As Tesco faces possible fines for employing foreigners for longer than their visas allowed, how can retailers avoid inadvertently employing illegal workers?

Tesco is facing fines after officials from the UK Border Agency raided the grocer’s online fulfilment centre in Croydon, south London last month. Around 20 foreign students of 11 different nationalities were found to have been working for significantly longer than their visas allowed.

Staff working longer than their visas permit is more common in the leisure sector, but the issue is beginning to emerge more frequently among retailers in major cities, especially those that employ foreign students, according to Ben Williams, barrister at Kings Chambers and an expert in employment law and regulation. Anecdotally, 2012 seems to be a boom year for the number of foreign nationals working in the UK, particularly in London, he adds.

Employers should not be discouraged from employing non-UK nationals however. Some are automatically entitled to work on similar terms as UK citizens but others may be restricted on how long they can work and in which capacity, Williams explains.

“Retailers should take a zero tolerance approach to illegal working,” he says. “Employing anyone illegally can be costly, with civil penalties up to £10,000. Knowingly employing an illegal worker is also a criminal offence and the person responsible could face up to two years in prison and an unlimited fine.”

However, staying clear of employing foreign nationals altogether on fears of falling foul of relevant regulations carries the risk of breaching other employment laws such as the Equality Act.

“Keeping good records and carrying out proper checks is the most sensible route for retailers to take, starting by asking all applicants to sign that they have answered all questions on the application form honestly,” advises Williams.

At the recruitment stage, retailers should develop a checklist for interviewing all foreign nationals and this should be followed rigorously.

They should begin by asking for visual ID and a copy of all relevant work permits. The UK border Agency publishes two lists (A and B) of documents that disclose the eligibility to work in the UK.

“Make sure that paperwork is genuine, check expiry dates and signatures, consider whether the photo matches and that the date of birth seems consistent with the person’s appearance,” adds Williams. “It is important to keep clear copies of all relevant paperwork and ID documentation. Websites such as www.documentchecker.com can be helpful in this regard.”

In addition, retailers should review all relevant documentation every six months, carry out a full ID audit once per year and set electronic reminders for the expiration of all visas.

Williams concludes: “By reporting any illegal workers discovered, retailers can do their bit to deter the culture from spreading.”