Businesses hiring illegal immigrant workers can now face fines of up to £60,000 per worker, amid intensification of HM Revenue & Customs (HMRC) and UK visa and immigration (UKVI).
The warning issued a wave of unannounced inspections and drastically raised the suspension and revocation of sponsor licenses.
According to André Minnaar, partner and head of Sydney Mitchell’s immigration team, the government is greatly increasing pressure on businesses with licenses for skilled workers sponsors and paying special attention to sectors such as social care, where overseas recruitment is most common.
“In recent weeks, multiple reports have confirmed that UKVI has increased compliance access to sponsor license holders,” Minnaar said. “This has resulted in a sharp increase in the number of revoked and revoked licenses and an increase in law enforcement access to illegal work.”
Now the fine for hiring illegal workers is £45,000 per worker, and a repeat offender of £60,000 in three years.
Data from the Ministry of Home Affairs shows that between January and June 2024, 833 skilled worker sponsors were suspended from permits, while 709 were revoked. In contrast, only 569 suspensions and 337 suspensions throughout 2023 mark a sharp increase in law enforcement.
Much of the crackdown appears to be stemming from political pressure to curb the growing number of legal immigrants and the high-profile cases of abuse in the nursing home sector, one of the most dependent foreign workers in the UK.
“UKVI reveals a massive abuse of the visa system by certain nursing home institutions,” Minnaar said. “The result is an unprecedented suspension, leaving many immigrant workers in a difficult situation and without jobs.”
UKVI’s compliance access may be pre-arranged or unnotified and is intended to assess whether an enterprise is performing its sponsor’s responsibilities. This includes verifying that the HR system is appropriate to monitor the visa status of employees, keeping records of records up to date and preventing illegal work.
Minnaar warns that any business holding a sponsor license must always be ready for review:
• Failure to meet compliance standards may result in a company’s license downgrading from A to A rating.
•A action plan will then be released to the business, with fees to be paid and sponsorship of new workers will be temporarily prohibited.
•In more serious cases, UKVI can completely suspend or revoke the sponsor license. Revocation means that businesses no longer hire sponsored workers, and workers who have already hired may cut their visas.
“The consequences of a failed Home Office inspection can be serious,” Minnar said. “Businesses need to ensure that hiring, HR and compliance processes are properly recruited and reviewed regularly.”
As law enforcement increases and penalties are immigrant experts urge all sponsor license holders to conduct internal audits and compliance training.
The company must be able to prove:
•They have the latest records of all sponsored workers.
•Their recruitment procedures include job rights checks.
•All sponsorship responsibilities are being performed in accordance with UKVI regulations.
“These on-site inspections have not disappeared,” Minna warned. “If your home is not organized, your business is at serious risk – not only a fine, but also a loss of the ability to fully recruit overseas talent.”
As the political climate around immigration continues to tighten, sponsor licensees are urging to view compliance as a strategic priority rather than challenging the box office.
