UK Corporate Immigration: A Practical Overview for Employers and Applicants
The United Kingdom’s corporate immigration system has undergone some of its most significant reforms since Brexit. Employers, HR professionals, and overseas talent must now navigate a tighter, more conditional framework shaped by recent government policy.
Key Takeaways
- Since Brexit, the United Kingdom has operated a points-based immigration system that treats EU and non-EU nationals on equal terms, administered by the Home Office and UK Visas and Immigration (UKVI).
- The Skilled Worker route remains the main visa for hiring overseas talent, requiring RQF Level 6 roles, a salary of at least £41,700, and B2 English from January 2026.
- From 25 February 2026, visa-exempt travellers must obtain an Electronic Travel Authorisation (ETA) before travelling to the United Kingdom.
- Employers must check the right to work of every employee before employment begins; breaches can result in civil penalties of up to £60,000 per worker and loss of the sponsor licence.
The Legal Foundations of UK Immigration
The Statutory Framework
The Immigration Act 1971 remains the cornerstone of the UK immigration system. The day-to-day operation of the system is governed by the Immigration Rules, which are laid before Parliament as statutory instruments and updated frequently. The current consolidated set of Rules is contained in document HC 395, originally implemented in 1994 and amended hundreds of times since. In practice, the Rules and accompanying guidance are accessed through the Home Office’s official portal at gov.uk.
The Immigration Rules set out the detailed conditions for everyone coming to the United Kingdom to work, study, join family, or remain in the country for any other purpose. Although the Rules carry enormous practical weight, they are very rarely debated on the floor of Parliament before coming into force.
The Role of the Judiciary
Decisions by the senior judiciary play a significant role in shaping how immigration legislation is interpreted and enforced. The English High Court and the Supreme Court have, on several occasions, been willing to challenge the government where it has acted outside its lawful powers. One of the most important rulings in recent decades remains R (Alvi) v Secretary of State for the Home Department [2012] UKSC 33, in which the Supreme Court held that Home Office “policy” or “policy guidance” did not carry the force of law unless and until it had been formally incorporated into the statutory framework. This principle continues to influence how immigration policy is drafted and challenged today.
Brexit and the End of Free Movement
Following the United Kingdom’s departure from the European Union, EU law no longer takes precedence over UK domestic legislation, and free movement rights can no longer be exercised in the United Kingdom. The EU Settlement Scheme remained open to European Economic Area (EEA) nationals who arrived before the end of the transition period, with the original application deadline set at 30 June 2021. Late applications continue to be accepted on a discretionary basis in certain circumstances.
The Points-Based Immigration System
On 1 January 2021, a new points-based immigration system (PBS) replaced free movement, treating EU and non-EU citizens on equal terms. The stated aim was to attract highly skilled workers needed by key sectors and regions of the economy while reducing overall migration levels. Since its introduction, the PBS has been reformed repeatedly, with the most recent reforms moving the system in a noticeably more restrictive direction.
Recent Reforms
In May 2025, the government published a white paper, Restoring Control over the Immigration System, setting out an objective of reducing net migration and tightening access to work routes. A substantial package of Immigration Rules changes followed on 22 July 2025, raising the minimum skill level for the Skilled Worker route to RQF Level 6 (graduate level), increasing the general salary threshold to £41,700, and ending overseas recruitment for social care roles.
Subsequent measures have continued this trajectory. From 8 January 2026, applicants for the Skilled Worker, Scale-up, and High Potential Individual visas must now demonstrate English at B2 level (upper intermediate), up from the previous B1 (intermediate) requirement. The Immigration Skills Charge increased by 32 per cent in December 2025, taking the annual fee to £1,320 per sponsored worker for large employers and £480 for small or charitable sponsors. From 8 April 2026, sponsors must satisfy the salary threshold in each individual pay period, rather than relying on annual averages.
Who Administers Immigration Control?
The Home Office and UK Visas and Immigration
The Home Office is the government department with ultimate responsibility for the immigration system. UK Visas and Immigration (UKVI) is the division responsible for handling all immigration and nationality decisions, both within the United Kingdom and at overseas posts. Individuals wishing to enter the United Kingdom for employment must usually obtain a visa or entry clearance in advance, unless they fall within a category that permits in-country switching.
UKVI does not have agency status. It sits within the Home Office itself and reports directly to ministers. A strategic oversight board chaired by the Home Office Permanent Secretary now coordinates the work of UKVI, the Passport Office, Border Force, and other constituent bodies, ensuring a more joined-up approach to immigration policy and enforcement.
Entry Clearance and Consular Decisions
British consulates are primarily run by the Foreign, Commonwealth and Development Office, but immigration decisions made at those posts are taken by entry clearance officers who answer to the Home Office. The role of these officers has become increasingly important as the system moves towards a digital, pre-departure model.
The Migration Advisory Committee
The Migration Advisory Committee (MAC) is an independent body that advises the government on the impact of work-based migration on the UK labour market. In recent months, the MAC has been particularly active in reviewing the Temporary Shortage List of mid-skilled occupations and revising salary thresholds. Its final review of the Temporary Shortage List is expected by mid-2026, with implementation likely from July 2026.
Net Migration: Policy Objectives and Recent Trends
The direction of government policy over the past decade has been towards reducing the number of overseas migrants entering the United Kingdom for work or study. After Brexit, net migration nevertheless rose sharply, reaching a peak of around 728,000 in the year to June 2024, driven largely by the relaxation of Skilled Worker criteria under the previous Conservative government.
A combination of higher salary thresholds, the closure of the overseas care worker route, and tightened English language and skill requirements has now produced a substantial fall. According to the Office for National Statistics, net migration in the year ending June 2025 was estimated at around 200,000, roughly two-thirds lower than the previous year. The government has signalled that it intends to continue reducing net migration through further route-specific tightening, enforcement measures, and reforms to the path to settlement.
Border Control and the Electronic Travel Authorisation Scheme
The Home Office is also responsible for policing the United Kingdom’s borders. Immigration officers at ports of entry have wide discretion to refuse entry, and those refused on arrival generally have no right of appeal and must leave the country on the next available transport.
A major development in border policy is the full enforcement of the Electronic Travel Authorisation (ETA) scheme. From 25 February 2026, the scheme operates on a strict “no permission, no travel” basis. Visa-exempt visitors from 85 countries, including the United States, Canada, Australia, and EU member states, must now obtain a digital ETA before boarding any plane, ferry, or Eurostar service bound for the United Kingdom. Carriers are legally obliged to check each traveller’s permission to travel before departure or face civil penalties. The ETA currently costs £20, is valid for two years or until passport expiry (whichever comes first), and permits multiple short visits of up to six months. British and Irish citizens, including dual nationals, are exempt but must travel on the appropriate British or Irish passport, or hold a Certificate of Entitlement.
Right to Work Compliance and Employer Obligations
The Statutory Framework
Employers have an ongoing legal duty to check that every worker has the right to work in the United Kingdom before employment begins. The obligation derives from the Asylum, Immigration and Nationality Act 2006 and subsequent legislation. Substantial sanctions can be imposed on businesses that fail to comply, including civil penalties of up to £60,000 per illegal worker, criminal prosecution in serious cases, and the loss of a sponsor licence. Directors and managers who knowingly circumvent the rules can also be held personally liable.
Digital Verification and eVisas
The Home Office has continued to digitise the right to work process. Identity document validation technology (IDVT) and the online right to work checking service now provide employers with a statutory excuse against civil penalties, where the checks are completed correctly. Physical biometric residence permits (BRPs) ceased production on 31 October 2024 and expired on 31 December 2024. They have been replaced by eVisas, which are digital records of immigration permission accessed via an online UKVI account. By early 2026, most immigration routes had been migrated to the eVisa model, both for applications made from outside and from within the United Kingdom.
Expanded Liability Under the Border Security, Asylum and Immigration Act 2025
The Border Security, Asylum and Immigration Act 2025 received Royal Assent on 2 December 2025. Section 48 of the Act significantly expands the scope of right to work checks once implemented. Liability for failing to prevent illegal working will extend beyond direct employees to include contractors, sub-contractors, gig economy workers, and others engaged directly or indirectly by a business. The Home Office consulted with business on these provisions between October and December 2025; the government’s response and an implementation date are awaited. The Home Office has additionally extended compliance obligations to landlords through right to rent checks, and to banks through right to bank checks, with penalties for failure to carry out the appropriate verification.
Settlement, Sponsorship, and Forthcoming Changes
Earned Settlement Reform
The government is consulting on a fundamental overhaul of the route to Indefinite Leave to Remain. Under the proposals, the standard qualifying period for settlement will increase from five to ten years for most sponsored work routes, with a new points-based “earned settlement” framework. Very high earners will be able to qualify in three years, while applicants who do not satisfy strengthened employment and language requirements may face longer waits. The consultation closed on 12 February 2026, and implementation is currently expected in autumn 2026, though some aspects may not take effect until 2027.
Individuals approaching their five-year qualifying period under the existing rules should consider applying for Indefinite Leave to Remain before the new system takes effect, where eligible.
The Temporary Shortage List
The Temporary Shortage List replaced the Immigration Salary List in 2025. It allows sponsorship of a limited number of mid-skilled roles (RQF Level 3 to 5) that are considered critical to the United Kingdom’s Modern Industrial Strategy. Sponsored workers on this list cannot bring dependants to the United Kingdom and do not benefit from salary discounts. The current list is due to expire on 31 December 2026 unless the MAC recommends an extension following its review.
Graduate Visa Changes
From 1 January 2027, the Graduate visa will be reduced from two years to 18 months for bachelor’s and master’s graduates. PhD graduates will continue to be eligible for a three-year Graduate visa. Employers who currently rely on the Graduate visa as a bridge to sponsored employment should plan for this shorter window.
Sponsor Licence Compliance
Enforcement of sponsor duties has tightened significantly. Nearly 2,000 sponsor licences were revoked in 2025 alone. The most common compliance failures included incorrect Standard Occupational Classification (SOC) coding, salary figures falling below the going rate, inadequate right to work records, and job descriptions that did not match the role described in the certificate of sponsorship. Sponsors should treat licence compliance as an ongoing governance obligation rather than a one-off administrative task.
Conclusion
Corporate immigration in the United Kingdom is now more complex and more closely policed than at any time in recent memory. Successive reforms to the Skilled Worker route, the path to settlement, the right to work regime, and border control are reshaping the landscape for both businesses and individuals. In this environment, current and strategic legal advice has become more important than ever. Sterling Law’s immigration team supports clients across the full range of these matters and is available to discuss how the latest changes affect your circumstances.
