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We have an (excellent) American employee who has failed to produce a work permit despite repeated reminders. Do we have to dismiss her?

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We have an (excellent) American employee who has failed to produce a work permit despite repeated reminders. Do we have to dismiss her?

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Providing that you are satisfied that she does not have a work permit, yes. It is illegal for you to continue to employ her and you risk a criminal conviction for which the penalty is a fine and, potentially, imprisonment, if you do so. However, she may still have protection against unfair dismissal (if either her contract states or a court finds that the governing law is English, and she meets the qualifying conditions under English law). So for the time being at least make sure your procedures are equivalent to (or better than) the statutory minimum (see questions 2 and 3) and that you observe them before dismissing her. You might also try consulting the Overseas Labour Service, to see if any steps can be taken to rectify her illegal status. Whilst it is a criminal offence to employ a person who is not entitled to work in the UK, you will have a defence if you have checked and retained copies of the documents of all potential employees, to ensure they have the right to work in the UK

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