The UK government has introduced significant updates to its guidance on employer-sponsored migrant workers, focusing on sponsor responsibilities, cost allocation, and key personnel requirements. Below is a summary of the key changes that sponsors need to be aware of.
Clear Ban on Passing Sponsorship Costs to Employees
Recent scandals involving heavily indebted migrant workers in the care sector have prompted the government to crack down on exploitation. Employers sponsoring migrant workers are now explicitly prohibited from passing sponsorship-related costs onto the workers themselves.
Previously, only the immigration skills charge—£1,000 per Certificate of Sponsorship (£364 for small or charitable organizations)—was explicitly forbidden from being passed on to employees. Sponsors who do so risk losing their sponsorship license, which would prevent affected workers from continuing their employment and invalidate their visas.
The new guidance extends this prohibition to include other fees such as the Skilled Worker sponsor licence fee and associated administrative costs, including premium services. Attempts to recover these fees from sponsored workers may result in licence revocation. This restriction applies to sponsorship certificates issued on or after December 31, 2024.
“Associated administrative costs” cover UK Visas and Immigration (UKVI) premium services such as priority and super-priority processing, which can reach up to £25,000. Employers are advised to seek legal counsel when drafting contracts or cost recovery clauses related to migrant workers.
Stricter Requirements for Key Personnel: Must Be UK Nationals or Settled Workers
Effective January 1, 2025, sponsor licence applications must designate at least one Level 1 user who is both an employee, director, or partner of the sponsor and holds settled status or UK citizenship. Previously, these two requirements could be met by two different individuals.
This rule applies to all sponsors, including those sponsoring temporary workers, except in cases where authorised officers hold certain immigration statuses (e.g., Innovator Founder or UK Expansion Worker routes). It mainly affects startups and overseas companies without local employees, though alternative visa routes remain available during initial establishment phases.
“Settled” status includes British citizens, those with indefinite leave to remain, holders of the UK Ancestry visa, and Commonwealth citizens with pre-settled status under the EU Settlement Scheme.
The guidance also bars individuals legally prohibited from acting as company directors from serving as key personnel, unless a court permits otherwise.
All nominated key personnel must have a valid National Insurance number, unless exempted.
“Sponsor UK” System Pilot Underway, Future Transition Planned
The government is trialing the new “Sponsor UK” digital sponsorship management system with a limited group of sponsors issuing Government Authorised Exchange (GAE) visas. This system requires only Level 1 users and will eventually replace the current system for all sponsors, eliminating Level 2 user roles.
Persons with Significant Control Now Affect Sponsorship Eligibility
Individuals listed as “persons with significant control” on the Companies House register can impact an organisation’s ability to obtain and retain a sponsor licence, reflecting concerns about corporate governance.
Ban on Individual Sponsors and Household Employment Sponsorships
New rules prohibit individuals or families from sponsoring migrants in personal capacities, especially for domestic roles unrelated to the wider organisation’s activities. Since April 2024, new sponsorships for roles such as au pairs and domestic workers are no longer permitted, and existing roles can no longer receive new Certificates of Sponsorship.
The only exception remains private domestic workers in diplomatic households, where the diplomatic mission, consulate, or international organisation acts as sponsor under relevant international agreements.
Increased Oversight for Care Sector Sponsors
Following recent UKVI actions against care providers for licence suspensions and revocations due to violations, new guidelines require applicants for care sector sponsor licences to submit up-to-date Care Quality Commission (CQC) inspection reports for all branches and headquarters.
Tougher Penalties for Non-Compliance
Several sponsors operating without care services but charging fees have had their licences revoked. The guidance clarifies that sponsors must not function like employment agencies providing sponsored workers to third parties. Breaching this results in mandatory refusal or revocation of sponsorship licences.
Applicants for sponsor licences and Certificates of Sponsorship must demonstrate genuine job creation and meet wage and skill level criteria.
Immigration Fee Increases and Digital Transition
Biometric residence permits are being replaced by digital evidence of work rights. The guidance reflects this digital shift, including when short-term passport stamps suffice as proof.
An upcoming Immigration and Nationality Fees (Amendment) Bill is expected to raise maximum fees for some immigration categories, including a potential increase in the Skilled Worker Certificate of Sponsorship fee from £239 to £525.
Conclusion
Human resources teams are urged to review sponsorship policies, key personnel roles, employment contracts, and communications to align with the updated guidance.
The Home Office is intensifying enforcement, extending corrective action periods from three months to up to a year for even minor violations. Employers under such plans are barred from hiring overseas workers. Repeat offenders face doubled “cooling-off” periods before licence reapplication, from a maximum of 12 months to at least two years.
With sponsorship costs rising, businesses should also explore non-sponsorship immigration options, such as ancestry or global talent routes, to secure the talent they need flexibly and cost-effectively.
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