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    Sponsor compliance measures for UK employers

    Tougher Sponsor Licence Compliance Measures Announced by Home Office in 2025.

    Discover the new 2025 Home Office compliance measures for Sponsor Licence holders, including longer cooling-off periods, extended action plans, and stricter penalties for breaches.

    white clock icon 1 min read

     

    Home Office Announces Tougher Sponsor Licence Compliance Measures for Employers in 2025

    We have a sense of the direction of travel by the Home Office in 2025. The Home Secretary has confirmed that for now, she does not intend to overturn any of the policies of the previous government. However, the Home Office plans to use the expertise of the Migration Advisory Committee to help shape government policy regarding foreign workers.

    That said, there is a move by the government to introduce tougher measures for employers that sponsor skilled workers. These measures highlight a strict stance on immigration law enforcement and employer compliance.

    In this article, we outline the key changes, their implications, and actionable steps employers can take to stay compliant.

    Key Changes to Sponsor Licence Compliance

    1. Crackdown on Immigration Law Breaches and Sponsor Licence Requirements

    The government has reiterated its commitment to a strict approach to immigration law violations and worker exploitation. While these changes do not represent a major shift in policy, they emphasize stringent enforcement of existing rules.

    1. Longer Cooling-Off Periods After Sponsor Licence Revocation

    • Currently, employers face a 12-month cooling-off period after their Sponsor Licence is revoked.

    • Under the new measures, serious or repeated breaches will result in a 2-year cooling-off period.

    • For civil penalties or criminal convictions, longer cooling-off periods already exist, and this new measure strengthens enforcement against non-compliant employers.

    1. Extended Action Plans for Non-Compliance

    • Action plans for minor breaches, which currently last up to 3 months, will now extend to 12 months.

    • During this period:

      • Employers cannot assign Certificates of Sponsorship to new workers.

      • Employers will be downgraded to a B rating on the sponsor register. 

      • The sponsor register will reflect the downgraded rating, affecting reputational standing

    • Non-compliance with action plans will result in licence revocation.

    1. Prohibiting Sponsors from Passing Sponsorship Costs to Workers

    • Sponsors will no longer be allowed to pass sponsorship costs (Certificates of Sponsorship and Sponsor Licence fees) to migrant workers.

    • While recouping fees like the Immigration Skills Charge is already prohibited, this measure formalizes and expands these protections under the Immigration Rules.

    1. Aligning Immigration and Employment Laws

    • Immigration compliance will integrate with employment law through the new Employment Rights Bill.

    • The Fair Work Agency will oversee compliance with licensing regulations, the National Minimum Wage, and other worker protections.

    • Sponsors must ensure adherence to UK employment laws as part of their sponsor duties.

     

    Compliance Statistics from 2024

    The Home Office’s increased focus on compliance is evident from last year’s statistics:

    • 833 Sponsor Licences were suspended in the first half of 2024, representing one-third of all UKVI audits conducted.

    • 709 Sponsor Licences were revoked in the same period.

    • In comparison, 2023 saw 569 suspensions and 337 revocations in total.

    The Home Office have reiterated that compliance visits will be an important part of their work to prevent illegal working and to weed out unscrupulous employers in 2025. We can therefore only assume that the rate of visits will increase in 2025.

     

    Why Compliance is Critical

    The consequences of non-compliance are far-reaching:

    • Reputational Damage: A revoked, or suspended licence can harm your brand and employee confidence.

    • Financial Penalties: Non-compliance can result in hefty fines and legal costs.

    • Impact on Sponsored Workers: Sponsored workers may lose their right to work, affecting your business operations.

    The Home Office’s strict stance on compliance underscores the importance of maintaining high standards. Employers must take immediate action to review their policies and practices to remain compliant and avoid penalties.

     

    Need Assistance?

    With these significant changes on the horizon, it is vital for employers to act now. Proactive measures can safeguard your Sponsor Licence and ensure your business remains compliant with the evolving immigration landscape.

    Need assistance with compliance or an immigration audit? Contact Paragon Law today for expert guidance tailored to your needs.

     

     

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