REWARD INSIGHT
Employing illegal workers – the net tightens
Helen Hargreaves MSc FCIPPdip, CIPP’s associate director of policy and research, brings us up to date with frequently changing legislation
I n the second half of 2015 over £21 million in penalties were issued to United Kingdom (UK) employers for hiring illegal workers. Immigration and the employment of workers from abroad has been a political hot topic for many years and it has only intensified following the outcome of the European Union referendum earlier this year. However, regardless of political preferences, illegal working can result in abusive and exploitative behaviour, the mistreatment of illegal migrant workers, tax evasion and poor housing conditions. It can also undercut legitimate businesses and have an adverse impact on the employment of people who are lawfully in the UK. In an ongoing bid to counteract this, the Immigration Act 2016 (‘the 2016 Act’), which came into effect on 12 July, introduces new sanctions on illegal workers and rogue employers, prevents illegal migrants from accessing services and includes new measures to make it easier to enforce immigration laws and remove illegal migrants. With penalties for non-compliance, a concept we are very familiar with in payroll, there are very real incentives for all employers to ensure that the workers
on or after 29 February 2008, the 2006 Act replaced section 8 of the Asylum and Immigration Act 1996. Employers have a duty to carry out prescribed document checks on people before employing them to ensure they are lawfully allowed to work. These checks must be repeated for those who have time-limited permission to work in the UK. Section 15 of the 2006 Act introduced civil penalties for employers if they employ someone who does not have the right to undertake the work in question. On 16 May 2014, changes came into force which strengthened and simplified the civil penalty scheme for employers. This included changes to the document checks employers were required to undertake. The 2016 Act brings changes to earlier legislation. Section 34 of this Act amends the Immigration Act 1971 by inserting a new offence of illegal working. Section 35 amends section 21 of the 2006 Act by introducing the criminal offence of employing an illegal worker. What this means in practice From 12 July 2016, an employer commits an offence if they employ an illegal worker and know, or have reasonable cause to
they employ have the right to work in the UK. Whilst primarily seen as a human resources (HR) function, it is we in payroll who actually pay those workers and we have a responsibility to ensure that the workers we are paying have a legal right to work. ...new sanctions on illegal workers and rogue employers... What the law says Employing workers from abroad is not a new concept and, as you might expect, there have been several Acts passed over the years which affect the employment of migrant workers, some elements of which remain in force and some of which have been amended or superseded by subsequent laws. The law on preventing illegal working is set out in sections 15 to 25 of the Immigration, Asylum and Nationality Act 2006 (‘the 2006 Act’) and sections 24 and 24B of the Immigration Act 1971. For employments which commenced
| Professional in Payroll, Pensions and Reward | November 2016 | Issue 25 32
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