The UK hospitality sector is undergoing a significant shift in its employment landscape, driven by increasingly assertive government action on illegal working and sweeping immigration reforms. With the Home Office expanding both the scope and frequency of enforcement, employers face a growing challenge: staying ahead of regulatory developments, mitigating risk, and safeguarding their operations.
Hospitality has long been under the microscope. Its reliance on overseas talent, high staff turnover, and casual labour models make it particularly vulnerable to immigration scrutiny. Yet recent developments suggest a marked escalation in enforcement activity. In a single day, the Home Office carried out 159 illegal working visits, resulting in 105 arrests at commercial premises - including restaurants. This is more than a headline; it is a clear signal that enforcement priorities have shifted, and no business is beyond reach.
The financial consequences for illegal working are significant and can have damaging impact. Employers found to be engaging illegal workers face civil penalties of up to £60,000 per worker. In addition to these fines, businesses risk being publicly named on the Home Office website, exposing them to reputational damage and operational disruption. For those holding a UK sponsor licence, the stakes are even higher. A breach could result in licence revocation, severely limiting the ability to recruit and retain international talent.
Enforcement efforts are also becoming more sophisticated. The Home Office has begun forming partnerships with major delivery platforms to tackle illegal working, enabling data sharing and introducing enhanced security measures such as facial verification and fraud detection tools. Proposed legislative changes will further broaden liability, extending it to contingent workers, including agency staff, contractors, and outsourced personnel. This makes it imperative for hospitality businesses to review supplier contracts and onboarding protocols with renewed diligence.
The risks associated with illegal working are multifaceted. Financial penalties are steep, legal breaches can disrupt operations, and reputational harm can erode customer trust and brand value. It is no surprise, then, that immigration is climbing the risk and compliance agenda for hospitality employers. But what should they be doing now?
Clear protocols
A proactive approach is essential. Employers must establish clear escalation protocols for responding to Home Office communications, whether that be an information request, a civil penalty notice, or an unannounced site visit. Front-of-house staff should know who to contact, and those liaising with authorities must also be well-versed in right to work requirements and data privacy obligations. Increasingly, we’re seeing businesses engaging third-party experts to manage this correspondence and ensure consistency.
Equally important is the robustness of right to work checks. These must be completed before employment begins, and visa expiry dates should be tracked and monitored. Employers must also ensure compliance with visa work restrictions, such as the 10 or 20-hour weekly limits applicable to student visa holders.
A comprehensive audit of right to work documentation is no longer optional. Employers should verify that all UK employee files are complete and that sponsored workers’ records meet Home Office requirements. External audits can provide independent assurance and help identify gaps that internal reviews may overlook, strengthening processes and future-proofing compliance.
Contingent workers present a unique challenge. Employers must review visa permissions for non-direct hires, particularly self-employed individuals. For example, student visa holders are not permitted to undertake self-employment. Contracts with third-party labour providers must reflect immigration compliance standards and allocate risk appropriately.
Finally, training must be ongoing and inclusive. Immigration compliance is not solely the responsibility of HR, it is a shared obligation. Line managers, supervisors, and anyone involved in hiring must be equipped to carry out checks and respond effectively to enforcement action. Regular, practical training ensures that staff remain confident and informed.
The reality is that this is likely only the beginning. Immigration enforcement in the hospitality sector is intensifying, and the regulatory landscape is becoming more complex. Employers who act now - by auditing processes, training staff, and engaging with policy - can not only avoid civil penalties but build resilience in an increasingly demanding environment.
Corrine Bentham is principal associate at Eversheds Sutherland