Global Immigration Compliance Guidelines for Employers and Lessons from Non-Compliance

Introduction 

Companies employ foreign nationals for various reasons like, fill the skill gap in their country of operations, to groom future leaders for their global expansion or help establish the process and procedures in a new geography, etc. When companies hire foreign nationals, they must understand and adhere to complex immigration regulations. Failure to comply with these regulations can have severe consequences, including substantial fines, damage to reputations, and legal action. In this article, we will delve into the importance of global immigration compliance for employers and examine real-world examples that proved costly for companies that failed to comply. 

Importance of Global Immigration Compliance 

Global immigration compliance regulations exist to protect the interests of both host country and foreign workers. The laws aim to ensure that the workforce is properly managed, foreign employees are treated fairly, and immigration processes are transparent and accountable. For companies, understanding and following immigration regulations is not just a legal responsibility, but also a strategic imperative for maintaining their global operations and reputation. 

Some of the important global immigration compliance requirements for an employer are valid work authorisations (i.e. Work Permit and Visa Validity), residence permits, right to work check, adherence to minimum wage, substantial change in role or location, usage of appropriate visas, bonafide business travel, and retention of records. Non-compliance to any of these requirements can have a detrimental impact on an organisation and the foreign national. The penalties for non-compliance have also been increased by various countries in the recent years. One such major increase is with the UK government which increased the civil penalty for employers, from £15,000 to £45,000 per illegal worker for a first breach and from £20,000 to £60,000 per illegal worker for repeat breaches.  

Case Studies on Immigration Non-Compliance 

In 2023, the UK government has issued civil penalties to the tune of £1.5 million, arrested over 300 people and deported over 150 people for immigration related non compliances. In 2023 a software services company agreed to pay $9.93 million to the US Department of Justice to settle charges related to work visa violation between the years 2014 and 2019. In 2013 an IT company agreed to pay $34 Million to settle the charges on various immigration non-compliances. In 2015 a major retail business in USA paid $11 Million in settlement charges for immigration violations.  

In 2015 an Australian Federal court fined a company, over AUS$175,000 for paying visa holder workers below the immigration law requirements and for illegally charging them recruitment costs. In 2020 the Singapore Court convicted a company for making false declaration on fair hiring and imposed a fine of $18,000. The Ministry of Manpower (MOM) barred the company from hiring foreign employees for 24 months.  

What should employers do to be compliant and reduce their compliance risk? 

There are many steps that an employer can take to identify and fix the potential compliance gaps. Some of the key components are listed below; 

  1. Proactive Compliance Measures: Employers should proactively develop comprehensive immigration compliance strategies. This includes appointing dedicated immigration experts or partnering with service providers specialized in immigration law to ensure they stay up-to-date with evolving regulations. 
  1. Regular Auditing and Record-Keeping: Regularly audit immigration-related records, such as visas, work permits, and related documentation, to identify any potential gaps or discrepancies. Robust record-keeping practices can save a company from hefty fines and legal troubles. 
  1. Training and Awareness: Employers must educate their HR and immigration teams, hiring managers, and executives about the importance of immigration compliance and the potential consequences of non-compliance. This ensures that all stakeholders understand their roles and responsibilities in the process. 

Conclusion 

Global immigration compliance is a critical aspect of international business operations. Employers who fail to adhere to immigration regulations risk substantial fines, damage to reputation, loss of customer confidence, impact to employee & family, and disruption of their overseas venture. By understanding the challenges, learning from real-world examples, and implementing proactive compliance measures, employers can navigate the intricate landscape of global immigration and ensure a compliant and successful global workforce. It is crucial for employers to evaluate their existing systems, processes, and records to ensure compliance and take corrective actions as required. Further, conduct internal and external audits to check the robustness of their processes to mitigate any risks. 

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