A new resource to help employers to stay on the right side of the law has been has been launched by the Home Office.

The online toolkit, which was designed as key source of information for businesses that employ migrant workers, is intended as a support system.

The service offers targeted information and guidance including a step-by-step guide, advice about Romania and Bulgaria, answers to a series of frequently asked questions and a set of good practice case studies.

Liam Byrne, Minister for Immigration, Citizenship and Nationality, said: “Legal migrants from around the world make a substantial contribution to our society, both in terms of wealth creation and in the delivery of frontline services. They contribute to the strength and diversity of our culture.

“At the same time we must discourage those who would seek to find work illegally from coming here in the first instance. We need to ensure that everyone plays by the rules and that any companies that try to steal an unfair competitive advantage through employing illegal migrants are dealt with.

“That is why we are introducing a simpler, clearer and more selective points-based system for managing migration along with biometric residence permits for foreign nationals in 2008.”

Hiring illegal workers could now cost employers thousands of pounds and lead to prosecution and to being named and shamed in public, according to the Home Office. Those found to use or exploit such workers knowingly could face a two-year jail term and unlimited fine.

But employers are being warned that it is their responsibility to comply with the law.