Construction hiring under scrutiny as firms rack up £585,000 in fines

By Danny BallPublished On: June 19th, 2026Categories: Top Stories

Construction employers are being urged to strengthen recruitment and compliance procedures after new analysis found building and civil engineering firms were fined more than £585,000 for employing illegal workers.

Analysis of the latest Home Office illegal working civil penalties data by Personnel Checks found that 10 construction-related businesses received fines ranging from £40,000 to £120,000 for breaches of right-to-work regulations.

The findings come as contractors across the UK continue to grapple with labour shortages and skills gaps, with many businesses relying on subcontractors, agency workers and temporary labour to maintain project delivery.

Construction firms face significant penalties

According to the data, the largest penalty was issued to M A Builders London Ltd, which was fined £120,000.

Other notable penalties included:

Bhutta Builders Ltd – £90,000
K.S. Building Services Solihull Limited – £80,000
Several other construction, civil engineering and building firms receiving fines between £40,000 and £45,000.

The Home Office register typically includes employers that have failed to pay civil penalties within 28 days after exhausting appeals or businesses that have received repeat sanctions for illegal working offences.

Labour shortages increase compliance pressures

The latest figures highlight the recruitment challenges facing the construction sector, where demand for skilled labour continues to outstrip supply.

Separate Home Office enforcement data shows there were 290 illegal working visits to construction businesses during 2025, resulting in 588 arrests.

While enforcement activity remains more concentrated in sectors such as hospitality and retail, the latest data suggests construction employers continue to face substantial compliance risks if recruitment checks are not properly managed.

Personnel Checks said employers should view compliance as part of broader safer hiring practices rather than simply a legal obligation.

Recruitment checks should match site safety standards

Jack Mellor, CEO of Personnel Checks, said: “Construction employers operate in a challenging recruitment environment where projects often depend on subcontractors, temporary workers and agency staff. However, pressure to fill vacancies quickly should never come at the expense of proper hiring checks.

“These penalties highlight why robust safer hiring practices are so important. Right-to-work checks are a legal requirement, but employers should also consider wider measures such as identity verification, DBS checks where appropriate, reference checks and maintaining accurate recruitment records.

“Many businesses invest heavily in site safety, risk management and compliance. The same approach should apply to recruitment. Verifying who you hire before they arrive on site is one of the most effective ways to protect your workforce, your reputation and your business.

“Taking shortcuts during recruitment can have serious consequences. Financial penalties are significant, but employers can also face reputational damage, operational disruption and increased scrutiny from regulators.”

Safer hiring under the spotlight

The latest enforcement figures serve as a reminder that recruitment compliance is becoming an increasingly important issue for the construction industry as businesses seek to balance workforce demands with regulatory obligations.

Personnel Checks is encouraging construction employers to review recruitment procedures, audit compliance processes and ensure hiring managers remain up to date with current right-to-work requirements and safer hiring practices.