Jessica O'ConnorUK employers are at growing risk of losing access to international talent as government enforcement of immigration compliance intensifies, according to business immigration specialists at law firm Taylor Rose.
Data from the Home Office revealed that 1,948 sponsor licences were revoked in the year to June 2025 – more than double the 937 recorded in the previous 12 months – signalling a sharp rise in enforcement activity against non-compliant employers.
Sponsor licences allow UK organisations to legally employ foreign nationals.
Losing a licence means companies must terminate the employment of their sponsored staff and their dependants, often leaving businesses with immediate skills shortages.
Victoria Welsh, head of business immigration at Taylor Rose, said the crackdown poses a major threat to the 120,000-plus UK firms that rely on overseas talent.
She added: “As the government steps up its efforts to tackle abuse of the immigration system, more and more businesses are getting caught in the crossfire because of failures in compliance.
“Often these arise because of a lack of awareness of what is required, and the margin for error is narrow.
“Many revocations arise due to failures we see time and time again, such as workers being inadvertently underpaid after triggers including changing working hours, salary deductions or unpaid leave; businesses not conducting up to date and correct Right to Work checks before a worker’s employment starts or failing to track when visas are going to expire.
“Whatever the cause, sponsor compliance is not optional and failure to take it seriously can result in the loss of a critical source of skilled labour.”
The most common compliance failures included underpaying sponsored workers, failing to prove genuine employment, and breaches of Right to Work rules.
Welsh warned that while some businesses deliberately flout regulations, many others are caught out by weak internal processes or under-resourced HR teams.
Recent reforms have expanded the government’s enforcement powers, with digital monitoring systems and data sharing across agencies such as HMRC and the DWP allowing authorities to detect potential breaches automatically.
Many employers are unaware of ongoing “desktop audits” until they receive a document request or an unannounced virtual or on-site inspection.
Sectors facing the highest number of revocations include adult social care, hospitality, retail, and construction.
Welsh added: “Foreign talent is an important resource for UK businesses with over 136,000 organisations and institutions registered as licensed sponsors for work and study.
“It’s imperative that businesses ensure they not only adhere to fair employment practices, but also stay up to date with their sponsor compliance and related staff training, prepare themselves for unannounced audits by being audit-ready at all times and having expert support on hand in case the worst happens.
“If they don’t, they risk losing one of their most valuable resources – their staff.”
