Immigration will be a board-level issue for UK businesses in 2026. An expanded illegal working regime will most likely affect every UK business, as will new rules on earned settlement. There will also be further tightening across key immigration routes, including sponsored work routes and business visitors. On top of that, the Home Office plans further enforcement measures for sponsors.

Major changes are also anticipated in employment law, some of which will interact with immigration developments. For details of these, see: What’s happening in employment in 2026?

Businesses that take a strategic approach to proactively assessing and mitigating immigration and employment exposures will be best positioned for the year ahead.

Short on time? Here are the key takeaways for businesses

• You should assess how the expanded illegal working regime will apply to you and get ready for its implementation in 2026. This is likely to require a review of your contracts and policies relating to how you engage workers, and investment in additional compliance resources.

• You should review how your business may be affected by the government’s earned settlement proposals. This will require you to understand which of your staff are currently in the UK on a settlement route (whether sponsored or non-sponsored) and to consider how to engage with them on their future eligibility for settlement. You should also consider how the changes may affect your recruitment and retention strategy for...

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