Battered by the rules: Chippie owner pays the price for hiring error

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 Esther Marshall, employment law specialist at Essex-based Mullis & Peake LLP.

“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.

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.

This is not legal advice; it is intended to provide information of general interest about current legal issues.

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