As part of a new crackdown against visa abuse, employers who commit serious offenses will be prohibited from hiring foreign workers.
The Home Office announced that businesses who repeatedly violate visa rules, or commit serious employment violations, such as not paying the national minimum wage to workers abroad, would be prohibited from hiring them.
The policy is in line with a Labour Party manifesto commitment and has been included as amendments for the Employment Rights Bill.
At the moment, employers who violate visa regulations flagrantly can be sanctioned only for 12 months. The new changes will double the length of the penalty for repeat offenses.
The government will not also wait until serious violations of law have been committed by employers before it takes action. Businesses that violate minor visa laws are bound to specific corrective actions by action plans.
The maximum period of time that these can be used has been quadrupled, from three months to twelve months. This will ensure long-term compliance with visa regulations.
Employers will be restricted in their ability to hire overseas workers while the longer plans are in effect. Visa sponsor licenses will be revoked if employers fail to comply with the rules or do not make improvements.
Ministers stated that the measures are part of a wider effort to address the root causes for the UK’s longstanding reliance on foreign workers, and to take action to link migration policies with skills and wider Labour Market Policy.
Stephen Kinnock said that there was “an unacceptable increase in the exploitation of overseas social workers by rogue operators”.
“By cracking down on unethical employers, we will protect migrant worker from unacceptable and shameful abuse.”
These measures also aim to protect vulnerable workers against exploitation by prohibiting unethical companies from charging workers for sponsorship costs.
The bill currently being passed through the parliament will also include other amendments that aim to curb the practice of sponsored employees claiming visa costs back.
The Employment Rights Bill will create the new Fair Work Agency, which will consolidate existing state enforcement functions, including the regulation of employment agencies and employment business, enforcement for the national minimum wages, statutory sick leave and the licensing system for businesses that operate as “gangmasters”.
Home Office announced that there was a “major increase” in targeted visits by Immigration Enforcement to businesses suspected of hiring illegal workers. 856 visits were made in October, a 55% rise on the same period last year. More than 6,600 visits were made between January and October of this year. This is a 22% rise on the same time last year. Over 4,600 arrests have been made.
Since July 2022 the government has revoked approximately 450 sponsor licenses in the care industry as it continues to crack down on abuse.
Ashley Stothard is an immigration executive with the law firm Freeths. She welcomed the new measures. “Today’s proposed changes in the Employment Rights Bill feel like the right move forward in tackling the exploitation of immigrants.” Many migrant workers in the care industry, and especially those who are employed there, suffer from severe labour abuse, including debt bondage, and unjust work conditions. It is hoped that by enforcing harsher penalties and banning unethical practice, migrant workers will be treated with dignity and respect.
This is a good step towards a more fair and just immigration system. The amendments were made at an early stage of the bill’s progress through the parliament. I am curious to see if these changes make it into the final version.
Joanne Leach is a senior associate at Lawrence Stephens. She said that early consultations on the measures were welcome because it was unclear, for example, how a company would be judged as being in violation of employment laws and whether or not this determination will come from a successful claim before an employment tribunal, or if a new regulatory agency will be charged with assessing whether minimum standards are met.
Seema Malhotra, the UK’s migration minister, said: “Employers will no longer be able flout rules without consequence or exploit international employees for costs that they were supposed to pay when they chose not to hire domestically…. Workers coming to the UK in order to support our social and health care services have been plunged into unjustifiable debt and insecurity. This must stop.
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