I can understand the point of view of an employer who simply doesn't want the hassle to be taken to court by UKBA
Ah no! Very few employers, employing illegal workers, are taken to Court. That only happens in extreme circumstances, given the hassle of preparing papers etc to mount a prosecution. So what does happen? The employer is served with a Penalty Notice, similar in concept terms to the way a motorist caught speeding is issued with a ticket. but much much more expensive!
And just like a speeding ticket, where the motorist can either pay up or take the matter to Court, so it is with the employer issued with their Penalty Notice.
It should not be overlooked that employers can phone the UKBA helpline and get advice on whether someone is an "illegal" or not.
in the Note for employers where it says that such applications should be resolved within six months
Yes, but that just confirms UKBA's lack of ability to read the EU Directive, where Article 10.1 reads :-
The right of residence of family members of a Union citizen who are not nationals of a Member State shall be evidenced by the issuing of a document called "Residence card of a family member of a Union citizen" no later than six months from the date on which they submit the application. A certificate of application for the residence card shall be issued immediately.
Pretty unambiguous that ..... "no later than six months" !
In some other EU countries the Residence Card is issued very quickly, compared to the UK, in a week or two.