Enforcement ‘blitz’ against employers reinforces importance of right to work and sponsorship compliance

21 February 2025

A recent crackdown on illegal working has resulted in a record number of UK employers sanctioned. Home Secretary Yvette Cooper revealed a 48% increase in immigration enforcement visits last month compared to the January before, plus a 73% increase in arrests.

With civil penalties ramping up too, employers now face a fine of up to £60,000 per worker if found liable. It has never been more important for organisations to be on top of their right to work and sponsorship practices.

We advise on all aspects of work immigration compliance and if you are interested in discussing how you may benefit from an audit or update on the latest immigration developments please contact our friendly immigration experts. We are highly ranked in legal guides for our boutique work with employers and employees in business and personal immigration.

It’s crucial for employers to follow the latest Home Office sponsorship and right to work guidance. Below are some recent changes that HR teams should be aware of.

Recent right to work changes to be aware of

The UK’s right to work guidance has been updated to reflect the digitalisation of Britain’s immigration system and the introduction of the eVisa. As physical BRP cards have now been phased out, eVisas have replaced them for generating the share codes to check workers’ right to work.

This is a massive transition generally involving everyone who is not British, Irish, has a right to abode, or is exempt from immigration control. As not everyone’s proof of immigration status is up to date and fully working, the Home Office guidance has been amended to include transitionary measures. Workers with ongoing permission to stay in the UK may use expired BRP cards to access the online right to work checking service to prove their right to work using a share code.

To reflect the digital transformation, the wording on when to contact a Home Office Employer Checking Service to verify the right to work has also been amended, adding if you “have not been provided with any acceptable documents by a non-British or non- Irish citizen and are unable to carry out a check using the online service, for example due to a technical issue with the individual’s eVisa or digital immigration status.”

In the case of British and Irish citizens, employers are able to accept current or expired passports as proof of right to work in the UK. However, the new guidance now clarifies that clipped passports (where the corner is cut off some pages to show they’re cancelled, not expired) are not acceptable right to work proof even though non-clipped passports that have expired are.

Ukraine Permission Extension Scheme

The Ukraine Permission Extension (UPE) Scheme opened this month for those in the UK on Ukraine schemes since the Russian invasion who are coming to the end of their humanitarian scheme visas. Anyone with 28 or less days remaining on their permission can apply for a further 18 months leave on the UPE website. You can find more details on this and other Ukraine schemes here and read our recent article on more permanent UK immigration routes that Ukrainians on schemes are allowed to switch into if eligible.

UPE applications will usually receive a decision within eight weeks. If a worker with a pending application is required to prove their right to work, they should access their eVisa to provide a share code. This will enable the check to be carried out via the Home Office online service.

Changes to sponsorship guidance

New guidance published at the start of the year adds more clarity on which costs employers must not pass onto sponsored employees. Previously, the only cost that it was explicitly forbidden to pass onto a sponsored worker was the Immigration Skills Charge. A sponsor licence will now “normally” be revoked if a sponsor recoups or attempts to recoup the Skilled Worker sponsor licence fee and any “associated administrative costs (including premium services)”. This severe penalty now also applies for attempting to recover the cost of a certificate of sponsorship fee for a Skilled Worker assigned on or after 31 December 2024.

There are also changes to tighten the rules on British or settled staff being among key personnel operating sponsor licences for sponsoring workers. For sponsor licence applications made from 1 January 2025, at least one Level One User must be both an employee, director or partner of the sponsor and a settled worker. “Settled” for the purposes of this new guidance on Level One Users, does not just apply to those with British citizenship or Indefinite Leave to Remain in the UK, it also includes people with other types of immigration status, such as Commonwealth citizens with UK Ancestry visas or pre-settled status under the EU Settlement Scheme.

The Home Office guidance has also been amended to prevent anyone legally prohibited from being a company director from being key personnel on a sponsor licence, unless a court has given the person permission to act as a director or to promote or form a business and as long their sponsorship role doesn’t contravene this permission. The guidance also now confirms that any nominated key personnel must have a valid National Insurance number, unless they are exempt from requiring one.

Anyone described as a “person with significant control” on a sponsor’s Companies House listing has been added to the list of people whose conduct may impact their ability to sponsor migrant workers.

There is a new prohibition on sponsors sponsoring migrants “in a personal capacity,” i.e. for a household, rather than an organisation.

Following recent sponsor licence revocations for sponsors of care workers found to be charging carers sponsor fees to come to the UK without running a care business themselves, the guidance clarifies the position that sponsors must not behave like a recruitment agency for other organisations where sponsored migrants will work.

Sponsors may use their sponsored workers to work under their supervision for third parties in limited circumstances in order to fulfil a contractual obligation where certain requirements are met. However, if the Home Office considers an organisation applying to be a sponsor to be an employment agency supplying sponsored staff to work elsewhere (including where it is acting as an employer of record or professional employer organisation), it will be mandatory grounds for refusing or revoking a licence.

Additional supporting evidence is now required by those applying for a licence to sponsor carers. Where care providers have multiple branches, they will be required to show up-to-date status checks by their regulator, the Care Quality Commission (CQC) for each branch, as well as the head office.

What should HR teams do to ensure they are compliant with immigration guidance?

HR teams should regularly review their right to work and sponsorship policies, key sponsoring personnel, terms of employment and correspondence with sponsored staff to ensure they are compliant with the latest guidance.

If in doubt, contact us for advice and let us know if you are interest in a full compliance audit.

As well as recent increases in enforcement and penalties, ministers have announced stronger measures will be added to the Employments Rights Bill passing through parliament to penalise sponsors who “repeatedly defy visa rules.” Compliance is more important than ever.

Anyone concerned about sponsor compliance or wishing to discuss any work visa options can contact us on 0207 033 9527 or enquiries@vanessaganguin.com.

As sponsorship costs continue to rise, it’s always worth investigating all options for securing the talent you need.

With any migrant staff you intend to sponsor, as part of our highly-ranked boutique client service we always also explore whether any non-sponsored immigration options are available (such as ancestry or global talent) and whether they would be more advantageous to pursue.