Have you received a Home Office civil penalty notice? Our immigration experts explain your options for challenging fines, reducing penalties and protecting your business.
Receiving a Home Office civil penalty notice can be alarming. However, if you act quickly, you may be able to reduce or challenge the penalty. Businesses have 28 days to pay or appeal a civil penalty, so understanding your options from the outset is essential.
The Home Office continues to take a robust approach to illegal working. According to UK Visas & Immigration's latest quarterly report, 329 businesses were issued with civil penalties worth £18.7 million in just three months.
Illegal working penalties remain a major enforcement priority
The Home Office civil penalty scheme is designed to ensure employers carry out the correct Right to Work checks before employing staff.
According to UK Visas & Immigration's latest quarterly report (published 7 July 2026), 329 businesses were found to have employed illegal workers between 1 October and 31 December 2025, resulting in £18.7 million in civil penalties.
These figures demonstrate that illegal working remains a key focus of government enforcement.
What is a civil penalty notice?
A civil penalty notice is issued where the Home Office believes an employer has employed someone who does not have the right to work in the UK, contrary to section 15 of the Immigration, Asylum and Nationality Act 2006.
This can apply whether an employer:
knowingly employed an illegal worker; or
unknowingly employed someone because the correct Right to Work checks were not carried out.
What are the consequences?
The penalties can be significant.
Employers who fail to carry out the correct Right to Work checks may face fines of up to £20,000 per illegal worker.
Where an employer knowingly employs an illegal worker, or had reasonable cause to believe they did not have permission to work in the UK, the consequences are far more severe and can include:
unlimited fines
up to five years' imprisonment
suspension or revocation of a sponsor licence.
What should you do if you receive a civil penalty notice?
If you receive a notice, don't ignore it.
You have 28 days to either pay the penalty or challenge the Home Office's decision.
The first step is usually to submit a formal objection to the Secretary of State. If successful, the penalty may be reduced or withdrawn.
Can you challenge a civil penalty?
You may be able to challenge the notice if, for example:
The workers were not your employees
For example, the individual may have been working as an independent contractor rather than an employee.
The Home Office acted outside its powers
This may include situations where evidence was obtained unfairly or beyond the Home Office's statutory powers.
Relevant mitigating factors were overlooked
The Home Office should consider factors such as:
your cooperation during the investigation
the compliance measures your business already had in place
whether this is a first offence.
You have a statutory excuse
Under section 15(3) of the Immigration, Asylum and Nationality Act 2006, employers may avoid liability if they can demonstrate they carried out the required Right to Work checks.
A successful statutory excuse may also prevent your organisation from being publicly named by Immigration Enforcement, helping to protect your reputation.
What happens if your objection is rejected?
If the Home Office rejects your objection, you can appeal to the court within 28 days of the final decision.
In some cases, matters can be resolved before a hearing if the Home Office responds positively to a well-prepared Pre-Action letter explaining why the penalty should not have been issued.
Speak to our immigration solicitors
A civil penalty can have serious financial, operational and reputational consequences for your business. Seeking legal advice early gives you the best opportunity to protect your position.
Our immigration solicitors regularly advise employers on Right to Work compliance and civil penalty notices, helping businesses challenge penalties and strengthen their compliance procedures.
If you would like advice, contact our team on +44 (0)345 073 9900 to speak to one of our solicitors.