 "UK crackdown: Employers underpaying migrant workers to face penalties")
The United Kingdom (UK) government on Thursday introduced measures to clamp down on employers exploiting migrant workers. These include bans on rogue employers hiring overseas staff and restrictions on charging workers for sponsorship-related costs. The changes are designed to tackle exploitation under the Skilled Worker Visa system and address concerns over rising migration levels.
Officials noted that many employers are “engaging in the unethical practice of charging Skilled Workers for the cost of sponsorship,” often at “grossly inflated levels.” According to a report by Work Rights Centre, a UK-based charity, exploited workers in the UK are being charged up to £20,000 (approximately Rs 21.4 lakh) for costs vaguely labelled as “administration” or “lawyers’ fees.”
The report cited the example of four Indian nurses who were scammed into paying over £20,000 each for a Health and Care Worker visa in 2023. They were not able to report the scam for fear that doing so would lead to their visas being curtailed.
New measures to curb exploitation
The latest rules, outlined as part of the Employment Rights Bill, propose a stricter framework for businesses employing overseas workers. Key measures include:
< Employers found guilty of severe employment law breaches, such as paying below the National Minimum Wage, will lose the right to sponsor overseas workers.
< Firms showing early signs of rule-breaking will be placed on 12-month action plans, up from the current three months.
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< Migrant workers can no longer be charged inflated costs for visa sponsorship. Reports indicate some workers were charged as much as £20,000 under vaguely defined expenses.
"Businesses must bear sponsorship costs themselves if they choose to hire from abroad," Home Office said in a press release.
In 2023, 89% of all adult referrals to the UK’s National Referral Mechanism (NRM), the framework for identifying and supporting potential victims of modern slavery, involved non-UK nationals. Labour exploitation was the most frequently cited reason for referrals, accounting for around 53% of all submissions to the NRM.
Migration levels and political impact
Migration levels to the UK remain high, with net migration at 728,000 in the year to June 2024. This represents a 20% decline from the previous year’s revised figure of 906,000, but it remains historically elevated.
The Office for National Statistics (ONS) on Thursday showed that Indians dominated migration categories, with 116,000 work visas and 127,000 study visas issued in the same period. Indians also recorded low rates of early departure, a sign of long-term settlement. The Graduate Route visa, introduced in 2021, has contributed to these trends by allowing students to stay and work post-study.
Migration is a contentious issue in UK politics. Former Prime Minister Rishi Sunak’s inability to reduce numbers was a key factor in his defeat to Keir Starmer's Labour Party in July’s general election. Starmer accused the Conservatives of running an "open borders experiment," saying, “Time and again, the Conservative Party promised to reduce numbers. Time and again, they failed. This isn’t just bad luck or a global trend; it’s failure by design.”
Exploitation in the care sector
The measures address growing concerns about the exploitation of workers in sectors like social care. Many migrant workers have been found working under conditions akin to modern slavery, including being paid below the minimum wage, facing job insecurity, and accumulating debt to cover visa costs.
In 2023, 89% of all adult referrals to the UK’s National Referral Mechanism (NRM), the framework for identifying and supporting potential victims of modern slavery, involved non-UK nationals. Labour exploitation was the most frequently cited reason for referrals, accounting for around 53% of all submissions to the NRM.
“Worker exploitation is completely unacceptable,” said Seema Malhotra, Minister for Migration and Citizenship. “These shameful practices, especially in the care sector, have plunged workers into unjustifiable insecurity. This can, and must, end.”
Stephen Kinnock, Minister for Care, echoed the sentiment, stating, “Migrant workers are a valuable part of our care workforce. However, the rise in exploitation by rogue operators is unacceptable. These measures will help protect vulnerable workers.”
The Home Office revealed that it has already revoked 450 sponsorship licences from care sector employers since July 2022. Officials noted that some employers had exploited migrants by charging excessive fees under labels such as “administration” or “lawyers’ fees.”
Charities working with migrant workers have welcomed the new measures but warned they may not go far enough to help those already exploited.
Dora-Olivia Vicol, chief executive of the Work Rights Centre, described the measures as the “bare minimum,”. She told Bloomberg, “These proposals to punish bad employers go some way in preventing future exploitation but do nothing for those who have already suffered. Where is the justice for those tricked into spending their life savings on false promises or working under conditions akin to modern slavery?”
The Work Rights Centre’s report found that 177 companies holding licences to sponsor migrant workers had violated employment laws. Many migrants, fearing deportation or job loss, are reluctant to report abuse.
New enforcement agency and oversight
The government plans to establish the Fair Work Agency, which will consolidate existing regulatory functions, including:
< Enforcement of the National Minimum Wage.
< Oversight of statutory sick pay.
< Regulation of employment agencies and businesses.
The agency will also manage licensing regimes for certain sectors, such as agriculture, where exploitation has been widespread.
“These changes are a step in the right direction,” Malhotra said. “We are determined to protect workers and ensure that employers who abuse the system face the strongest possible consequences.”