Civil Penalty Notices and Appeals for UK Employers

A Home Office civil penalty notice can expose an employer to a fine of up to £45,000 per worker for a first breach and £60,000 per worker for a repeat breach within three years. The notice can be challenged, but the written objection deadline is normally 28 days from the due date specified in the notice. If an objection is unsuccessful, a further 28-day court appeal period may apply. Check the dates printed on your notice immediately.

This page is the main guide to illegal-working civil penalties for employers. It explains the referral, objection and appeal stages, the statutory-excuse defence, penalty mitigation and the evidence that should be preserved. If your deadline is running, use the process table below to go straight to the service that matches the letter you have received.

Where are you in the civil penalty process?

The correct next step depends on the document you are holding. Choose the route that matches your position.

Not sure which route applies, or is the deadline close? Call 0203 524 5439 with the notice in front of you. Do not rely on a date calculated from memory: the wording and dates on the notice matter.

What is an illegal-working Civil Penalty Notice?

A Civil Penalty Notice is a formal notice issued under section 15 of the Immigration, Asylum and Nationality Act 2006. It records the Home Office’s decision that an employer is liable for employing a person who was disqualified from employment because of their immigration status and that the employer has not established a statutory excuse.

The notice should identify the worker or workers, state the particular section 15(1) ground relied on, explain why liability is alleged, state the penalty, give payment details and explain the right to object. It is different from a Referral Notice, which tells the employer that the facts are being considered but does not itself impose a penalty.

Important 2026 decision: in Akbars Restaurant [2026] UKSC 26, the Supreme Court held that a Civil Penalty Notice must identify the specific section 15(1) ground relied on and that failure to do so rendered the notice invalid. Read what the Akbars decision means for employers.

Can a civil penalty be cancelled or reduced?

Yes. The Home Office’s current code identifies three grounds on which an employer may object. The evidence should be organised around the ground or grounds that genuinely apply.

1. The business is not liable

This may arise where the wrong legal entity has been identified, the person was not employed under the relevant legal test, or the factual basis of the allegation is incorrect. Company structure, contracts, payroll records and evidence of who exercised control may be important.

2. The employer has a statutory excuse

A statutory excuse is the legal defence created by carrying out the prescribed right-to-work check before employment begins and retaining the required evidence. The correct method depends on the worker’s status and may be a Home Office online check, a prescribed manual document check, an Identity Service Provider check for eligible British and Irish citizens, or a Positive Verification Notice from the Employer Checking Service.

It is not enough to show that somebody looked at a document. The method, timing, identity check, work restrictions, retained record and any required follow-up check must all be assessed.

3. The penalty amount is too high

The Home Office may have used the wrong breach level, overlooked evidence or failed to give credit for a relevant mitigating factor. The calculation should be checked worker by worker against the code that applies to the date of the alleged breach.

Civil penalty objection and appeal deadlines

Written objection to the Home Office

An objection must normally be made in writing within 28 days of the due date specified in the Civil Penalty Notice. It should state the relied-on ground, address the Home Office’s case and include the supporting evidence. A general complaint, an unsupported explanation or a late document dump may not protect the employer’s position.

The Home Office can cancel, reduce, maintain or increase the penalty after an objection. The current code says that an employer who objects within the specified deadline remains eligible for the Faster Payment Option if it is otherwise available.

Appeal to the court

If the objection outcome leaves the employer liable, the correct court depends on the employer’s principal place of business. The linked NA Law County Court appeal service is for employers based in England and Wales. The appeal is a re-hearing, but it may only rely on grounds that could have been raised in the objection. This is why the written objection must be prepared with the possible appeal in mind.

The court deadline is normally 28 days from the date specified on the Objection Outcome Notice or a new Civil Penalty Notice. A separate rule applies if the Home Office does not reply to an objection within its 28-day response period. Court appeals can create costs exposure, so obtain advice on the exact deadline, evidence and commercial merits.

How much can the Home Office charge?

For breaches falling under the code in force from 13 February 2024, the starting maximum is £45,000 per worker for a first breach and £60,000 per worker for a repeat breach within three years.

• Faster Payment Option: a qualifying first penalty can be reduced by 30% if paid in full within 21 days.
• Voluntary reporting: where the employer reported the suspected illegal worker before the Home Office identified them and received a Unique Reference Number, the code provides for a £5,000 reduction per worker.
• Active cooperation: evidence of active cooperation with the Home Office can provide a further £5,000 reduction per worker.
• Warning Notice: for a first breach, effective right-to-work systems together with the first two mitigating factors may result in a Warning Notice rather than a financial penalty. A Warning Notice is not available for a repeat breach.

These outcomes are evidence dependent. A policy written after the visit does not prove that an effective system operated when the worker was recruited.

Evidence to preserve as soon as the Home Office makes contact

Preserve the original documents and a clear chronology. Do not alter records or create retrospective check dates. Depending on the case, the evidence may include:

• the Referral Notice, Information Request, Civil Penalty Notice and all Home Office correspondence;
• the relevant right-to-work check output, share-code result, document copy, Identity Service Provider output or Positive Verification Notice;
• the date and method of each initial and follow-up check;
• contracts, rotas, payroll, invoices and evidence identifying the true employer;
• the worker’s role, hours, work location and any immigration work restrictions;
• recruitment procedures, training records and audit trails that existed at the relevant time; and
• evidence of any voluntary report, Unique Reference Number and cooperation with the investigation.

What happens if the notice is ignored?

If the penalty is not paid, objected to or appealed by the applicable dates, it can be registered with the civil court and enforced. The business may also be named in published Home Office data. Where an employer holds a sponsor licence, the facts behind a civil penalty can trigger separate compliance action, including possible suspension or revocation. The criminal offence under section 21 of the 2006 Act is separate and can apply where an employer knew or had reasonable cause to believe that a person was working illegally.

How NA Law Solicitors can help

NA Law Solicitors acts for employers at the referral and objection stages and handles County Court appeals for employers based in England and Wales. We review the notice, identify the legally available grounds, test the right-to-work evidence, check the penalty calculation and prepare the written case in a form that preserves the strongest arguments.

• Urgent review after a Home Office visit or notice
• Home Office civil penalty objections
• County Court appeals for England and Wales
• Preventive right-to-work compliance audits

Which right-to-work code applies in August 2026?

The code of practice that came into force on 13 February 2024 remains the operative code for current assessments, subject to the date-specific rules within it. The Home Office published a draft replacement on 30 June 2026 that is intended to take effect from 1 October 2026, subject to the necessary approval and commencement steps. A draft future code should not be treated as if it already governs a current notice.

Need urgent advice on a Civil Penalty Notice?

If you have received a Referral Notice, Information Request, Civil Penalty Notice or Objection Outcome Notice, contact NA Law Solicitors before the deadline expires. We will identify the correct stage, the evidence that matters and whether a challenge is legally and commercially sensible.

Book a civil penalty consultation or call 0203 524 5439.

Will my business details be published if I receive a civil penalty?

Not automatically when the notice is first issued. The Home Office’s quarterly named report currently lists certain employers only after objection and appeal rights have been exhausted, including employers who have not paid or are not making regular payments 28 days later, and employers with a second or further penalty. The current publication criteria and the status of any challenge should be checked before assuming that a business will be named.

Official legal sources

• Home Office code of practice on preventing illegal working, in force from 13 February 2024
• Home Office current and draft illegal-working codes of practice
• GOV.UK: penalties for employing illegal workers
• Immigration, Asylum and Nationality Act 2006, section 15
• Immigration, Asylum and Nationality Act 2006, section 17
• Supreme Court judgment: Akbars Restaurant [2026] UKSC 26

Last legally reviewed: 11 August 2026. This page gives general information only and is not legal advice on your specific position. Authorised and regulated by the Solicitors Regulation Authority – SRA No. 645049.