UK’s New Immigration Sponsorship Regulations

The UK Home Office has unveiled key updates to immigration policies that will reshape the way employers sponsor international talent. This change emphasise compliance and planning for businesses and individuals alike.

Starting December 31, 2024, significant changes regarding sponsorship costs for Skilled Workers will take effect. Employers will no longer be permitted to pass on certain costs to sponsored employees, addressing concerns about work-related debt and potential exploitation.

Under the new regulations, the following costs must be borne entirely by the sponsoring employer:

Sponsor Licence Fee: This applies to fees for new sponsor licence applications or for adding the Skilled Worker route to an existing licence submitted on or after December 31, 2024. These fees can total approximately £2,000, especially with priority processing services.
Certificate of Sponsorship Fee: Fees for Certificates of Sponsorship assigned from this date are also included. Employers must pay the £239 CoS fee for each worker for certificates issued from December 31, 2024.

These changes complement the existing prohibition on passing the Immigration Skills Charge to workers. However, employers may still recover other immigration-related costs, such as visa application fees, Home Office service charges, and the Immigration Health Surcharge.

Employers who violate these rules face strict penalties, including the potential revocation of their sponsor licence.

Losing a licence could result in significant financial and reputational damage, as well as disruptions for affected employees who may be forced to find new sponsors or leave the UK.

Action Plan for Employers

To ensure compliance and avoid penalties, employers should:

Review Internal Policies: Update immigration and employment policies to align with the new sponsorship rules.
Amend Employment Agreements: Adjust contracts, side letters, and clawback agreements to reflect the updated regulations.
Reassess Budgets: Evaluate how these changes impact recruitment budgets and plan for the additional financial burden.

For employers hiring international talent, these updates underline the importance of:

Strategic workforce planning.
Staying updated with compliance requirements.
Ensuring seamless operations by avoiding immigration-related disruptions.

By proactively addressing these changes, employers can continue attracting top global talent while adhering to UK immigration laws.

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