Business immigration updates for employers | April 2025

In the constantly evolving world of immigration, we have highlighted below the main updates and developments for employers that have been released this month:

Planned changes for right to work checks to include the 'gig economy' and zero-hours workers

The government have announced plans to introduce tough new laws to clamp down on illegal working. Currently, where there is a traditional employment relationship, businesses must complete right to work checks meaning that workers under the gig economy or zero-hours contracts are not legally required to provide their right to work documents to prospective employers. The Home Office updated its right to work guidance last year to 'strongly encourage' employers to confirm the right to work status of contractors, but this remained at the employers' discretion. Moving forwards, the government plans to take a firmer stance and has announced it will extend right to work checks so that they apply to companies who hire self-employed workers and zero-hours workers. However, no implementation date has yet been confirmed. How the government will define a "gig economy" worker and whether this will extend to include agency workers will need careful consideration.  

In the meantime, businesses hiring self-employed workers, and zero-hours workers should review their right to work check processes and prepare their procedures and resources to ensure such individuals are checked for their eligible to work in the UK. There is now a window for preparation that should be utilised by businesses. Internal audits, staff training and updating policies will be essential to ensure compliance. We understand that Deliveroo, Just Eat and Uber Eats already voluntarily carry out these checks and other businesses should follow suit. Research published by the Home Office earlier this month found that whilst 89% of employers understand basic requirements around right to work, many (especially smaller employers) lack detailed knowledge of compliance obligations. The government clearly has work to do to not only publish updates as they arise but also issue clarity on the ever-changing right to work guidance. After all, failure to carry out such checks and employ illegal workers could trigger huge fines of up to £60,000 per worker, business closures, director disqualifications and potential prison sentences of up to 5 years. Lack of knowledge is no defence.

Business and Trade Committee publish report on strengthening UK-EU trading relations

On 4 April 2025, the Commons' Business and Trade Committee published a report setting out suggestions for strengthening UK-EU trading relations, ahead of the May UK-EU summit. The key recommendations around mobility were the proposals to establish an ambitious, visa-based youth mobility scheme between the UK and the EU with a limited number of participants – so as not to drive up the net migration figure. In addition, to push ahead with mutual recognition of professional qualifications in certain regulated professions, such as medicine, nursing and architecture to help address the skill shortages.

The report is currently open for consultation with businesses, trade unions, and consumer groups, with a final version expected ahead of the planned UK-EU summit in May. The full report can be found here.

Changes to the definition of "small sponsor"

As of 6 April 2025, regulations have been issued to amend the definition of a “small company” under the Companies Act 2006. This amendment impacts current sponsor licence holders as well as those considering applying to be a sponsor licence holder, because organisations are classified by their size.  The legislation alters the thresholds for annual turnover and balance sheet total for small companies. However, the employee number threshold for small companies remains at 50.

Since 6 April 2025, a sponsor is now classified as “small” if it meets any two of the following three criteria:​

• Annual Turnover: Not more than £15 million (previously £10.2 million);

• Balance Sheet Total: Not more than £7.5 million (previously £5.1 million); and

• Average Number of Employees: Not more than 50

Additionally, entities with charitable status or those applying solely under the Temporary Worker routes are also considered small sponsors.

Sponsors should check their classification against the revised criteria above and once they have satisfied the criteria for two full consecutive financial years, they must report this change to the Home Office within 20 working days. If approved, the sponsor will benefit from lower Immigration Skills Charge fees when assigning CoS under the Worker routes. If this amendment has impacted your company size and you wish to discuss the impact, and action needed, to your sponsorship licence, please do get in touch.