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We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA

SMEs employing staff must check their records to be on the right side of the law

Employers and landlords should pay strict attention to the rule requiring them to check the right to work in the UK of workers and the right to reside for lodgers/tenants respectively, as the government has announced plans to dramatically increase the civil penalties for non-compliance.

Maximum penalties for employers will triple from £15,000 to £45,000 on their first breach and from £20,000 to £60,000 for subsequent breaches.

Maximum penalties for landlords will increase from £80 per lodger to £5,000 per lodger on their first breach, and from £500 per lodger to £10,000 per lodger for subsequent breaches.

For other occupiers, maximum penalties for landlords will increase from £1,000 per occupier to £10,000 per occupier for a first breach and from £3,000 to £20,000 per occupier for subsequent breaches.

Employers and landlords should ensure they properly check the right to work or right to reside of workers or lodgers/tenants respectively, or risk having to pay substantially increased penalties.