A leading business organisation has criticised the new rules on employing foreign workers, claiming that small business owners cannot be expected to act as ‘immigration officers.’

The Federation of Small Businesses (FSB), which has over 210,000 members, has publicly condemned the complexity of the new legislation and the Government’s ‘failure to publicise’ the reforms.

From 29 February 2008 employers who negligently hire illegal workers may be charged a £10,000 on the spot penalty, whilst businesses that knowingly take on illegal migrants could incur an unlimited fine and be sent to prison for two years.

The FSB claims the new rules will impose ‘unrealistic expectations’ and ‘draconian fines’ on employers.

‘It is totally unfair to expect small business owners to act as immigration officers and then threaten them with huge fines if they slip up,’ said FSB employment chairman, Alan Tyrrell.

He added: ‘Expecting small employers to understand and implement complicated immigration rules is ludicrous. The guidance notes alone for this piece of legislation run to nearly thirty pages.’

Outlining the changes last year, Home Secretary Jacqui Smith, said the civil penalties would provide a ‘more effective way of dealing with employers who use slipshod or exploitative recruitment methods.’

The new tough penalties are part of a wider Government shake-up of British immigration law. An Australian-style points system will also be introduced in an effort to restrict immigrants to only those with skills that will benefit the UK economy.