Employment agencies could face a fine of up to £10,000 for any illegal worker they have negligently hired, or an unlimited fine and possibly a jail sentence for illegal workers they knowingly hired, under new measures to be introduced by the Home Office in February.

A spokesman for the Home Office told Recruiter: “Where an employment agency simply recruits people to be employed by a client, it would be the client’s responsibility, but where the agency employs people and providers services to a user, then the agency is responsible.”

This would include any temporary agency, where the employee’s contract is with the agency itself.

The spokesman said: “Where there is any doubt about the employment relationship we would suggest both the employment agency and the client carry out checks.”

This is being introduced alongside measures to make it easier to check whether an individual is entitled to work in the UK. Home Secretary Jacqui Smith said: "Together with the introduction of compulsory identity cards for foreign nationals next year there can be no excuse for not checking the identity of those applying for jobs.”

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