Business immigration updates for employers | September 2025

In the constantly evolving world of immigration, we have highlighted below the main updates and developments for employers and sponsors that have been released this month. There are no ground-breaking changes, but continuing themes focused on enforcement, digitalisation and international consensus.

New digital ID system to be rolled out across the UK

The Government has announced plans to introduce a new digital ID system, under which digital IDs will be mandatory for Right to Work checks by the end of Parliament. Digital IDs will be free to download and will be available to all UK citizens and legal residents.

The digital IDs will be proof of identity and residency status in the UK and will therefore include name, date of birth, nationality or residency status, and a photograph. They will be held on people's phones and the scheme will be rolled out alongside an outreach programme, including face-to-face support for citizens struggling to access the scheme. There will be a public consultation launched later this year for the Government to obtain views on how the service will be delivered and whether any additional information, such as address details, would be helpful to be included.

The new system has been framed as a tool to combat illegal working while making it easier for people to apply for services like driving licences, childcare and welfare, and streamlining access to tax records. However, the proposals are controversial, with concerns being raised about privacy, data security and government overreach. An e-petition against the introduction of digital ID cards has already amassed over 2 million signatures and is due to be debated in Parliament.

Source: New digital ID scheme to be rolled out across UK - GOV.UK

Home Office revokes record number of sponsor licences for rule violations

The Home Office have reported that between July 2024 and June 2025, they have revoked 1,948 sponsor licences from employers, restricting them from sponsoring foreign workers. This is more than double the number of sponsor licences revoked in the previous 12 months and means that sponsor licence revocations this year are expected to exceed the record high.

It is reported that improved data and intelligence sharing across government and law enforcement has resulted in more employers being held accountable for breaking the immigration rules. This new approach, which was previously heavily reliant on physical compliance visits, has supported the increase in licence revocations.

The Home Office states that licences have been revoked from companies for a wide range of rule breaking, which includes underpayment of workers, facilitating the entry of individuals to circumvent the immigration rules and failing to provide promised work. Adult social care, hospitality, retail and construction are noted to be the sectors with the highest levels of abuse.

We recommend employers with sponsor licences review their systems and practices to ensure they are complying with their sponsor duties and responsibilities. Please get in touch if you require support with sponsor licence duties or would like further information on our compliance and audit services.

New awareness campaign for the implementation timeline of the European Union Entry/Exit System (EES)

The EES is set to be introduced by the EU from 12 October 2025, for UK and non-EU nationals, travelling to the Schengen area countries including Iceland, Norway and Switzerland for a short stay. EES will not be required when travelling to Ireland and Cyprus. The EES will be phased in over a 6-month period, meaning different ports may have varying requirements until April 2026. The EES replaces passport stamping for all non-EU citizens.

The government are launching a new campaign to raise awareness of the EES system to prepare British travellers. Messages will be shared across government social media channels, by transport operators and on travel websites.

The EES is an automated system that requires travellers to register at the border by scanning their passport and having their fingerprints and photograph taken. British and non-EU travellers will need to register for the EES on their first visit to a participating country. Travellers do not need to take any action before travelling and EES registration is free. This registration is valid for a rolling 3-year period or until the passport expires.

As EES checks will take place upon arrival at the EU border this is likely to lead to longer wait times for border security checks. We recommend employers also raise awareness of these changes, and potential delays over the next six months, for employees who will travelling to the EU for short business stays.

Source: New campaign to prepare British travellers for EU border changes - GOV.UK

Parliamentary debate on petitions relating to proposals to double the qualifying period for settlement

On 8 September 2025, parliament debated two e-petitions relating to the government's Immigration White Paper proposals to double the qualifying period for indefinite leave to remain (settlement) from 5 years to 10 years. The two e-petitions have currently amassed signatures of over 170,000 and 100,000 respectively. The details of the proposals remain unclear, including whether it's intended that the proposals will apply to new skilled workers after a set date or respectively. The position following the debate remains that a consultation process will commence later this year. 

The e-petitions reflect the understandable uncertainty being felt by existing skilled worker visa holders, those looking to enter the UK for work and current and future sponsors of skilled workers. We are keeping a close eye on these developments and will provide further updates as soon as they are available. 

Multinational agreement on immigration returns and visa number restrictions for non-compliance

The Home Office has announced a new agreement with the United States, Canada, Australia and New Zealand, known collectively as the Five Eyes, to boost the return of individuals with no legal right to remain in the UK. The agreement takes immediate effect and establishes obligations for the above countries to accept the return of their nationals who are unlawfully present in the UK. In cases where the Five Eyes are unwilling to accept the enforced repatriation of their own nationals, this could lead to new measures, including cuts to the number of visas they are granted by the UK, which could have recruitment implications for employers.

The Five Eyes have also agreed to explore opportunities to take co-ordinated operational measures against online platforms that facilitate organised immigration crimes, such as people smuggling networks.

Source: UK could cut visas for countries that refuse to accept returns - GOV.UK