Scottish employers warned over migrant worker compliance risks

Scottish employers warned over migrant worker compliance risks

Scottish businesses employing overseas foreign workers are increasingly exposing themselves to significant legal and financial risk because they do not fully understand their legal obligations, an immigration lawyer has warned.

Gurjit Pall, a partner at Lindsays, said he is concerned that the importance of compliance requirements for sponsoring migrant workers are not always fully appreciated.

He highlighted the need for businesses to better understand the requirements they must meet as significant changes to the UK’s Right to Work regime came into force.

Under measures which applied from October 1, businesses and organisations must not only check the eligibility of contracted staff to work in the UK, but also that of certain sub-contractors.

The changes also extend to certain online matching platforms, where details of individual service providers are passed to potential clients.

They are the latest in a series of fresh legal requirements to come into effect in recent years.

Mr Pall said: “The extent of the changes we have seen is complex and understandably challenging for businesses to keep track of. It is, however, essential that anyone who holds a sponsor licence monitors everything carefully.

“Many quite simply do not realise the levels of compliance that they must follow, which is a real worry. Sponsors should be regularly auditing the way in which they operate to ensure they remain compliant with their immigration obligations.

“Non-compliance is most often not intentional. But the Home Office has demonstrated that they will revoke the licences of those who do not comply - not to mention issue fines of up to £45,000 per worker and the reputational damage that any breach may cause.”

Employers with sponsor licences must meet a range of compliance obligations, including:

  • Carrying out and retaining evidence of compliant Right to Work checks.
  • Maintaining specified records for sponsored workers and their employment.
  • Keeping up-to-date contact details and other required information for sponsored workers.
  • Monitoring attendance, reporting certain absences and tracking relevant changes in a worker’s circumstances or role.
  • Reporting relevant changes affecting the sponsored worker or the sponsoring organisation to UK Visas and Immigration (UKVI) within the required timescales.

Mr Pall added: “We are seeing growing numbers of compliance issues which may well have been avoidable had each of these steps been properly implemented, monitored and regularly audited.

“Staff training is key. Those who are responsible for recruiting and onboarding workers, contractors, suppliers or managing online platform arrangements should understand the requirements. Failing to get this right can be a costly mistake.”

The warning comes amid continuing Home Office enforcement activity. Home Office sponsorship transparency data shows that 2,346 Skilled Worker sponsor licences and 157 Temporary Worker sponsor licences were revoked during the first six months of 2026 alone.

Mr Pall concluded: “While not every revocation will arise from the same circumstances, the figures demonstrate the importance the Home Office places on compliance.

“Employers should not assume that holding a sponsor licence is simply an administrative exercise. Robust systems, regular audits and ongoing staff training are essential.”

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