The Home Office is cracking down on hospitality businesses as a common offender when it comes to immigrant workers, with fines of thousands of pounds. Robert Houchill and Radhika Patel have some advice
The Home Office, the government department responsible for immigration, has been tasked by the new government with upping the ante on the enforcement of immigration laws. Hospitality is seen by the Home Office as a sector where immigration breaches are disproportionately common and is a focus for enforcement action. Some recent hospitality targets of the Home Office have even been forced to close, such as Lusin, an Armenian restaurant in Mayfair.
Section 15 of the Immigration, Asylum and Nationality Act 2006 states that an employer may be liable for a civil penalty if they employ someone who does not have the right to undertake the work in question and that person commenced employment on or after 29 February 2008.
Companies that also hold sponsor licences take on various additional obligations and duties that they must ensure they perform, otherwise they risk running into trouble with the Home Office should failings be identified.
Hospitality businesses are facing tremendous pressure with recruitment, staff retention and costs. Against this backdrop, parts of the sector are getting caught out making immigration mistakes. The Home Office can issue business-breaking fines, totalling many thousands of pounds, to companies that are found to be employing people illegally in the UK. A shift to greater enforcement action has resulted in well-publicised immigration troubles for employers, particularly restaurants and hotels.
The very basics of the law require that employers hiring staff must make sure that new hires have the correct immigration permission to work and that restrictions on this permission are observed. For example, only certain student visa holders can work, and most of these students are restricted to up to 20 hours of work per week during term-time. Employers that get these basics wrong are taking a gamble.
Asides from the reputational harm and bad publicity that follows being found to have employed someone illegally in the UK, the fines that can be issued are so large that they can easily break a business and destroy its cashflow.
In February the fines for being found to have employed a person illegally were increased to £60,000 (which can be multiplied for each illegal worker). If a company is issued with a civil penalty and has a sponsor licence, the Home Office can take action to revoke the licence, which will impact sponsored visa holders, such as chefs and bar managers.
Robert Houchill (rhouchill@kingsleynapley.co.uk) is a senior associate and Radhika Patel (rpatel@kingsleynapley.co.uk) is a senior paralegal in the immigration department of law firm Kingsley Napley LLP.
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