Avoid UK Illegal Working Penalties: Right to Work Compliance 2026
Protect Your Business from Fines and Reputational Damage with Proactive UK Right to Work Compliance Strategies
The UK’s focus on immigration compliance intensified significantly in 2025 and is set to continue throughout 2026. The Home Office is operating with tougher enforcement, issuing record-level civil penalties, and carrying out more frequent and detailed compliance audits. Employers must take a proactive approach to meeting their Right to Work check obligations to reduce risk and avoid costly errors.
Increased Penalties for Employing Illegal Workers
This financial deterrent sits alongside a clear surge in enforcement activity. The latest Home Office transparency data shows:
- Illegal working visits increased by 48% year-on-year between 5 July 2024 and 28 June 2025 (10,031 visits vs 6,797 the year before).
- Arrests linked to those visits increased by 51% over the same period (7,130 arrests vs 4,734).
- 2,105 civil penalties were issued to employers between 5 July 2024 and 28 June 2025.
The penalties themselves have also increased sharply, with employers now facing fines of up to £45,000 per illegal worker for a first breach and up to £60,000 per illegal worker for repeat breaches.
For example, in the most recently published quarter (1 April to 30 June 2025), Immigration Enforcement issued 548 civil penalties with a gross value of £28.295m, relating to 712 illegal workers.
Alongside more workplace activity, the Home Office continues to publish quarterly reports naming employers associated with certain illegal working penalties (including repeat penalties and those not being paid).
The Bigger Picture
Penalties extend beyond fines:
- Reputational Risk: The Home Office's “name and shame” policy publishes the details of non-compliant businesses, damaging employer branding.
- Operational Disruption: Suspension or revocation of a Sponsor Licence can halt recruitment of overseas talent, affecting business continuity.
- Loss of Talent: Skilled workers and international hires are less likely to join organisations with poor compliance records.
For multi-site businesses, compliance challenges are even greater due to decentralised oversight.
Staying Compliant: A 5-Step Action Plan
1. Conduct Regular Audits
- Perform frequent checks on employee documentation to ensure all workers have the right to work in the UK.
- Schedule mock Home Office Compliance Audits to address potential issues before an inspection proactively.
2. Sponsor Licence Management
- If you hold a Sponsor Licence, actively manage it through the Sponsor Management System (SMS).
- Regularly update the Home Office on employee changes, such as salary adjustments, work locations, or job duties.
3. Ongoing Training
- Provide regular training for HR and recruitment teams to keep them updated on immigration laws, Right to Work procedures, and sponsor duties.
- A well-trained team reduces the likelihood of inadvertent non-compliance.
4. Seek Professional Guidance
- Work with immigration experts who can guide your business through complex legal requirements.
- Tailored advice helps address grey areas and ensures readiness for audits.
5. Stay Informed
- Subscribe to government updates and industry newsletters to stay ahead of regulatory changes.
- Proactively adapt to new rules, such as upcoming changes to biometric check requirements or digital right-to-work checks.
Key Changes for 2026
- Digital Compliance:
- The Home Office is expected to expand digital Right to Work checks, streamlining compliance but requiring businesses to adopt new verification systems.
- Enhanced Audits:
- More unannounced visits and remote inspections are planned in 2026, particularly targeting high-risk sectors like hospitality, construction, and care.
- Focus on Sponsor Licence Holders:
- Businesses employing sponsored workers are under closer scrutiny, with penalties for illegal employment tied to the risk of losing their licence.
Why Compliance Matters
Beyond avoiding penalties, compliance offers long-term benefits:
- Attract International Talent: A compliant business appeals more to skilled workers globally.
- Operational Continuity: Avoid disruptions caused by licence suspension or fines.
- Enhanced Reputation: Demonstrating a commitment to ethical hiring builds trust with employees, customers, and stakeholders.
How Immtell Can Help
At Immtell, we provide practical solutions to help businesses navigate the complexities of UK immigration compliance. From mock audits to Sponsor Licence management and team training, we ensure compliance becomes part of your operational culture.
Stay Ahead in 2026 with Robust Immigration Compliance
With penalties at record levels, there’s no room for error. Let Immtell guide your business with expert compliance solutions, from mock audits to sponsor licence management. Protect your business and reputation today—get in touch!
With penalties at record levels, there’s no room for error. Let Immtell guide your business with expert compliance solutions, from mock audits to sponsor licence management. Protect your business and reputation today—get in touch!
Further Reading
Right to Work Guidance: Supplementary Employment, Students
Updated Right to Work Guidance for Employers: Supplementary Employment and Students
Guide to Right to Work Checks in 2026
Navigating UK Right-to-Work Rules: Essential Guidance for UK Employers in 2025
All You Need to Know About Sponsor Licences
Guide to Hiring Global Talent: Everything You Need to Know About Sponsor Licences
How to Tell if Your Sponsor Licence Is at Risk
From missed reporting deadlines to weak HR processes—find out what could trigger a Home Office sponsor licence suspension or revocation.
Prepare for a Home Office Immigration Compliance Audit
Be Audit-Ready: Guidance for Navigating Home Office Compliance Audits
What Happens During a Home Office Compliance Audit?
What to expect during a Home Office Compliance Audit
Home Office Sponsor Licence Holders: Reporting Duties
A Guide to Complying with Home Office Sponsor Duties for Employers
Choose the Right UK Immigration Consultancy for Your Business
Finding the Right Immigration Partner for Your Business Success
How Much Do UK Business Immigration Consultants Charge?
A Guide to Understanding UK Business Immigration Consultant Charges in 2025
