Twice as many licences allowing companies to bring in migrant workers were revoked last year compared to the previous 12 months, according to the latest data.
The Home Office said bosses had their licences cancelled for abusing the immigration system, including “underpaying and exploiting workers” and using the work visas system to help migrants get around the law on how to enter or remain in the country.
The government, which is facing growing pressure on immigration, said the figures showed a continued delivery of “real action to secure our borders”.
The Conservatives said ministers were “tinkering around the edges” of the issue and were not serious about cutting the number of people arriving in the UK.
In the year to June 2025, 1,948 licences allowing companies to bring in migrant workers were revoked – more than double the 937 cancelled in the previous year.
According to the government, employers in adult social care, hospitality, retail and construction were among the biggest offenders.
Licences were revoked for breaking rules including failing to provide promised work and underpayment, and helping people to circumvent immigration rules.
Some bosses were said to have used visas to exploit workers who need their jobs to stay in the country.
Migration Minister Mike Tapp told BBC Breakfast that “a large proportion of asylum claims and illegal migrants are actually visa overstayers”.
“A part of that is employers who are scamming the system, and bringing people in when they shouldn’t be,” he said.
He added that the licence removals meant Labour was delivering on its promise to “ensure British workers come first and have opportunities”.
Better data and intelligence sharing between government and the police meant more employers were being caught breaking the rules, the Home Office said, where previously random spot checks were used.
It said the bans were part of a range of measures to tackle “sky-high migration” and expand sanctions, including closing businesses and issuing financial penalties.
But some firms said they relied on immigrant workers, and punishment threatened not only their business but immigrant workers themselves.
Shadow home secretary Chris Philp said: “Immigration remains sky-high, asylum grants are at record levels, and sectors from care to construction are hooked on imported labour because Labour refuse to train British workers or reform welfare to get people into jobs.”
Meanwhile, the chairman of think tank Migration Watch UK Alp Mehmet said that “while the number of licences revoked is higher than the year before, I should point out that getting on for 50,000 organisations can issue them”.
He said those seeking “higher skill visas” should require a degree-level qualification, and that employers “must also look locally before going overseas”.
The announcement is one of the first under new Home Secretary Shabana Mahmood, who moved from the Ministry of Justice during last week’s reshuffle, though the reduction in licences predates her taking office.
She said on Monday that the UK could suspend visas from countries that do not “play ball” and comply with the return of migrants who have no right to stay in the UK.