2026 Guidance on How to Challenge your Civil Penalty Notice

Receiving a Civil Penalty Notice for illegal working can have serious financial and reputational consequences for your business. Penalties can reach up to £60,000 per worker, and in some cases may lead to further enforcement action, including the loss of your Sponsor Licence.

What is a Civil Penalty Notice for Illegal Working in the UK?

A Civil Penalty Notice is issued by the Home Office where an employer is found to have employed an individual who does not have the right to work in the UK. The regime is designed to ensure that employers carry out proper right to work checks before employment begins and continue to monitor compliance where required.

How much can a Civil Penalty Notice cost an employer?

Civil penalties can be substantial and are assessed based on a number of factors, including whether the breach is a first or repeat offence, the extent of cooperation with the Home Office, and whether compliant right to work checks were carried out. In serious cases, penalties can reach up to £60,000 per worker, although reductions may be available depending on the circumstances and mitigation presented.

Why do employers receive Civil Penalty Notices?

Civil penalties are often issued where employers have not carried out compliant right to work checks or have failed to retain proper records. In some cases, checks may have been conducted incorrectly, documents may have been accepted without sufficient verification, or follow-up checks may not have been completed for employees with time-limited immigration status. Even where there is no intention to breach the rules, procedural errors can still result in liability.

What happens to your Sponsor Licence if you receive a Civil Penalty Notice?

For businesses that hold a Sponsor Licence, a Civil Penalty Notice can have wider implications. The Home Office may initiate compliance action, which can result in licence suspension or revocation. This can disrupt your ability to sponsor workers and may affect your reputation as a compliant employer. It is therefore essential to address any penalty promptly and ensure that internal systems are strengthened.

Can a Civil Penalty Notice be challenged or appealed?

Yes. A Civil Penalty Notice can be challenged, but the process is subject to strict statutory requirements. It typically involves a two-stage process, beginning with a formal objection to the Home Office, followed – if necessary – by an appeal to the court.

How does the challenge process work?

The first step is to submit a formal objection to the Home Office within the prescribed time limit. This stage is critical, as it allows the employer to challenge liability, rely on a statutory excuse where applicable, or dispute the level of the penalty imposed. The Home Office will then review the objection and issue a formal outcome. Depending on the circumstances, the penalty may be cancelled, reduced, maintained, or in some cases increased.

Under section 16 of the Immigration, Asylum and Nationality Act 2006, an objection may be raised on the following grounds:

•  the employer is not liable for the penalty;
• a statutory excuse applies; or
• the amount of the penalty is excessive.

The objection must be submitted in writing and should identify the penalty notice reference; explain the legal and factual basis of the challenge; and include any supporting evidence. A carefully structured response can have a significant impact on the outcome and the financial exposure faced by the business.

What happens if the objection is unsuccessful?

Following review, the Home Office will issue an Objection Outcome Notice confirming whether the penalty is cancelled, reduced, increased, or maintained.

If the objection does not resolve the matter, the employer may have the right to appeal to the court. In England and Wales, appeals are brought before the County Court, while in Scotland they are heard in the Sheriff Court. The court has the power to reconsider the matter in full, including both liability and the level of the penalty.

What will the court consider?

The court will consider whether the employer is legally liable for the penalty, whether a statutory excuse has been established, and whether the amount of the penalty is appropriate in the circumstances. These cases are often involve detailed consideration of right to work procedures, employment arrangements, and the factual context in which the alleged breach arose.

How can Angelov Solicitors help with a Civil Penalty Notice?

The challenge and appeal process is subject to strict deadlines and procedural requirements. Decisions made at an early stage particularly how the objection is prepared and evidenced can have a significant impact on the outcome. We provide comprehensive, solicitor-led support to employers facing Civil Penalty Notices. Our work typically involves reviewing the notice and underlying allegations in detail, assessing whether a statutory excuse is available, and advising on the most appropriate strategy to challenge or reduce the penalty. We will prepare detailed representations and assist with administrative challenges or court appeals.

If you have received a Civil Penalty Notice or are concerned about your compliance position, we recommend seeking legal advice as soon as possible. Early intervention can make a significant difference to the outcome.

Contact Angelov Solicitors today to arrange a consultation and protect your business.