In one of our previous blogs we discussed the further measures that the new Labour government intends to bring in order to reduce net migration to the UK. Today 28th November 2024 Home Office issued press release Rogue employers will be banned from hiring overseas workers.
The Home Office used strong wording at the start ‘Shameless businesses who commit serious offences will be banned from sponsoring overseas workers to crack down on visa abuse and prevent exploitation.’
All employers should take a note of this warning to ensure they remain compliant and can sponsor foreign workers if needed. We recommend reading our article on immigration compliance for sponsor employers.
Labour government’s pledges – sanctions for rogue employers
According to the press release, businesses that repeatedly flout visa rules or commit serious employment breaches, such as not paying the National Minimum Wage, will be barred from hiring overseas workers.
Currently, employers who flagrantly flout visa rules can only be sanctioned for a maximum of 12 months. Under our changes the government intend to increase the period, and for repeat offences it will be at least 2 years, double the current length. The final cooling off periods are to be announced in due course.
Government will also not wait until employers have committed serious breaches of the law before taking action, when there are already signs of rule breaking. Action plans bind businesses who commit minor visa breaches to a set of specific actions to help them improve and correct any issues. The maximum time they can be applied will be quadrupled from 3 to 12 months, ensuring long-term and sustained compliance with visa rules.
While the longer action plans are in place, employers will face restrictions on their ability to bring in overseas workers. Failure to comply or make the necessary improvements will see their visa sponsor licence revoked.
According to the government, the measures are part of wider efforts to tackle the root causes behind the UK’s long-term reliance on international workers and action to link migration policy with skills and wider labour market policy.
Protecting vulnerable workers from exploitation & sponsorship costs
The government aims to protect vulnerable workers from exploitation, prohibiting unprincipled companies from engaging in the unethical practice of charging skilled workers for the cost of sponsorship. The new powers will be brought to ensure employers who recruit internationally will be required to pay associated costs themselves.
The press release states ‘Worker exploitation is completely unacceptable. Shamefully, these practices have been seen particularly in our care sector, where workers coming to the UK to support our health and social care service have all too often found themselves plunged into unjustifiable insecurity and debt. This can, and must, end.’
Since July 2022, the government has revoked approximately 450 sponsor licences in the care sector as the government continues to clamp down on abuse. Significant work is ongoing across government, in collaboration with the care sector, to ensure high standards across the immigration system, and to support care workers into alternative jobs when their sponsor has had their licence removed.
Employment Rights Bill
These changes will be part of the government’s new Employments Rights Bill, currently going through Parliament. Under the bill, the newly-established Fair Work Agency will bring together existing state enforcement functions including regulations for employment agencies and employment businesses, enforcement of the National Minimum Wage, Statutory Sick Pay and the licensing regime for businesses operating as ‘gangmasters’ in certain sectors.
We recommend reading our article on immigration compliance for sponsor employers and our other article about compliance for care sector sponsor employers.
