A clerical oversight led to a severe financial blow when the Home Office imposed a £45,000 civil penalty on the owner of a fish and chip shop in Surrey after a worker had used a forged identity to secure employment.

The employee, hired in early 2023, presented convincing documentation - including photocopies of a British passport, a National Insurance number, and student loan paperwork. The documents were checked and passed during payroll set-up, but the original passport was never examined, allowing a forged identity to slip through.

Mark Sullivan, the owner of Big Fry Fish & Chips in Egham, emphasised he had acted in good faith, noting the employee held a UK bank account, studied at university, and paid student loans.

“The owner admitted it was a ‘clerical error’ and cooperated fully, but described the experience as ‘terrifying’ and the outcome as ‘devastating’ for his business,” said Chris Dewey, Director and employment law Solicitor at Ward Gethin Archer Solicitors.

“The Home Office’s position is firm: photocopies or other supporting documents aren’t sufficient proof of right to work; there must be a full check on original identity documents or a compliant digital ID check. These are the only methods that will provide a legal safeguard - known as a ‘statutory excuse’ - if illegal working is discovered later but you are able to show checks were carried out correctly.”

Many small business owners argue that right-to-work checks are complicated and punitive. The Federation of Small Businesses has called for proportionality in enforcement, warning that blanket penalties can cripple businesses who make a genuine mistake.

Since July 2024, penalties have tripled. For first-time breaches, no matter the size of the company, fines can reach £45,000 per illegal worker, with repeat offences carrying penalties of up to £60,000. Alongside, enforcement action against illegal working has surged, with more than 10,000 visits between July 2024 and June 2025, resulting in 7,130 arrests, an increase of around 50% compared with the previous 12 month period, and more than 2,000 civil penalties handed to businesses found to be violating immigration rules.

Initially hit with a £45,000 fine, chip shop owner Sullivan was offered a notional £5,000 reduction for supporting the investigation, with a discount of 30% if payment was made within 21 days, resulting in a final bill of £28,000.

“Knowing the right to work rules is important for every business, but for those operating in hospitality, retail, or franchising, who are likely to be recruiting to fill seasonal surges, it’s vital that procedures are always followed, however busy the business,” Chris added. “Checking the right-to-work status of every hire isn’t optional, it’s a legal duty. A simple oversight can result in massive penalties that could sink a small business.

“And if there are any doubts about historical right to work checks, I’d recommend a two-pronged action plan: putting training in place for any employee who will be conducting checks in future, and a full audit of past hires, to validate and put right any potential issues, a process which in itself will help to get training underway.”

Key takeaways for employers:

• Always inspect original ID documents and take a photograph, showing it in your possession, as well as recording the details and holding a dated copy.
• Where possible, use the Home Office Employer Checking Service or the Right to Work digital check service if a share code is offered.
• Fully log all checks and keep tied to individual personnel files for audit readiness.
• Ensure all staff involved in recruitment understand the penalty scale - up to £45k per worker on a first breach.
• Stay alert to frequent changes in immigration enforcement and Home Office guidance.

Useful links:

Government advice on right to work

Recognising fraudulent identity documents, Home Office, July 2025