Heftier right to work penalty 'not making a difference'

Umbrella companies and recruitment agencies are among the UK employers that have had to fork out almost £30million for not doing ‘right to work’ checks properly, fresh figures show.

The checks, which many new contractors undergo, were strengthened in 2014 by a requirement from the Home Office for a worker to have their identity verified face-to-face.

But to try to head off employers from flouting such work eligibility checks, the government increased the maximum fine for non-complaint employers from £10,000 to £20,000.

Despite the penalty doubling, a total of 1,974 Notification of Liability notices for a civil penalty have been issued to employers, equating to £29.6m in penalties (in the last year).

In comparison, between 2013 and 2014, there were 2,148 NOLs issued to employers for employing people illegally.

“At first glance the figures suggest that the government’s move to double the maximum penalty from £10,000 to £20,000 has paid off”, reflected Giant, which obtained the figures.

“However the amount has only reduced marginally and more importantly, if we look at the statistics over a three-year period, the number has actually increased by 704 since 2012.”

In line with Giant’s analysis, the figures it obtained under the Freedom of Information Act show that between 2012 and 2013, just 1,270 NOLs were issued.

The payroll firm’s Matthew Brown said the increase of 704 (against a decrease of 174), was “significant,” partly as the bigger fine for illegal working was meant to deter non-compliance.

He added: “While we welcome any attempt by the government to crackdown on firms employing illegal workers it appears that a lot more needs to be done to ensure this practice is stamped out once and for all.

“While the changes made to the maximum penalty a company can receive are certainly a step in the right direction they have, as yet, failed to make any significant changes.”

Editor’s Note: Related Reading –

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