Financial Update - Autumn 2012

UK Border Agency gets tough on employers

UKBAEmployers have been put on notice that the UK Border Agency (UKBA) is cracking down on illegal workers in the UK and is holding employers accountable for any failure to check their employees’ visa status.

The UKBA has just published new information and guidance for employers and expects full compliance. Whether your organisation employs highly paid executives or part-time students, it’s important to be fully aware of these employer responsibilities. Even top companies such as Tesco are not immune, and the resulting bad publicity may be more damaging than the penalties that are imposed.

During a recent UKBA investigation, around 20 foreign students of 11 different nationalities were found working between 50 and 70 hours a week at one of Tesco’s warehouses. The current UK visa regulations allow foreign students to work only 20 hours a week during term time.

The operation was part of an ongoing campaign to tackle visa abuse, which has resulted in over 2,000 offenders being deported in just five months. The potential fine for the employer is £10,000 for each illegal worker, with criminal prosecution also a possibility. So it’s important to ensure that all of your employees have the right to work in the UK and that you comply with any restrictions.

A potential employee’s documents should be checked before they are employed. If a person has a time limit on their right to work, then the document check should be repeated at least every 12 months. Where there are restrictions as to the type of work that a person can do, or the number of hours they can work, these work conditions must not be breached.
The UKBA website provides detailed guidance for employers. As Tesco has found out, students can be a particular problem. The rules have changed several times in recent years, and will vary according to when a visa was issued.

EU pushes quota for women on boards

At the opposite end of the pay scale, listed companies could face fines and other sanctions under EU plans to ensure that 40% of non-executive board seats are occupied by women – compared to less than 14% at present.

The proposal has yet to be formally introduced, and is being strongly opposed by the UK and several other countries. It would apply to employers with more than 250 employees or £40 million of turnover and would be operative by 2020.