An Employment Tribunal has found that paying sponsored workers more than domestic workers carrying out substantially the same role amounted to indirect race discrimination where the employer could not justify the resulting pay disparity.

The First-tier Tribunal has held that workers engaged by an umbrella company were employed only during individual assignments, rather than under a continuous overarching contract. The decision provides a detailed analysis of mutuality of obligation and may be of wider interest in employment status disputes.

With zero-hours reforms are on the horizon, the government has launched a detailed consultation on the changes. 

The direction of travel from the Home Office remains clear: right to work obligations are moving beyond traditional employment relationships and into the flexible ways universities routinely engage people. There has, however, been a change to the immediate position for sponsor licence holders. 

The Fair Work Agency launched in April 2026 with a strong early focus on National Minimum Wage enforcement. Schools should take this opportunity to review their pay practices, working hours, and deductions to reduce the risk of non-compliance.

The government has announced a package of measures aimed at helping high-growth businesses expand in the UK, including a visa reimbursement scheme.