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IMPACT – HIGH
What is the change? The U.K. Home Office has released a “draft code of practice on preventing illegal working” that updates rules regarding civil penalties on employers who employ undocumented workers.
What does the change mean? The draft code contains some sweeping changes to right-to-work checks required by employers and dramatically raises the maximum financial penalties for noncompliance.
Background: The draft code of practice for preventing illegal working details the Home Office’s civil-penalty scheme for employers and updates the code from February 2008. The draft code has been approved by the secretary of state and presented to Parliament.
These are the major changes:
BAL Analysis: The changes in the draft code generally reduce the burden on employers in conducting right-to-work checks. In particular, the elimination of annual follow-up checks of employees on temporary stay visas will reduce administrative headaches for employers. However, the substantial hike in maximum penalties for employing workers illegally makes it critical for employers to correctly perform the checks and get their internal procedures in place.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact firstname.lastname@example.org.
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