UK Visas and Immigration are taking a stricter approach to employer compliance with UK immigration laws in 2025. While no major policy reversals are expected, the government is reinforcing existing rules and stepping up enforcement to deter illegal practices and worker exploitation. For HR professionals, this means increased pressure to get the basics right and now’s the time to review your systems and ensure you're inspection-ready.

Policy Guidance from the Migration Advisory Committee

To shape future policy on foreign workers, the Home Office will work closely with the Migration Advisory Committee (MAC). The MAC's expertise will support evidence-based reforms, helping refine enforcement strategies and ensure sponsor licensing rules remain fit for purpose. This collaboration signals a data-driven approach rather than a wholesale policy shift from previous administrations.

Harsher Penalties for Breaches

Employers who commit serious or repeated breaches of sponsor duties will now face a 2-year cooling-off period (up from 12 months) following licence revocation. Minor breaches will trigger extended 12-month action plans, during which employers will be downgraded to a B rating and barred from assigning new Certificates of Sponsorship. Continued non-compliance will result in licence revocation.

New Financial Rules for Sponsors

Sponsors will be prohibited from passing sponsorship-related costs—including licence fees and Certificates of Sponsorship—to migrant workers. This measure formalises and expands on existing rules, which already prohibit recovering the Immigration Skills Charge, ensuring fairer treatment of migrant employees.

Integration with Employment Law

The upcoming Employment Rights Bill will align immigration compliance with broader employment legislation. A newly established Fair Work Agency will monitor sponsor licence rules, National Minimum Wage enforcement, and overall worker protections. Employers will need to meet both immigration and employment law obligations to retain their sponsor status.

Rising Compliance Actions and Audit Rates

Enforcement activity has ramped up considerably. In the first half of 2024, 833 sponsor licences were suspended and 709 were revoked, surpassing the entire totals for 2023. This sharp increase highlights the Home Office’s intent to escalate compliance visits in 2025, targeting non-compliant and exploitative employers more aggressively.


Right to Work Compliance and Penalties

The UK Home Office has reinforced its Right to Work guidance, requiring employers to ensure all employees—regardless of nationality—have legal permission to work in the UK. Employers must carry out and retain copies of proper documentation checks to demonstrate compliance.

Failure to meet these obligations can result in significant sanctions:

• Fines of up to £60,000 per illegal worker
• Criminal prosecution for serious or repeated breaches
• Imprisonment in severe cases involving criminal offences
  

Employers must implement robust procedures to verify and document the right to work status of all staff. For complete details and official guidance, employers are advised to refer to the UK government’s website.

FAQs – Tips for HR Professionals

What is involved in a UKVI compliance inspection?

A Home Office compliance visit is an inspection by UK Visas and Immigration (UKVI) to evaluate whether a sponsor licence holder is meeting their legal obligations. These inspections can be either scheduled or unannounced and may occur before or after the licence is issued.

Why are UKVI compliance checks carried out?

UKVI performs these visits to verify that sponsors are fulfilling their duties—such as maintaining accurate records, conducting proper right-to-work checks, and employing workers legally—aiming to prevent abuse of the immigration system.

What can employers expect during a compliance visit?

During the visit, UKVI officers will review employee files, interview sponsored staff and key personnel, inspect HR systems, and assess right-to-work documentation. They may also evaluate whether the business is genuine and compliant.

Are surprise visits from UKVI possible?

Yes, UKVI can conduct unannounced compliance visits without prior notice. These are more likely when there are suspicions of non-compliance or concerns raised through intelligence or past audit findings.

What are the risks of failing a compliance inspection?

If an employer fails a compliance visit, consequences may include a downgrade to a B-rating, suspension, or revocation of the sponsor licence. This can severely impact the ability to hire or retain sponsored staff and may lead to fines or legal proceedings.

How should businesses prepare for a UKVI visit?

Employers should ensure all right-to-work checks are accurate and up to date, HR files are in order, and key personnel are fully aware of their responsibilities. Regular internal audits and training can strengthen compliance readiness.

Can employers dispute the results of a compliance visit?

If a licence is suspended or revoked, employers may have the right to submit representations or, in some cases, pursue a judicial review. Prompt legal advice is essential in challenging UKVI decisions.

How frequently do UKVI visits occur?

There is no fixed schedule for compliance inspections. UKVI may visit at any stage—before issuing a licence, during the licence term, or at renewal—especially if concerns are raised or changes occur within the organisation.

Do all sponsor licence holders face compliance checks?

Yes, all licensed sponsors—regardless of sector, size, or category—are subject to potential UKVI inspections. This includes sponsors of Skilled Workers, Temporary Workers, and other visa routes.

What steps should be taken if UKVI identifies issues?

If non-compliance is found, employers must act quickly to rectify any breaches. This might involve enhancing internal systems, updating records, or retraining staff. UKVI may require submission of a formal action plan to address the issues.

Why Employers Should Seek Legal Advice for Right to Work Compliance

Ensuring compliance with Right to Work regulations is critical to avoid substantial fines and legal repercussions. With the growing complexity and enforcement focus on immigration compliance, employers are strongly encouraged to seek expert advice when managing these obligations.

UK immigration solicitors can provide tailored guidance to help businesses establish effective Right to Work procedures, conduct audits, and respond to potential Home Office enquiries. By working with experienced legal professionals, employers can:

•    Mitigate legal and financial risks

•    Protect their business reputation

•    Ensure ongoing compliance with UK immigration laws

Investing in legal support helps employers navigate this increasingly regulated landscape with confidence and avoid costly mistakes.

Cleaver Fulton Rankin

T: 028 9024 3141  
50 Bedford Street, Belfast, BT2 7FW 
http://www.cleaverfultonrankin.co.uk/