• New Restrictions for Companies Placing Foreign Employees at Third-Party Client Sites
  • November 25, 2014
  • Law Firm: Fragomen Del Rey Bernsen Loewy LLP - New York Office
  • Employers who contract out foreign nationals to work for third party clients are subject to new rules and restrictions as part of this month’s changes to the Immigration Rules. Employers must already ensure that their foreign workers are hired out only to provide services on the sponsoring company’s behalf. Service contracts must be available for potential Home Office inspection when visa applications are submitted and upon foreign workers’ entry to the UK.

    Inspection of Service Contracts

    The Home Office may request the relevant service contract upon a foreign worker’s entry into the UK, when the visa application is submitted and at the leave to remain stage. The Home Office can refuse applications if a copy of the contract is not provided, or if the contract does not comply with the service-provision requirements discussed above. Officials also retain the ability to check contracts during the course of an audit.

    Employers who assign sponsored workers based on non-compliant contracts risk loss or suspension of their sponsorship licenses, loss of their right to employ non-EU foreign workers, or downgrading to a B-rating within the UK tier system.

    What This Means for Employers and Foreign Nationals

    Employers must ensure that contracts involving sponsored workers are drafted to provide services on behalf of the sponsoring employer, as opposed to fulfilling a routine role for the client. They should also ensure that they remain responsible for the sponsored worker and their work product. This may require consultation with a contract attorney.

    Employers should be prepared for potential delays in the work visa process due to these restrictions, and requests for further information.