Employment Law Update: Taking over a business or service
contract? – check your workers!
Employers who take over a business or service contract may
now face penalties of up to £10,000 for each illegal worker they
take over.
The previous requirements to carry out checks regarding
eligibility to work in the UK were rarely enforced, however the new
regime will make it easier to enforce by the use of fixed penalties
to which an employer can then object.
Offences for employing illegal workers
There are now two new offences for employing illegal
workers:
1. The Criminal Offence: to knowingly employ an
adult who is subject to immigration control who does not have the
appropriate permission.
What's at risk? - Prison sentence of up to 2 years and / or
unlimited fine.
2. The Civil Offence: to employ an adult
subject to immigration control who does not have the appropriate
permission.
What's at risk? - Penalty of up to £10,000 per illegal worker
found.
TUPE Transfers and illegal workers
Previously an employer could claim a defence to having illegal
workers if they had inherited them unwittingly via a TUPE
transfer. This position has now changed and the Border and
Immigration Agency have stipulated that following a grace period of
28 days from the date of a TUPE transfer all employers must get
their house in order and ensure that all workers are covered by the
appropriate paperwork to confirm their status to work lawfully
within the UK.
Steps to take prior to a Transfer
Before buying a business or taking over a service contract:
- seek an indemnity in the Transfer for the civil liability which
transfers where there are workers without the necessary
paperwork;
- Identify what checks the former employer has undertaken to
ensure that their workers were operating with the appropriate
documentation.
How Mentor can help
A Mentor consultant can conduct an on-site audit of all your
personnel files to ensure compliance with this legal
requirement.
We can also provide professional advice via our Telephone Advice
Service.
Please read legal information.