The United Kingdom (UK) Government has announced new measures to combat visa abuse and exploitation of overseas workers.
Businesses that commit serious violations, such as failing to pay fair wages or charging workers illegal fees, will face strict penalties.
Stricter penalties now include businesses being banned from sponsoring foreign workers for at least two years.
This crackdown aims to promote fairness in the labor market and protect vulnerable workers while enforcing visa and employment laws.
It comes after the Office for National Statistics released a record 900,000 net migration to the UK in the year ending June 2023.
Imposing a longer ban on hiring overseas workers
Employers who repeatedly violate visa rules or commit serious offenses will be banned from hiring overseas workers for at least two years.
Previously, businesses with serious offenses could only be sanctioned for up to one year or 12 months.
Doubling the penalty’s length aims to act as a stronger deterrent against bad practices.
The Home Office will not wait for employers to break the law when there are already signs of visa abuse or exploitation.
Businesses that make minor visa breaches must accomplish a set of specific actions to help them improve and correct any issues.
The government extended the maximum duration for these provisions from 3 to 12 months, ensuring better compliance with visa regulations.
In a news release, Migration Minister Seema Malhotra highlighted the government’s commitment to protecting workers and enforcing the law.
“No longer will employers be able to flout the rules with little consequence or exploit international workers for costs they were always supposed to pay if they choose not to recruit domestically,” she said.
Ending unfair fees for migrant workers
These new measures address a major issue: the practice of charging migrant workers excessive fees for sponsorship.
Some employers have demanded as much as £20,000 under the guise of “administration” or “legal” costs.
These practices often leave workers deeply in debt and dependent on their employers.
The UK Government has now made it mandatory for employers to cover all costs associated with recruiting international workers.
Businesses found violating this rule will lose their sponsorship licenses, effectively barring them from hiring foreign workers in the future.
The care sector has come under particular scrutiny due to a rise in exploitation cases.
Since July 2022, the Home Office has revoked approximately 450 sponsor licenses in the sector due to non-compliance.
Many of these cases involved paying workers below the minimum wage and subjecting them to poor working conditions.
Health Minister Stephen Kinnock called out the unacceptable rise in the exploitation and abuse of overseas social care workers.
“Cracking down on these unethical employers will protect migrant workers from unacceptable and shameful exploitation,” he said.
Broader efforts to combat exploitation
The new measures are part of a larger plan to reduce worker exploitation across all sectors.
The government is increasing enforcement against illegal working and introducing stricter penalties for non-compliance.
Penalties include fines, business closures, and even criminal prosecution for the most serious offenders.
The stricter enforcement of visa rules aligns with the upcoming Employment Rights Bill, which is now in Parliament.
The new bill will establish the Fair Work Agency to enforce labor laws, including fair wages and worker protections.
It also aims to protect overseas workers’ rights, better monitor compliance, and address grievances.
This includes regulations for employment agencies, enforcement of the National Minimum Wage, Statutory Sick Pay, and licensing for ‘gangmaster’ businesses in specific sectors.
The UK directly ties visa sponsorship rules with employment law compliance for the first time.
Businesses violating labor regulations, like underpaying workers or unsafe conditions, will be banned from sponsoring foreign workers.
This alignment aims to ensure fair treatment for all workers and create a level playing field for businesses that follow the rules.
The goal is to reduce the UK’s reliance on migrant workers, support domestic recruitment, and protect the rights of incoming workers.
Challenges and the path ahead
Some advocacy groups have expressed concerns about the widely praised enforcement of stricter visa rules.
They argue that the government needs additional resources to effectively investigate and prosecute offending businesses.
At the same time, businesses that comply with the law have raised concerns about the potential administrative burden of the new rules.
The government has reassured employers that the changes will primarily affect those who violate the law.
Malhotra reinforced the importance of these measures, saying, “Worker exploitation is completely unacceptable.”
The government aims to protect vulnerable workers and foster an ethical labor environment.
It aims to achieve this by prohibiting unethical employers from hiring foreign workers and aligning visa regulations with employment laws.
The success of these measures depends on strict enforcement and ongoing vigilance to prevent abuses.