Deep Dive Analysis – United Kingdom: Visa Vignettes phased out for key routes: eVisas now standard

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On August 6, 2025 the German Federal Cabinet approved a new bill targeting undeclared work and illegal employment. The Financial Control of Undeclared Work (FKS) will have significantly broader powers and will introduce advanced risk analysis systems to identify non-compliance.

• Severe penalties for violations: fines up to EUR 500,000, exclusion from public contracts and
  subsidies, bans on new work authorizations for up to five years, and liability for deportation
  costs.
  Higher compliance expectations: increased scrutiny of onboarding processes, employment
  documentation, and subcontractor arrangements.
• Risk of exposure during audits: labor inspections may uncover payroll inconsistencies or
  immigration compliance gaps.
• Cross-functional risk: fragmented approaches between HR, legal, payroll, and tax functions
  heighten vulnerability.
• Digital readiness required: time tracking, personnel data management, and recordkeeping
  systems must be modernized to keep pace with data-driven enforcement.

The bill must still pass through the Bundestag and Bundesrat in the coming weeks. Final adoption is expected by the end of 2025, with some provisions entering into force as early as January 2026.

The bill must still pass through the Bundestag and Bundesrat in the coming weeks. Final adoption is expected by the end of 2025, with some provisions entering into force as early as January 2026. We strongly encourage companies to take a proactive approach in reviewing their internal processes and ensuring that their immigration, labor, and payroll practices are fully aligned. Vialto will continue to provide updates and guidance on corporate immigration strategy under the new government and new laws.

1. Severe penalties for violations: fines up to EUR 500,000, exclusion from public contracts and
   subsidies, bans on new work authorizations for up to five years, and liability for deportation
   costs.
   Higher compliance expectations: increased scrutiny of onboarding processes, employment
   documentation, and subcontractor arrangements.
2. Risk of exposure during audits: labor inspections may uncover payroll inconsistencies or
   immigration compliance gaps.
3. Cross-functional risk: fragmented approaches between HR, legal, payroll, and tax functions
   heighten vulnerability.
4. Digital readiness required: time tracking, personnel data management, and recordkeeping
   systems must be modernized to keep pace with data-driven enforcement.

More detail

On August 6, 2025 the German Federal Cabinet approved a new bill targeting undeclared work and illegal employment. The Financial Control of Undeclared Work (FKS) will have significantly broader powers and will introduce advanced risk analysis systems to identify non-compliance.

• Severe penalties for violations: fines up to EUR 500,000, exclusion from public contracts and
  subsidies, bans on new work authorizations for up to five years, and liability for deportation
  costs.
  Higher compliance expectations: increased scrutiny of onboarding processes, employment
  documentation, and subcontractor arrangements.
• Risk of exposure during audits: labor inspections may uncover payroll inconsistencies or
  immigration compliance gaps.
• Cross-functional risk: fragmented approaches between HR, legal, payroll, and tax functions
  heighten vulnerability.
• Digital readiness required: time tracking, personnel data management, and recordkeeping
  systems must be modernized to keep pace with data-driven enforcement.

The bill must still pass through the Bundestag and Bundesrat in the coming weeks. Final adoption is expected by the end of 2025, with some provisions entering into force as early as January 2026.

The bill must still pass through the Bundestag and Bundesrat in the coming weeks. Final adoption is expected by the end of 2025, with some provisions entering into force as early as January 2026. We strongly encourage companies to take a proactive approach in reviewing their internal processes and ensuring that their immigration, labor, and payroll practices are fully aligned. Vialto will continue to provide updates and guidance on corporate immigration strategy under the new government and new laws.

1. Severe penalties for violations: fines up to EUR 500,000, exclusion from public contracts and
   subsidies, bans on new work authorizations for up to five years, and liability for deportation
   costs.
   Higher compliance expectations: increased scrutiny of onboarding processes, employment
   documentation, and subcontractor arrangements.
2. Risk of exposure during audits: labor inspections may uncover payroll inconsistencies or
   immigration compliance gaps.
3. Cross-functional risk: fragmented approaches between HR, legal, payroll, and tax functions
   heighten vulnerability.
4. Digital readiness required: time tracking, personnel data management, and recordkeeping
   systems must be modernized to keep pace with data-driven enforcement.

More detail

On August 6, 2025 the German Federal Cabinet approved a new bill targeting undeclared work and illegal employment. The Financial Control of Undeclared Work (FKS) will have significantly broader powers and will introduce advanced risk analysis systems to identify non-compliance.

The bill must still pass through the Bundestag and Bundesrat in the coming weeks. Final adoption is expected by the end of 2025, with some provisions entering into force as early as January 2026. We strongly encourage companies to take a proactive approach in reviewing their internal processes and ensuring that their immigration, labor, and payroll practices are fully aligned. Vialto will continue to provide updates and guidance on corporate immigration strategy under the new government and new laws.

More detail

On August 6, 2025 the German Federal Cabinet approved a new bill targeting undeclared work and illegal employment. The Financial Control of Undeclared Work (FKS) will have significantly broader powers and will introduce advanced risk analysis systems to identify non-compliance.

The bill must still pass through the Bundestag and Bundesrat in the coming weeks. Final adoption is expected by the end of 2025, with some provisions entering into force as early as January 2026. We strongly encourage companies to take a proactive approach in reviewing their internal processes and ensuring that their immigration, labor, and payroll practices are fully aligned. Vialto will continue to provide updates and guidance on corporate immigration strategy under the new government and new laws.