1. Increased Home Office Enforcement of Illegal Working

The Home Office’s approach to illegal working enforcement has hardened significantly over the past year. Civil penalties have increased, compliance visits are more frequent, and there is closer linkage between civil penalties, sponsor licence action and wider compliance investigations.

Against that backdrop, employers facing a Civil Penalty Notice (CPN) must make early and strategic decisions. One option frequently relied upon is the Faster Payment Option (FPO), which offers a reduced penalty in exchange for early payment. While attractive, the FPO carries important legal and procedural consequences that should not be overlooked.

This article explores how the Faster Payment Option operates, its advantages and disadvantages, and the limitations on accessing the lower rate in practice.

2. The Faster Payment Option (FPO) Explained

The Faster Payment Option is available once the Home Office has issued a Civil Penalty Notice for illegal working. Where the employer accepts liability for the breach and pays the reduced penalty within the specified timeframe (typically within 21 days), the Home Office will apply a 30% reduction to the total penalty amount.

The option is offered at the point of service of the Civil Penalty Notice and is intended to incentivise swift resolution and minimise further enforcement action. The CPN will contain the deadline by which the payment must be made to benefit from the FPO reduction. 

In the event that a penalty recipient utilises the Objection process, a new Faster Payment Option deadline will be set in any negative Objection Outcome Notice. 

3. Why Employers Are Increasingly Using the FPO

Recent enforcement trends include higher starting penalty bands, stricter treatment of alleged failures in right to work checks including digital and follow-up checks, and a greater willingness by the Home Office to pursue full penalties where employers miss procedural deadlines.

In parallel, the Home Office has shown little appetite for flexibility on payment timescales or post-decision engagement once the Faster Payment Option window has closed.

As a result, employers are increasingly tempted to accept the FPO to contain financial exposure quickly. However, this must be balanced against the risk of conceding a penalty that could have been reduced further, or avoided entirely, through objection or appeal.

It should also be noted that accepting responsibility for a CPN can affect other areas of your business, such as sponsor licence compliance and alcohol licensing. Therefore, it is recommended that employers seek appropriate legal advice when considering whether to utilise the FPO.

4. Advantages of the Faster Payment Option

Immediate Reduction in Financial Liability

The 30% reduction can be significant, particularly where penalties are imposed for multiple workers or where the employer is treated as a repeat offender.

Procedural Finality

Payment under the FPO brings the matter to an end without further correspondence, objections or litigation. 

Reduced Exposure to Escalation

In some cases, early resolution may reduce the risk of prolonged scrutiny, particularly where the employer is not a sponsor or holds a sponsor licence with an otherwise good compliance record.

Greater Cost Certainty and Predictability

Employers avoid the legal costs and uncertainty associated with objections or County Court appeals.

5. Key Conditions for Using the Faster Payment Option

The availability of the Faster Payment Option is subject to stipulations: 

• Payment must be received in full within the stated timeframe. Late payment almost invariably results in loss of the discount.
• The reduced amount must be paid as a single lump sum – it is not possible to utilise the FPO and set up an instalment payment scheme of the fine. 

6. When the Faster Payment Option May Be Appropriate

The Faster Payment Option may be appropriate in the following circumstances where:

• the breach is clear and uncontested;
• right to work checks were not compliant / carried out correctly, using the correct process;
• the penalty calculation is accurate; and
• speed and certainty are priorities for the company facing the CPN. 

However, employers should be cautious about rushing into paying the FPO before fully considering their options in challenging the CPN itself. It is advisable for employers facing CPNs to seek appropriate legal advice to determine the merits in challenging a CPN, either in terms of its application generally, or the amount payable.

Given the Home Office’s increasingly rigid enforcement stance, early legal analysis is often decisive in determining whether the FPO represents value or unnecessary concession.

7. Conclusion: Evaluating the Faster Payment Option Carefully

The Faster Payment Option can offer a pragmatic route to resolution in clear-cut cases. However, in the current enforcement climate, it should not be viewed as a default response to a Civil Penalty Notice, particularly if there are other aspects of the business to consider i.e. a sponsor licence or other licences. 

Employers should assess carefully whether accepting a reduced penalty outweighs the potential benefits of challenge – particularly where errors or statutory defences may exist.

8. Contact Our Immigration Barristers

For expert advice and assistance in relation to right to work checks and the right to work, contact our immigration barristers in London on 0203 617 9173 or via the enquiry form below.

9. Frequently Asked Questions

What is the Faster Payment Option (FPO)?

The Faster Payment Option is a mechanism offered by the Home Office following the issue of a Civil Penalty Notice for illegal working. It allows an employer to benefit from a 30% reduction in the penalty amount if liability is accepted and payment is made in full within the specified timeframe.

How much is the Faster Payment Option reduction?

The Faster Payment Option provides a 30% reduction on the total civil penalty amount. 

How long do employers have to use the Faster Payment Option?

The deadline for using the Faster Payment Option is set out in the Civil Penalty Notice and is typically 21 days from the date of service. If the employer submits an objection and it is refused, a new Faster Payment Option deadline will usually be set in the Objection Outcome Notice.

Can employers challenge a Civil Penalty Notice and still use the Faster Payment Option?

Yes. If an employer submits an objection and it is unsuccessful, the Home Office will generally offer a further opportunity to use the Faster Payment Option, subject to a new payment deadline. However, once that deadline passes, the discount will no longer be available.

Can the Faster Payment Option be used with an instalment plan?

No. The reduced amount under the Faster Payment Option must be paid in full as a single lump sum. Employers cannot combine the Faster Payment Option with an instalment payment arrangement.

Does paying under the Faster Payment Option mean accepting liability?

Yes. Using the Faster Payment Option involves accepting liability for the breach. This may have wider implications beyond the financial penalty, including potential consequences for sponsor licence compliance and other regulatory or licensing matters.

Is the Faster Payment Option always the best option?

No. While the Faster Payment Option can be appropriate in clear-cut cases, it should not be treated as a default response. In some cases, penalties can be reduced further, or avoided entirely, through objection or appeal, particularly where statutory defences or calculation errors exist.

Should employers seek legal advice before using the Faster Payment Option?

Yes. Given the financial, legal, and regulatory implications of accepting a civil penalty, employers are strongly advised to seek specialist legal advice before deciding whether to utilise the Faster Payment Option or challenge the Civil Penalty Notice.

This article was co-written by Lucy Katko and Georgina Griggs