Businesses flouting visa rules to be banned from hiring overseas workers

Ministers acknowledge an “unacceptable” rise in the exploitation of overseas care workers 

The Labour government has announced stringent measures to crack down on visa abuse and prevent the exploitation of international workers, delivering on a key manifesto commitment.

The Department of Health and Social Care (DHSC) and the Home Office jointly announced on Thursday (28) that businesses repeatedly flouting visa rules or committing serious employment breaches, such as failing to pay the national minimum wage, will be barred from hiring overseas workers.

Under the current rules, employers who blatantly flout visa laws can only be sanctioned for a maximum of 12 months. However, the new measures will extend this period to at least two years for repeat offenders, with final cooling-off periods to be announced later.

The government will now act on early signs of rule-breaking rather than waiting for severe breaches to occur.

Action plans require businesses that commit minor visa breaches to follow specific to help them improve and correct any issues. These plans are being strengthened further, with the maximum time they can be applied quadrupled from 3 to 12 months, ensuring long-term and sustained compliance with visa rules.

The reforms aim to address the root causes behind the UK’s long-term reliance on international workers and protect vulnerable workers from exploitation, particularly within the care sector.

Seema Malhotra MP, minister for migration and citizenship, reiterated the government’s commitment to do “everything in our power to ensure those who abuse our immigration system face the strongest possible consequences.”

She said: “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.”

Malhotra highlighted the prevalence of exploitation in the care sector and described the practice as “completely unacceptable,” stressing the need to put an end to it.

“Shamefully, these practices have been seen particularly in our care sector, where workers coming to the UK to support our health and social care service have all too often found themselves plunged into unjustifiable insecurity and debt.

“This can, and must, end,” she added.

New rules will require employers who recruit internationally to pay associated costs themselves.

During extended action plans, employers will face restrictions on hiring overseas workers, and failure to comply or make the necessary improvements may result in their visa sponsor licence being revoked.

The changes will be enacted through the new Employments Rights Bill, currently under Parliamentary review.

Under the bill, the newly-established Fair Work Agency will consolidate existing state enforcement functions, including regulations for employment agencies and employment businesses, enforcement of the National Minimum Wage, Statutory Sick Pay, and the licensing regime for businesses operating as ‘gangmasters’ in certain sectors.

Stephen Kinnock, minister for care, acknowledged that migrant workers are “a valuable part of our social care workforce, supporting vulnerable people across the country every day.”

He also highlighted an “unacceptable” rise in the exploitation and abuse of overseas social care workers by “rogue operators.”

“Cracking down on these unethical employers will protect migrant workers from unacceptable and shameful exploitation,” he stated.

Since July 2022, approximately 450 sponsor licences in the care sector have been revoked as part of the government’s efforts to tackle visa abuse.

These new measures further strengthen the government’s efforts to crack down on rogue employers who exploit vulnerable migrants working illegally in the UK.