On Balance Autumn/Winter 2015

12 On Balance Weighing the issues of commercial law
REDUCING
THE RISKS OF
MIGRANT EMPLOYMENT
Both the government and the courts are taking a tough line on employers
who flout immigration rules. Elaine McIlroy discusses the main issues.
Organisations employing migrant workers are facing a
government clampdown on illegal working. This could have
serious consequences for all businesses as every employer,
regardless of size, must carry out checks on all staff to prove
they have the right to work in the UK. A failure to do so can
result in criminal as well as civil penalties. Directors can
be personally liable in some instances – so taking these
obligations seriously is paramount.
Immigration Minister James Brokenshire recently warned
that businesses employing illegal workers will be hit with
‘the full force of government machinery’, adding that
immigration officers will target cleaning firms, building sites
and care homes. In addition to the risk of civil and criminal
penalties, businesses should also consider the risk of damage
to reputation that they may suffer from adverse press
coverage. Blue chip companies have made front page news
for employing illegal workers and have learned the hard way
about the costs of slipping up.
Every employer, regardless of size, must
carry out checks on all staff to prove they
have the right to work in the UK.
Having adequate ‘right to work’ systems in place is
fundamental – and ensuring that staff are properly trained
to carry out these checks is key. But for employers who want
to sponsor migrant workers to work in the UK additional
compliance processes also need to be in place.
Employers who want to sponsor overseas workers under the
points based system have more stringent compliance rules to
get to grips with than other employers. Any infringements can
have serious legal, financial and reputational implications for
those businesses – particularly if they rely on migrant workers
to operate their business.
Employers in many sectors regularly sponsor overseas
workers including: oil & gas, engineering, financial services,
healthcare, universities and other sectors that rely on bringing
in migrant workers to fill specific skills shortages. But even
those employers who sponsor migrant workers less regularly
have good reason to get the procedures right.
The importance of being ready for official spot-checks
UK Visas and Immigration (UKVI) carries out regular visits
to the premises of companies who hold sponsor licences
entitling them to sponsor migrant workers to work in the UK.
Compliance visits can be pre-arranged or unannounced.
According to UKVI data released in May 2015, some 66%
of all visits to sponsors in the preceding 12 months were
unannounced, which resulted in 802 sponsor licences being
revoked and 732 suspended.
In light of UKVI’s uncompromising stance, it has never been
more essential to have the right risk management systems and
processes in place to comply with sponsor duties.
These require sponsor licence holders to operate appropriate
HR systems and processes, ensure right to work checks
are carried out, comply with specific record keeping duties,
and report certain migrant-related matters to UKVI within
specific timescales.
© Copyright. Weightmans 2015. All rights reserved.