What is the fine for not checking a subcontractor's right to work?
From 1 October 2026, if a subcontractor you took on has no right to work in the UK and you did not do the official check before they started, the Home Office can fine you up to £45,000 per worker, or up to £60,000 for a repeat breach within three years. A correct check done before day one is your legal defence, called a statutory excuse.
Is the fine per worker or per business?
Per worker. The fine is worked out for each illegal worker found. Two unchecked subcontractors with no right to work on the same job means two fines, so a first breach could start at £90,000.
The fine applies to subcontractors taken on from 1 October 2026. The date that counts is when the arrangement was agreed, not when the work starts, and there is no grace period while people get used to the new rules.
How does the Home Office work out the fine?
The code of practice sets a starting point, then takes money off for things you did right:
- Starting point: £45,000 per illegal worker for a first breach, or £60,000 if you were found employing illegal workers in the last three years.
- Reported it yourself: £5,000 off per worker if you rang the Home Office employers' helpline (0300 790 6268) and got a Unique Reference Number before they found the worker.
- Co-operated: another £5,000 off per worker if you actively helped the investigation.
- Good checking habits: on a first breach only, if you did both of the above and can show effective right to work practices (proper checking systems, checks done the same way every time, records kept, and a history of getting it right), you get a formal Warning Notice instead of a fine. A Warning Notice counts against you if it happens again within three years.
Point 4 is the one most small firms miss: it needs records. A business that never checked anyone has nothing to show.
Can the fine be reduced?
Yes. The code of practice takes £5,000 per worker off if you reported the suspected illegal worker to the Home Office and got a Unique Reference Number before they found them, and another £5,000 per worker if you actively co-operated with the investigation. If you pay within 21 days on a first penalty, the Faster Payment Option takes off another 30 per cent.
You can also ask to pay in instalments, or object in writing by the deadline in the notice if you think you are not liable, you had done the check, or the amount is wrong. After that you can appeal to the county court.
A worked example
The kitchen job. A small building firm takes on two self-employed plasterers for a kitchen refit in November 2026, agreed by phone, with no right to work checks. A Home Office visit finds one of them has no right to work. The other one does.
There is one illegal worker, so one fine. It is the firm's first breach, so the starting point is £45,000. The firm did not report anything beforehand, so no £5,000 off for that. It answers every question and hands over its paperwork, so £5,000 comes off for co-operating: £40,000. Paying within 21 days under the Faster Payment Option takes 30 per cent off: £28,000.
Compare: if the firm had checked both plasterers' share codes on gov.uk before day one and kept the results, it would have seen before day one that one of them had no right to work and not taken him on. No illegal worker, no fine. And a correct check on file is a statutory excuse even if someone later turns out to have fooled it with a false document the firm could not reasonably have spotted.
What else can happen besides the fine?
The code of practice lists further consequences for the business that took the worker on directly. In serious cases this can mean a criminal conviction with up to five years in prison and an unlimited fine, the business being closed under a court compliance order, disqualification as a director, losing the right to sponsor migrant workers, and seizure of money earned from illegal working. An unpaid fine is registered with the civil court and can be enforced straight away.
If you use a gang boss or labour supplier, the fine can sometimes move up the chain to you. The guide says it would not normally fine more than one business for the same worker. See labour-only subcontractors and gangs for the written statement that protects you.
Will I be fined if my subcontractor has the right to work but I did not check?
The fine is for taking on someone who does not have the right to work. If the person does have it, there is no illegal worker to fine you for. The risk is that without a check on file you have no defence if it turns out you were wrong, so check everyone before they start.
How to avoid the fine, step by step
- Check before day one, every subcontractor you take on yourself, with a share code on gov.uk/view-right-to-work or their original documents.
- Save the result with the date you checked it.
- Diary the recheck if their permission runs out, and check again before it ends.
- Keep the records for as long as the work lasts and for 2 years after.
- If something looks wrong, ring the Home Office employers' helpline and ask for a Unique Reference Number.
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