On 31 December 2024 and 1 January 2025, the UK government introduced a series of significant changes to the guidance for work sponsors, which could have important implications for both employers and sponsored workers. These updates reflect ongoing efforts to strengthen the sponsorship system, ensure greater compliance, and streamline the process for both businesses and individuals navigating the UK’s immigration landscape.
One of the key changes this blog will focus on is the sponsorship costs an employer is able to pass on to the employee.
The costs involved in sponsoring a worker for a visa in the UK can vary depending on the type of visa and the specific circumstances of the employer and employee. Here's a breakdown of the typical costs associated with sponsorship and who is generally responsible for paying them:
Who pays: The employer
Employers must apply for and maintain a sponsor licence to hire a non-UK worker. The cost of this licence depends on the size and type of the business.
Who pays: The employer
The employer must issue a Certificate of Sponsorship for each sponsored worker.
Who pays: Typically, the employee
The worker applying for the visa will need to pay the visa application fee. This fee depends on the type of visa and whether the worker is applying for a short-term or long-term visa.
Who pays: Typically, the employee
Sponsored workers are required to pay the Immigration Health Surcharge, which gives them access to the National Health Service (NHS) during their time in the UK.
Who pays: Typically, the employee
Sponsored workers must pay a biometric fee to provide fingerprints and photographs as part of the visa application process.
Who pays: The employer
Employers must ensure compliance with UK immigration laws, including maintaining accurate records of sponsored employees, monitoring their status, and reporting to the Home Office when necessary. This could involve costs for record-keeping, audits, and legal advice to ensure that the company meets all sponsor requirements.
Who pays: The employer
Employers sponsoring a worker for a Skilled Worker visa are required to pay an "Immigration Skills Charge" (ISC). This fee is paid by the employer at the time of issuing the Certificate of Sponsorship.
Clawback agreements are used by employers to recover expenses if an employee leaves shortly after receiving their work visa or permanent residency. These agreements help protect the employer from financial loss, but their legality and enforceability can depend on the specific situation.
It’s crucial for both employers and employees to fully understand the terms and legal implications before agreeing to such arrangements to ensure compliance with employment and contract laws. Employers should also be mindful of how these agreements are drafted, as they may be seen as penalty clauses if not properly structured, potentially rendering them unenforceable. Seeking legal advice before including clawback provisions in contracts is highly recommended to ensure fairness and compliance.
Employer Pays:
Employee Pays:
The updated guidance also clarifies that attempting to pass these fees onto an employee will be grounds for revocation of the sponsor licence, highlighting the critical importance of employers refraining from recovering such costs.
It is essential for businesses to review their processes, update policies, and ensure compliance with the latest regulations. Seeking legal or immigration advice may be beneficial, particularly when applying for a new sponsor licence or maintaining ongoing compliance.
Contact Migrate UK
If you have any queries relating to any of the above, please get in touch with the immigration team at Migrate UK on info@migrate-uk.com.