New measures to tackle sponsor non-compliance with the Immigration Rules have been announced by the Home Office. These changes, which are expected to be introduced as an amendment to the Employment Rights Bill (“ERB”), include the following:

• The maximum ‘cooling off’ period (this being the period during which a business, which has had a licence revoked for serious breaches of the Immigration Rules, is barred from applying for a sponsor licence) is to be increased from 12 months to two years for those who have committed repeat offences.
   
• The duration of any action plan is to be increased from three months to 12 months. An action plan is put in place by the Home Office for sponsor licence holders who commit less serious breaches of the Immigration Rules to ensure that compliance issues are corrected. Alongside this, the Home Office has indicated that it will be quicker to act on more minor breaches going forwards. 

The new changes were announced at the same time as the Home Office published its latest statistics, which continue to show an increase in the number of sponsor licences being suspended or revoked.  In the third quarter of 2024, the Home Office revoked 513 licences and suspended 509 licences as part of enforcement action. These figures represent a 689% increase for revocations and a 459% increase for suspensions when compared with the same period in 2023. 

In the press release announcing the changes to enforcement action, the Home Office also reiterated its commitment to preventing illegal working, highlighting that October 2024 saw a 55% increase in visits to businesses suspected of employing illegal workers. As a reminder, compliance visits from the Home Office are not limited to the area of suspect illegal working. Such visits can be made at the Home Office’s discretion and, in particular, may be triggered by any compliance concerns that the Home Office may have, which can include concerns about whether a business is complying with its sponsor duties.

The proposed changes make it clear that sponsor compliance remains a focus for the Home Office. Sponsors will need to watch this space for further proposals in this area but, in the meantime, should ensure that they are familiar, and compliant with their duties, and are prepared in the event that the Home Office decides to conduct a compliance visit (which may be unannounced). 

If you would like to discuss these changes or sponsor duties more generally, including how you might prepare for a compliance visit, please do get in touch.