsor licence or other type of sponsorship licence, receiving a civil penalty notice can jeopardize your ability to continue sponsoring migrant workers. The Home Office may:

• Downgrade your licence from an A-rating to a B-rating

• Suspend your licence pending an investigation

• Revoke your licence entirely

Loss of a sponsor licence can be devastating for businesses that rely on overseas talent. It is critical to respond robustly to any civil penalty notice and, where possible, demonstrate that the breach was isolated and that you have strong compliance systems in place.

How NA Law Solicitors Can Help with Civil Penalty Notices

NA Law Solicitors is a specialist immigration law firm based in Brentford, West London, with extensive experience in representing employers facing civil penalty notices for illegal working. Our team can assist you at every stage:

Initial Assessment and Advice

We will urgently review your civil penalty notice and advise you on the strength of your case, your options for objection, and the likely outcome.

Preparing Your Objection

We will gather and analyse all relevant evidence, draft a detailed legal representation setting out your grounds for objection, and submit it to the Home Office on your behalf within the strict 28-day deadline.

Negotiating Reduced Penalties

Where appropriate, we will present mitigating factors and negotiate with the Home Office to reduce the penalty amount or secure a Warning Notice instead of a fine.

County Court Appeals

If your objection is unsuccessful, we can represent you in a County Court appeal, presenting your case before a judge and cross-examining Home Office witnesses.

Sponsor Licence Protection

If you hold a sponsor licence, we will liaise with the Home Office to protect your licence and demonstrate that you have taken corrective action to prevent future breaches.

Right-to-Work Compliance Audits

To prevent future civil penalties, we can conduct a comprehensive audit of your right-to-work checks, HR systems and recruitment procedures, and provide training to your HR team.

 If you have received a civil penalty notice, time is critical. Contact NA Law Solicitors today on 0203 524 5439 or email admin@nalawsolicitors.co.uk for urgent advice and representation.

Preventing Civil Penalties: Right-to-Work Compliance

The best way to avoid a civil penalty is to ensure robust right-to-work checks are carried out before employing any worker. Under the Immigration, Asylum and Nationality Act 2006, employers have a statutory excuse defence if they can show they:

• Checked original identity and immigration documents before employment commenced

• Checked documents that are on the Home Office’s list of acceptable documents

• Made and retained clear copies of the documents

• Recorded the date of the check

The Home Office has introduced an online right-to-work checking service for individuals with biometric residence permits, biometric residence cards, or status under the EU Settlement Scheme. Employers should use this service where applicable, as it provides a stronger defence.

NA Law Solicitors can provide:

• Training for HR staff on right-to-work compliance

• Template policies and procedures

• Right-to-work check audits of existing staff

• Ongoing compliance support

Recent Changes to Civil Penalty Enforcement

The Home Office has significantly increased civil penalties in recent years as part of its strategy to combat illegal working. Key changes include:

• Increased penalties: Fines have risen from £20,000 to £45,000-£60,000 per worker since 2024

• More enforcement visits: Immigration Enforcement has stepped up compliance visits to workplaces, particularly in high-risk sectors such as hospitality, construction, and care

• Naming and shaming: The Home Office now publishes details of employers who have been issued with civil penalties on its website

• Tougher stance on repeat offenders: Repeat breaches attract higher fines and a greater likelihood of sponsor licence revocation

These changes mean that the stakes are higher than ever for employers. Legal advice and robust compliance systems are essential.

Frequently Asked Questions on challenging an illegal penalty notice