Employers who want to hire workers from outside the UK must generally have a sponsor licence. This includes hiring workers from the EU, Iceland, Liechtenstein, Norway, and Switzerland, who arrived in the UK after 31 December 2020. A sponsor licence ensures the employer can legally employ overseas workers.

What happens if employers break visa rules?

The Home Office can revoke a sponsor licence if an employer repeatedly breaks visa rules. This can cause serious problems for businesses that depend on overseas workers. If a licence is revoked:

  • The employer cannot legally hire overseas workers anymore.
  • Sponsored workers already employed will lose their visa. They usually have 60 days to find a new sponsor or leave the UK, unless they have less time left on their current visa.

Currently, there is no right to appeal a revoked licence. Employers must wait a “cooling-off” period of 12 months before they can reapply for a sponsor licence.

New proposed rules

The Government has proposed stricter rules to hold employers accountable and prevent worker exploitation:

  1. Longer cooling-off period
    Employers whose licences are revoked will now have to wait two years instead of 12 months before they can reapply.
  2. Stricter compliance with employment laws
    Employers must comply with employment rules, such as paying the national minimum wage. Breaking these laws could lead to their sponsor licence being revoked.
  3. Ban on charging workers for visa sponsorship costs
    Employers will no longer be allowed to charge workers for the costs of their visa sponsorship, including certificates of sponsorship and sponsor licence fees. This rule aims to stop exploitation, particularly of care workers, who sometimes end up in debt to their employers. 

These changes are a wake-up call for employers who rely heavily on overseas labour. Ensuring compliance is more important than ever to avoid significant business disruption and losing access to overseas labour.

Speak to Jon Dunkley

Jon is a Partner at Wollens and can advise you. Contact Jon via email jon.dunkley@wollens.co.uk or call 01271 341021.

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.