Businesses employing workers who are not legally allowed to work in the UK face huge fines or even a jail sentence, experts have warned.

Changes coming into force on 29 February mean employers face civil penalties of £10,000 for each illegal worker they employ, while the introduction of a new criminal offence means a prison sentence of two years is possible.

Under the updated Immigration, Asylum and Nationality Act, owners who take on migrant workers will also have continuing responsibility to check their ongoing work entitlement.

Rachael Heenan, from law firm Beachcroft, called on employers to avoid falling foul of the new laws by regularly reviewing visa expiry dates and personnel files of employees who do not have an automatic right to work in the UK.

“We would also suggest that all companies implement an early warning system to prevent the need for last-minute action on these cases,” she added.

“It is a criminal offence to employ someone who doesn’t have the right to work in the UK and in such cases employers should take immediate steps for dismissal.

“Where possible, employers should comply with statutory dismissal procedures. Prepare a letter inviting the employee to a meeting, detailing the basis for disciplinary action and indicating that a possible outcome of the meeting is dismissal.

“Always allow the employee to be accompanied to the meeting and should dismissal become necessary, inform the employee in the meeting and follow up with a letter of confirmation offering the right to appeal.”

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