New year, new rules: are you ready for the changes to business immigration in 2025?

As the end of 2024 draws near, this article has been prepared to update employers and sponsors on the imminent changes at the UK borders and provide insight on the 'hot topics' going into 2025 for business immigration.

The imminent changes at the UK border – January 2025

As most are aware, physical immigration documents, including Biometric Residence Permits (BRPs), are being replaced by eVisas from 1 January 2025. The Home Office have announced updates to this roll out process to ensure a smoother transition. We recommend that employers share these updates with employees where relevant. The main updates are:

• Extended use of Biometric Residence Permits (BRPs) – although BRP holders are encouraged to switch to a UKVI account and use an eVisa as soon as possible, the government have acknowledged that the 'cliff edge' date of 31 December 2024, may cause severe disruption and delays for those returning to the UK after Christmas. Therefore, in order to smooth the transition to eVisas, the government are allowing carriers to continue to accept BRP or EU Settlement Scheme Biometric Residence Cards, expiring on or after 31 December 2024, as valid evidence of permission to travel until at least 31 March 2025. We are told that end of March date will be kept under review. We recommend that individuals travelling back to the UK in early 2025 continue to carry their expired BRP in addition to carrying a share code to prove their eVisa status.

• Creating a UKVI account – whilst all BRP holders are encouraged to switch to using an eVisa before their BRP expires, where an individual has not created a UKVI account by 1 January 2025 and their BRP has expired, they will be able to do so next year, using their expired BRP if needed.

• Technical issues – the Home Office have acknowledged technical issues meaning that a small number of individuals have experienced issues with their eVisas, including their status not being visible or showing incorrectly. Where technical issues are experienced, individuals are encouraged to contact the Home Office for the issue to be investigated and resolved. Where necessary, the UKVI Resolution Centre can enable an individual's immigration status to be verified through alternative means.

In addition, it must not be forgotten that that next tranche of the UK's Electronic Travel Authorisation (ETA) scheme comes into force from 8 January 2025. The ETA scheme is a digital permission to travel to the UK for short stay visitors to the country. The latest government update confirms that the ETA scheme is now open to all eligible non-European visitors and will be a requirement for such visitors to travel to the UK from 8 January 2025. This means that all business or tourist visitors from countries such as the USA, Canada and Australia (as well as from other countries) will need an ETA to travel to the UK from 8 January 2025.

Furthermore, from 5 March 2025 the ETA scheme will be open to all eligible European visitors and will be a requirement for such visitors to travel to the UK from 2 April 2025.

Please get in touch if you require guidance on eVisas or the transition process.

Hot topics going into 2025

Enforcement increases

There is a clear theme emerging since the Labour government took power and this is that immigration enforcement action is on the rise. New data has shown a significant increase in arrests connected to illegal working, rising by 25% compared to the same period in 2023. In addition, Home Office Immigration Enforcement team visits to businesses have increased by 34% for the same period.

To date, Government action to tackle illegal working has focused on several business types and sectors, including nail bars, supermarkets, car washes and construction. However, their scope is expected to widen into other sectors and therefore, we recommend that all employers review their right to work check policies and processes to ensure compliance. Please get in touch if you require guidance on compliant right to work checks.

Stricter penalties

The Government has announced stronger penalties will be applied to employers that repeatedly breach visa rules and/or commit serious employment breaches, such as failures to pay the National Minimum Wage. Under the new measures, such employers may be subject to bars on hiring overseas workers, extended sanction periods of at least two years (double the current maximum sanction period) and "final cooling off periods", the details of which are yet to be announced.

In addition, for employers that commit minor breaches and are subject to action plans binding them to specific actions to facilitate improvement, the duration of such action plans will be strengthened to 12 months (triple the current three-month maximum duration), to ensure long-term and sustained compliance. Whilst these action plans are in place, employers will be restricted from bringing in overseas workers and failures to comply with the action plans will see employers' sponsorship licences revoked.

Finally, a prohibition on charging skilled workers for the costs of their sponsorship is set to be introduced; a measure that will prevent employers from being able to circumvent sponsorship costs by passing these debts on to their staff. Subject to the details, this could be a major factor for most sponsors and result in reduced overseas recruitment to manage cashflow and budgets.

Reducing the net migration figure (as always!)

The Prime Minister's recent speech on migration, in late November 2024, has set out several plans to reduce immigration:

• the imminent publication of a White Paper;
• reforms to the points-based system in relation to sectors that are over reliant on immigration;
• new expectations on visa applications for training of domestic workers; and
• a new security agreement with Iraq, to include funding for Iraqi law enforcement, to tackle people smuggling and improve border security.

We'll be closely following these developments into 2025 and keeping our clients and contacts up to speed with the latest changes. 

The move towards a fully digital UK immigration system is well and truly underway – although the Government have taken their foot off the gas slightly, which is welcomed to prevent potential chaos and huge delays at the UK borders in the New Year. Sponsors need to be prepared that change is on the horizon, with proposed measures to assist recruitment and others likely to hamper recruitment.  

If you have any queries or require advice on these developments please contact the immigration team on the contact details below.